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Xi'an to Withdraw State Capital from Industrial Sector
Xi'an, capital of northwest China's Shaanxi Province, plans to withdraw a total of 50 billion yuan (US$604 million) of state capital from its industrial sector within the next two years.

As the first step in the plan, the city is advertising 60 state-owned and state-controlled share-holding industrial enterprises affiliated to the city government, to attract investment from both domestic and overseas business people.

Involving a combined capital of 8.06 billion yuan (US$975 million), these enterprises produce rolled steel, sewing machines, electrical machinery, chemicals and biomedicines. Some of the enterprises are profitable.

As a major industrial base in western China, Xi'an's industries cover machinery and equipment, communications and transport, electrical information, the aviation and space industry, biomedicine and petrochemicals.

The city's total industrial output last year was worth 104.7 billion yuan (US$12.7 billion) and the added value topped 29.89 billion yuan (US$3.61 billion).

Currently, the city has 46,243 industrial firms, employing 1.09 million workers. Of that total, 112 are state-owned.

The introduction of overseas and private funds into the industrial sector is part of the city's plan to revitalize its industry.

According to the plan, Xi'an also aims to promote the setting up of a modern corporate system by a series measures including allowing workers to hold shares and listing companies on the stock market.

(Xinhua News Agency February 12, 2003)

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