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Dalian is one of the most successful Chinese cities in attracting Japanese and ROK businesses -- half of the city's overseas-funded businesses come from Japan and the ROK, more than 5,000 in number, and 40 percent of the city's foreign trade comes from the two countries, local government statistics show.

"The internationalization of Dalian has been largely due to Japan and the ROK, and Dalian has every advantage for building a free trade zone in northeast Asia," said Xia Deren, mayor of Dalian.

"We expect to develop the area of about 50 square km surrounding the Dagushan Peninsula into a free trade zone on the basis of the Dayaowan Bonded Harbor Area," he said.

"But, of course, it has to depend on the country's overall economic layout," he added.