"We should vigorously push forward the development and popularization of the IT industry, which are crucial to China's modernization drive and future prosperity," said Chen Zhenggao, vice-governor of the IT and industrial sector of the coastal province.

Chen said he hoped for more industrialization at Wednesday's opening ceremony of the new IT company, Liaoning Neusoft Venture Investment Corporation.

Neusoft Co Ltd injected 70 million yuan (US$8.4 million) and Liaoning Technology Venture Capital Co Ltd invested 30 million yuan (US$3.6 million) in the new firm.

The local government will invest 200 million yuan (US$24.1 million) annually to the sector for the next five years to safeguard technological research and insure development.

"The new company is the farm land for small and medium-sized enterprises to grow on. Neusoft has the ability and full confidence to offer sufficient funds to them," said Liu Jiren, president of Neusoft Co Ltd.

Liu said venture capital can be used to select companies as well as enterprises that develop rapidly and have much potential. Liu said Neusoft Venture Investment Co will share the sound marketing network set up by Neusoft Co Ltd.

Chen said the output value of the IT industry could cover more than 20 per cent of the industrial sector.

According to 1999 local government statistics, scientific development for the 10th Five-Year Plan (2001-2005) will concentrate on nurturing high-technology industries and increasing IT industry through advanced technology.

"Liaoning should ensure the development of the high-technology sector increases with a speed of more than 25 per cent every year," Chen said.

"To meet the sector's high speed of development, venture capital is essential and urgently needed," he said.

(China Daily 03/24/2000)