THE North-East is to reinforce its role as the new gateway to Europe for potential investors from China.

Growing market opportunities are being opened up to the Far East which could reverse current trends for contracts to be lost abroad - particularly in the manufacturing sector.

Regional development agency One NorthEast hopes to pull off a major coup by establishing premises in the heart of Shanghai's thriving business district.

The agency has had a presence in China for some time in the form of representative Tingmei Deng but the new offices will be a more permanent base from which to market the region.

Chief executive Mike Collier has been in China to launch the operation to Chinese industry.

"Clearly, the importance of the Chinese marketplace to the North-East is huge and we are very interested in attracting inward investment from China," said Mr Collier.

"We know there is immense interest in China in our new centres of scientific excellence taking shape in the North-East and the agenda we are pursuing in relation to science and industry.

"I will also use the visit to meet companies who have already invested in the North-East and those thinking about coming to our region."

One of the key elements of this success has been the International Business Centre Initiative in Gateshead. The scheme has proven attractive to Chinese companies and Gateshead Borough Council has played a major role in helping the region to attract investment from China.

The North-East has become the fastest-growing location for Chinese business activities in Britain outside of London, with 26 Chinese companies operating in the North East.

Baroness Symons, Minister for International Trade and Investment, said: "The North East has a well-established reputation for attracting Chinese investment and I welcome their initiative in this exciting and growing market."

The new Chinese base complements the agency's offices in the US, Japan, Taiwan, Korea, and Belgium.