High-tech industries will play a key role in the development of China's western region, Vice Governor of Shaanxi Province Chen Zongxing said in his keynote speech at the China Business Conference 2000.

The economies of the U.S., Europe, and other nations, especially in Asia after the economic turmoil, have grown rapidly because of high-tech and new economy industries, he said.

"So if the western regions want to close the gap between the western and coastal regions, the only way we think we can do this is to focus on high-tech industries, where we are relatively strong," he said.

Mr Chen said Shaanxi Province is seeking to focus on developing its aviation, electronics, car manufacturing and heavy metals industries, which the region is already strong in, to accelerate the economy and spur more high-value industries.

"That is the route for us to move from a backward province to developed status," he said.

The province now has about 300 high-tech industries, which produced 30 billion renminbi worth of goods in 1999, and enjoys a growth rate of about 30 per cent, he said. It is also home to a number of technological breakthroughs in China, having developed China's first rocket, colour TV tube, integrated circuit, 100 mega-watt circuit breaker, and Shaanxi was the first province in China to use low quality cereals as a fuel, according to Mr Chen.

To add to these strengths, Shaanxi's high-tech industries are looking to elevate their capabilities in developing computer hardware and software, in addition to digital technology, he said.