"The time has come for venture capital in China," said Ta-lin Hsu, chairman of the British Virgin Islands-based H&Q Asia Pacific Ltd, in a keynote address to the e-Beijing 2001 Venture Capital Conference.

Hsu said the Chinese government's intensified efforts to protect intellectual property rights and the rapid development of high-tech industry are among key reasons for favourable conditions.

Hsu was especially impressed by a speech given by Long Yongtu, vice-minister of Foreign Trade and Economic Cooperation, in which Long pledged great efforts to protect copyrights, patents and trademarks.

Venture firms, which invest in innovation, require such assurances from the government.

Venture capital investors are also encouraged by the growing popularity of high technology and telecommunications. China has 85 million mobile phone subscribers, a large figure but less than 10 percent of the population.

By 2008, the number of Internet users in the country is expected to surpass that of the United States.

All that means that market potential is huge for telecoms, software, e-commerce, micro-electronics, bio-technology and online services.

China is blessed with high economic growth, low inflation and a stable government and currency, Hsu said. Also, the nation has a high-quality workforce with an emphasis on education and entrepreneurship, he said.

In particular, China has especially rich talents in the area of optical technology.

The country is also making efforts to develop its software industry, which attracts many Chinese scholars and students studying abroad to come back to launch their ventures, he said.

Hsu said his US$1.8 billion company will increase its investment activities in China, focusing on wireless telecoms, optical technology, bio-technology and IT-related services.

Since it entered the market seven years ago, the company has introduced US$170 million in venture capital to China.

(China Daily 05/10/2001)