More than 200 foreign software companies, including more than 40 Fortune 500 companies, have established businesses in Dalian.

"These companies bring advanced technologies, management ideas and innovation to Dalian," said Dailian Mayor Xia Deren, during the 2008 China International Software and Information Service Fair (CISIS) held there in June.

The government is encouraging local companies to expand overseas. Some Dalian-based companies like Neusoft, DHC, and hiSoft have taken the cue and broadened their international business and the city gained a competitive advantage as a software export and service outsourcing center.

Dalian Hi-think Computer Technology Co Ltd (DHC) is a pioneer in developing Japan-oriented outsourcing business. It has maintained an annual increase of 25 percent over the past 10 years. Its software export volume ranks No 1 in the nation.

"We will accelerate our overseas expansion. We have set two strategies for that aim: getting listed in the stock market and cooperating with more multinationals," says Liu Jun, president of DHC.