ONE NorthEast has become the first regional development agency to open an office in Shanghai to build strong working relationships with China.

Dr John Bridge, chairman, officially opened the office earlier this month, highlighting the fact that about 20 Chinese organisations were now working in the North-East.

"Some are long established and others are more recent," he said. "The range is also impressive, from companies dealing in horticultural products, student and nurse recruitment into UK, to pure trading companies and a software development company."

The Chinese have ambitious economic development plans to underpin their entry into the World Trade Organisation and to support the 2008 Olympics. Regional companies will be invited to take advantage of these opportunities.

The North-East's universities and business schools now have more than 1,500 Chinese-speaking students each year. Most take courses at Northumbria University, with Durham and Newcastle also being host to significant numbers.

Secondary schools in Darlington and Newcastle also now include Mandarin language and Chinese culture courses as part of their curriculum.

Hummersknott School and Language College, in Darlington, is running the pioneering GCSE course, but deputy headteacher Ann Hughes said the school's approaches for financial and moral support from One NorthEast had been met with silence for more than a year.

It irritated Mrs Hughes that the agency mentioned the school when it opened the Shanghai office, yet had not shown support.

"The money is a major issue," said Mrs Hughes. "but it would have been better if the agency had just said 'we don't have any money but we think it's valuable and will give you all the moral support we can'."

It was One NorthEast which recommended that the school offer Mandarin, following a language skills capacity audit.

A spokesman for One NorthEast said the agency's external relations manager for learning and skills had met Mrs Hughes at a seminar on February 22, where it was explained that a member of staff dedicated to language development would be appointed soon. An appointment had now been made and a meeting arranged for next month to discuss possible funding opportunities.