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The 1,000-year old tale makes the peony sacred to the Chinese people and for natives of Luoyang in particular. Whenever they think of a national flower, the peony is always high on the list.

Now China wants to challenge the Netherlands, producer of the world's best selling flower of tulip. And China hopes to make peony the most popular flower in the world.

In 1999, the State Development Planning Commission approved a large farming project -- the Chinese Peony (Luoyang) Pilot Project for Industrialized Plantation.

Since then the Henan Xiannong Agricultural Development Co. Ltd. has been engaged in technological research into the plant.

By 2004, the company is expected to produce three million peony plants a year, according to Han Xianfu, general manager of the company.

Over the past few years, peony planting and trading has developed into a fledgling industry in Luoyang, central China's Henan Province.

However, compared with the Netherlands, whose tulip exports surpass 1.5 billion US dollars, Luoyang's peony business is quite small. In 1998, the city's peony industry brought in less than 10 million yuan in sales and less than 100,000 peony flowers were exported.

In order to promote the promising industry, the city government has encouraged local companies and farmers to plant more and better species of peony plants.

Meanwhile, Luoyang has tried to promote the peony trade and attract foreign business people. So far, the city has set up ten peony markets in large cities and has cooperated with foreign dealers to tap Asian, European and American markets.

Local experts have been working hard to improve the species and try to extend the flowering period. Their efforts have paid off. Now peony flowers can be seen all year round.

In the International Peony Garden, visitors can see 30 million peony plants in over 700 species.

The annual Luoyang Peony Festival in April also serves as a window to display the beauty and attraction of the sacred flower.