Xiangfan, the second largest city in Central China's Hubei Province, has made impressive strides since the beginning of the year, Mayor Luo Hui said.

By the end of the first half, the city's gross domestic product reached 20.6 billion yuan (US$2.48 billion), up 8.1 per cent on the figure for last year, and revenues rose 14.5 per cent to 1.548 billion yuan (US$186.5 million).

"Agricultural revenue has greatly increased, and the quality of farmers' lives has improved," Luo said.

The total output value of agriculture, forestry, fisheries and stock raising rose three per cent to 4.348 billion yuan (US$523.9 million) by the end of the first half. The planting area of many products with high output has been expanded, bringing more revenue to the region.

Township enterprises have been keeping up the momentum in the past six months, realizing total revenue of 26.7 billion yuan (US$3.22 billion), up 11 per cent on the figure for 2000.

According to Luo, the city's industry, finance, business and trade are growing fast.

The auto and construction industries actively participate in the development programme for Western China, he said.

More roads have been built, including the Xiangfan-Jingzhou and Wuhan-Shiyan highways.

Science and technology have played an important role in the burgeoning economy.

Since 2000, 186 big projects have been implemented and 15 technological centres for large enterprises have been set up.

"In order to draw more investors, we spare no effort to improve the investment environment," said Luo.

To date, 12 joint ventures have been newly built, stimulating the region's economy.

By the end of last year, 430 foreign-funded companies had registered to invest in the city, and 277 have started operations. A total of US$131.3 million of foreign capital has been put to good use.

Public order is also very good, Luo said.

But he added: "Although we've gained profits in the first half of the year, there are some problems hidden behind."

To tackle the problems, the government will balance the development of different areas and industries, use more foreign capital, speed up the village economy, continue reforms of State-owned enterprises and guarantee the living standards of jobless people.

"With China's pending entry to the World Trade Organization, Xiangfan will surely face opportunities and competition," noted Luo.

The Xiangfan Zhuge Liang Culture Festival Central and Western China Trade Fair will be held between September 17 and 25 to showcase the city's favourable investment environment and abundant resources to guests from both home and abroad.

Among the activities that are to be held are a products exhibition, a trade fair, a science technology results exchange, tourism co-operation and forums on various topics.

It is estimated that representatives from more than 500 enterprises will attend the fair, about 150 of whom will come from abroad. The activities will be staged over an exhibition area of some 6,000 square metres.

"As a member of the Central and Western China Economic Co-operation Zone, we hope that the event will also help enhance the western region's economy," said Luo.