Following the establishment of the People's Republic in 1949, Zhanjiang developed new importance. In 1955 a rail link was built to Litang in Guangxi province, where it joined the Hunan-Guangxi Railway. Since then, Zhanjiang has developed into a major modern port serving southern China, usable by ships of up to 50,000 tons. In 1984 Zhanjiang was designated one of the "open" cities of China, where the central government invited foreign investment; this spurred the city's further industrial development. It has shipyards and engineering works; automobile, electrical-appliance, and textile plants; and sugar refineries, flour and rice mills, and chemical works.