The following are highlights of economic news reported in southwest China's Tibet Autonomous Region.

TIBETAN MEDICAL GIANT INAUGURATED

A new medical industry giant was inaugurated in Tibet's regional capital Lhasa Tuesday to boost the development of traditional Tibetan medicine.

Five Tibetan companies, including three leading pharmaceutical firms, have invested in Yuthok Tibetan Medicine Industrial Group, which has 100 million yuan (150,700 U.S. dollars) of registered capital.

The group's business activities will cover every aspect of the pharmaceutical industry, from herb planting, research and development to product sales and distribution.

Establishment of the group is aimed at integrating Tibet's rich medical resources and improving efficiency, said Lei Jufang, president of Qizheng Tibetan Medicine Co. Ltd, one of the shareholders.

Qizheng is a leading Tibetan medicine brand, famous for plasters and ointments to ease pain for rheumatism patients.

Tibetan medicine is at least 2,300 years old, having absorbed the influences of traditional Chinese, Indian and Arabic medicines.

Tibet has 18 medical firms that produce 148 kinds of medicine. Last year, Tibet's pharmaceutical industry yielded 628 million yuan of output.

HYDROPOWER STATION UNDER CONSTRUCTION

A leading Chinese power company has promised that the world's highest hydropower station in Tibet will not reduce water flows downstream on the Yarlung Zangbo River.

Damming of the river began on Nov. 12, marking the formal start of construction of the 7.9 billion-yuan Zangmu Hydropower Station. The move has caused concern in the downstream countries, including India, who fear the project will disrupt water flows.

"The river will not be stopped during construction," said Li Chaoyi, chief engineer of China Huaneng Group, the prime contractor for the project.

"After it becomes operational, the river water will flow downstream through water turbines and sluices. So the water volume downstream will not be cut," he said.

Li said environment protection would be a top priority in the construction and operation.

Zangmu Hydropower Station, with six 85-megawatt power generating units, is a key project under China's ambitious plan for Tibet's development.

The station will ease power shortages in central Tibet and boost regional economic development. The first unit will be put into operation in 2014.