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China became the biggest producer of mobile phones, colour TV and monitors in the world last year, according to statistics released by the National Development and Reform Commission yesterday.

The statistics showed that the nation's output for these products has respectively accounted for 35 per cent, 40 per cent and 55 per cent of the world's total.

China's high-tech industries witnessed boosts which were better than expected as part of its eye-catching economic growth over the last few years.

Total high-tech turnover in 2003 climbed to 2.75 trillion yuan (US$331 billion), accounting for a year-on-year growth of 30 per cent, the commission said in a report.

According to the report, the country has met its high-tech development target for the 10th Five-Year Plan (2001-05) period, two years ahead of schedule.

The commission also boasted that China has formed three high-tech development belts in South China's Pearl River Delta, East China's Yangtze River Delta and the region around the rim of the Bohai Sea.

China's exports of high-tech products reached US$110 billion last year, an average growth rate of 40 per cent over the past five years.

Despite the growth, Vice-Premier Wu Yi recently urged various governmental departments governing foreign trade, science, finance and taxation to deepen co-operative ties to increase high-tech content in its exports.

She said that government departments have made plenty of efforts since a strategy for increasing high-tech exports was outlined five years ago.

But certain value-added exports have long been a headache for Chinese manufacturers who make meagre returns from simple, low-tech production and are often troubled by anti-dumping charges.

Facing rapid progress in this regard, high-ranking officials and researchers have remained level-headed.

They said that domestic firms should step up their innovations to earn advantages of intellectual property, while integrating themselves with advanced technologies and overseas capital.

Science and Technology Vice-Minister Deng Nan said local companies will be at a disadvantage if they do not devote more efforts to research and development.

"Two-thirds of high-tech patents and inventions were registered by foreign companies last year," Deng said.

She also called on domestic high-tech firms to intensify the integration of financing for science and technology, and to improve the environment for investment and financing.

"For this purpose we should set up multiple capital markets, encourage the development of venture investment, and make that a means to drive the industrialization of high-technology," said Deng.

Over the next 15 to 20 years, the country must step up efforts to transform itself from a large manufacturer to a strong one through utilization of science and technology, Chinese Academy of Social Sciences researcher Lin Yueqin told China Daily.

"To achieve this goal, the country's high-tech firms should go abroad to compete in the global market," Lin said.

Lin suggested encouraging China's competitive electrical household appliance enterprises to set up plants in developing countries, as well as enhancing high-tech co-operation with enterprises in industrial countries and bolstering Chinese energy companies to help other nations explore oil and mineral resources.

Official sources with the Ministry of Commerce said the government has already mapped out a plan to assist with the establishment of hundreds of multinational enterprises, mainly in high-tech sectors.

The goal is for 50 Chinese enterprises to be among the top 500 of the world by 2015. Additionally, about 500 medium-sized and 5,000 small-sized multinational companies should be developed.

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