Good time for investors to go for green and high-tech

By Lan Lan

BEIJING - It's a good timing to invest in high-tech and green industries in China as the market is getting more mature, said experts and investors.

Tianjin International Joint Academy of Biotechnology and Medicine, a newly established institute based in the Tianjin Binhai New Area, has attracted more than 90 projects with an investment of about 600 million yuan since it opened last June.

"More than 60 percent are foreign projects and more will come. I think it's a misconception that the investment climate in China is worsening," said Zhou Zeqi, vice-president of the academy. Zhou said now is the right time for foreign investors to enter China's high-tech industries.

China unveiled new rules for foreign investment in April, encouraging it in high-tech industries, services sectors, energy-saving and environmental protection.

At the same time, the rules said polluting and energy-hungry industries are not wanted any longer.

Foreign companies operating in China are facing a changing environment and need to adapt quickly to a more mature Chinese market instead of complaining, suggested trade experts.

China lacked capital and had abundant and cheap labor force when it started opening up 30 years ago, said Li Zhongmin, an investment research fellow with the Chinese Academy of Social Sciences.

Now the nation has sufficient capital but the labor market is getting tighter, so it's natural the nation tends to welcome foreign investment with technical and managerial advantages, Li said.

Attacks on China's business climate have been mounting in the past few months. The latest move was a report published by the European Chamber of Commerce in China on Sept 2.

The report claimed foreign companies are facing "discriminatory treatment" in China and called for greater market access and a level playing field for EU companies in China.

However, it is difficult to identify any new government policies that explicitly target foreign firms, said the Financial Times.

Premier Wen Jiabao and Commerce Minister Chen Deming have reiterated that China will stick to reform and opening and provide foreign companies with treatment equal to that of domestic companies.