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China's strategy to develop its vast western region is attracting more far-sighted overseas business people.

Although some of them have only a very small amount output value, the high-tech industries in the western region have really caught the attention of many overseas investors.

The on-going 3rd China Chongqing High-tech Trade Fair attracted32 overseas enterprises including those from the United States, the European Union, the Republic of Korea and Hong Kong.

Those taking part have brought to the trade fair high technologies involving bio-medicine, new materials, environmental protection, electronic science and technology.

The MIDA Group of Italy presented a production system which canmanufacture a kind of anti-seismic and heat-resistant precast slabused in constructing buildings.

An official with the group said that his group has reached initial agreements on cooperation with several plants in Chongqingand Yunnan Province in southwest China.

Statistics show that at present 13 of the world's top 500 enterprises have invested in the high-tech zone of Chengdu, capital of Sichuan Province, alone.

Hakan Gustafsson, general manager of the Ericsson (Chongqing) Telecommunications Co. Ltd., said that Ericsson is seeking new cooperative partners in west China and plans to include the western region into its global purchase network.

There have been successful examples of foreign businessmen investing in west China's high-tech industries.

The world's third largest petroleum giant Britain's BP AMOCO isproducing acetic acid in Chongqing and made a profit of 3 million U.S. dollars in the first year of operation.

BP AMOCO plans to make an extra investment of 128 million U.S. dollars before 2004 to develop new products and expand production,according to company sources.

David A. Henley, vice-president with BP AMOCO (China) Company, says that rich natural sources and human resources are the advantages luring foreign business people to invest in the high-tech field.

Some investors say that they are encouraged by the efforts of the Chinese government to improve the investment environment in the western region, citing huge funds earmarked for improving local traffic facilities and telecommunications infrastructure.

Provinces and cities in western region have worked out a seriesof preferential policies to lure overseas investors in the high-tech field.

Chongqing, one of China's four municipalities, has policies that permit foreign-funded high-tech enterprises, with foreign funds accounting for more than 60 percent of their total investment, to draw a certain amount for a risk compensation fund in the first three profit-making years before paying tax.

As part of the effort to facilitate the development of high-tech industries in the western region, education has been given the top priority in the city.

More children are continuing studies in universities and colleges with the help of relevant projects which aims to help more children in western region to finish schooling.