The Ministry of Science and Technology has vowed to speed up the process of restructuring China's science and technology sector during the current Five-Year Plan (2001-05) period.

Speaking at a news conference in Beijing yesterday, Xu Guanhua, minister of science and technology, said his ministry is looking to link the development of science and technology with the development of the national economy as a whole

One large aims of the reform effort, according to Xu, is to force scientific research institutes be more market-oriented.

The strategy is an attempt to push a perceived inability among once State-dependent research institutes to respond to market demands.

According to Xu, more than 240 research institutes under the State Economic and Trade Commission have been turned into profit-conscious enterprises since 1999.

Statistics show the institutes became more competitive and were able to raise staff salaries after the change.

A second part of the ministry's reform plan, according to Xu, is the encouragement of intermediary bodies, which are widely regarded as necessary for the transformation of scientific research results into marketable products.

Because the government no longer assigns tasks for research institutes, such intermediate bodies are indispensable, the minister said.

At present, there are roughly 400 productivity promotion centres and more than 100 business service centres across the country that have helped scientists venture into the realm of business.

Xu said the ministry also plans to continue its efforts to lure overseas Chinese students back to China with lucrative business opportunities and other enticements.

Overseas experts have expressed a number of concerns about moving back to China, including anxiety over their children's educations, but Xu claimed measures are being taken to address them.

On the employment side, the minister pointed to dozens of business parks for overseas students that have been set up in cities like Beijing, Shanghai and Guangzhou.

During the 10th Five-Year Plan, Xu said, the ministry will also work to enhance the scientific and technological capabilities of China's western regions.

Since the Chinese Government decided to develop the west, the ministry has been working on technical preparations for implementation of the development strategy.

One way in which they have done this is through protecting and evaluating big and medium-sized oil and gas fields in areas such as Tarim in Xinjiang so that researchers can get a clearer picture of natural resource reserves located in the west.

Xu claimed this work has been vital to progress on the country's effort to construct a huge west-to-east gas transmission line.

The ministry also plans to emphasize the development of China's high-tech sector over the next five years. According to Xu, the focus will be placed on information technology, modern agriculture and new materials.

Xu pointed out that the government has taken measures to promote growth in the high-tech sector, including a reduction in value-added-tax on software from 17 to 6 per cent.

The ministry's strategy for the 10th Five-Year Plan will also stress upgrading of China's agricultural structure.