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Environmental Industry Welcomes Foreign Funding
Foreign investors are being encouraged to enter China's billion-dollar environmental protection industry, a blue-chip sector growing in double digits annually, said Zhang Zhigang, vice-minister of the State Economic and Trade Commission.

Zhang said China will invest US$ 85.4 billion (700 billion yuan) in controlling pollution over the next five years. He spoke at the China Environmental Roundtable held in Beijing.

In the next five years, the central government will continue to support pollution-control industries, especially the production of anti-pollution materials and equipment, recycling of waste and environment consultation.

The total value of China's environmental protection industry is expected to reach US$ 24.4 billion (200 billion yuan) by the end of 2005, Zhang said.

Therefore, China is hoping to attract more foreign investment for pollution control during the 10th Five-Year Plan period (2001-05), he said.

He also said that China's rapidly growing anti-pollution industry would provide "many good opportunities" for foreign investors, including simplified procedures.

Foreign investors and some State-owned enterprises also may enjoy some preferential policies if they invest in China's environmental protection industry, Zhang said. He would not elaborate on what those policies would entail. But he also emphasized that all environmental protection projects should receive an all-round appraisal to ensure their feasibility.

During the country's Ninth Five-Year Plan period (1996-2000), foreign investors injected US$4 billion (33 billion yuan) into China's environmental protection industry, largely in establishing pollution-treatment facilities.

The China Environmental Roundtable was sponsored by the Economist, a weekly international news and business publication, in association with the Economic Research Consulting Center under the State Economic and Trade Commission.

Senior government officials, environmentalists and representatives of noted international corporations like BP, Volkswagen and Sinosphere attended the forum.

(China Daily 09/28/2001)

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