Blog: Will pollution-free projects prove investor-friendly in China?

Will pollution-free projects prove investor-friendly in China?

Foreign investors now have to pay more attention on energy saving and environmental protection when they expand their business to China for the country’s new policies to encourage foreigners to invest in sectors like high-end manufacturing, energy conservation and environmental protection, as well as development and research centres.

“China will enhance restrictions on foreign investment in energy-intensive high polluting and low efficiency industries,” Vice-Minister of Commerce Wei Jianguo said on a forum on the social responsibility of foreign invested firms in Beijing.

The country will also urge foreign investors to invest in the service sector without massive wasting of energy and pollution.

According to an official survey, many foreign-invested companies are better thantheir domestic competitors in energy saving and environmental protection. Twentyout 38 environmentally friendly firms are foreign-funded, accounting for about53 percent of the total, Wei said.

However, there are still some foreign investors in China simply focusing on cutting costs and neglecting requirements on product security, environmental protection and the security of staff, said Wei, hoping foreign-funded companies to attach more importance to natural resources, the environment, and corporative social responsibility. This move is part of the country s efforts to attract more high quality FDI which can benefit both economy and environment. Will this move actually motivate investors to make environment-favourable projects or will it impact the FDI negatively?