"The forum has become an important platform for China and Arab world," Wang said. "For Chinese companies, it's a good chance to extend their markets into the Middle East; on the other hand, foreign enterprises can come to the west of China, which offers great investment opportunities."

Zhang Zuoli, major of Shizuishan City in Ningxia, told China.org.cn that the city is investing US$2.57 billion in a new industrial park. The plan is based on an earlier joint project between Singapore and China's Jiangsu Province.

"We have learnt a lot from coastal cities," he said. "We want to provide Chinese enterprises with a better environment to grow, and we also welcome foreign companies to set up factories here."

Premier Wen Jiabao's report to the NPC on March 5, underlined the government's commitment to "large-scale development of the western region".

The Ningxia government is planning to create a new economic zone – a "golden bank" along the Yellow River linking Ningxia's major cities.

"In the past, the agriculture of the area along the river was much more advanced. But the river can benefit not only agriculture, but also industry, city construction, tourism and culture," Wang explained.

"Better government services, a better business environment and better human and natural resources will attract foreign enterprises and encourage Chinese companies to get aboard," he said.