The software export turnover of the port city of Dalian, in northeastern Liaoning Province, amounted to 54.2 million US dollars in 2004, up 73 percent year-on-year, said customs statistics.

Japan remains to be the biggest trade partner of Dalian, covering 92 percent of its total export turnover, while the other eight percent goes to Singapore, the United States, Hong Kong and Taiwan.

Dalian has more than 200 software companies, one quarter are foreign-funded ones, including Nokia, Ericsson and General Electrics.

One of China's major software production and export bases, said Mayor Xia Deren. Dalian plays an indispensable role in the revitalization of the old industrial base in the country's northeast.

The mayor acknowledged that his municipal government is now planning to build a software industrial belt in the city's northern part and will continue its software park project this year.

Moreover, Dalian will working hard to develop the outsourcing of software and information services, so as to make it China's biggest IT outsourcing center and software service center, Xia said.