Baoji was a historical town with about 7 000 people at the beginning o
f this century. The strategic location made it an important transport
and communication node in central China. Since 1949 it has attracted m
any government funded industrial and transport-related projects. By th
e early 1990s it has become the second largest city and a regional pol
itical and economic centre in Shaanxi Province with a population of 45
0 000. Under the current economic reform, the city faces new challenge
s and has to compete with other places for private investment. The cit
y planners are seeking new approaches to shape the future development.