Guangdong was the first province in China under attack from the fatal virus. Businesses suffered losses to varying degrees in the first half of the year.

Helping foreign-funded enterprises minimize their losses, guaranteeing the normal progress of projects funded by overseas investment and striving to make further developments top the work agenda of the provincial government, said You Ningfeng, the vice-governor of Guangdong.

At a recent provincial government meeting, company representatives had the opportunity to raise questions and put forward suggestions about further investment.

Michael Buenning, general manager of sales and marketing with Bosch (Shunde) Gas Appliances Co Ltd, complained that Guangdong's electricity was in short supply and was almost the most expensive in China.

You said the province is making efforts to ease the power shortage.

"With the construction of new power networks and power plants, the situation is expected to be better by the end of this month," he said.

According to a survey by the American Chamber of Commerce on the impact of SARS on the business of 400 US-funded enterprises, 160 businesses said they had suffered losses during the outbreak.

However, foreign business people have not lost confidence in the commercial viability of the Pearl River Delta.

Another survey showed about 75 per cent of companies surveyed consider the delta to still be their most preferred investment location in China.

The overall business environment in the area is considered very satisfactory.

However other areas such as taxation, customs services and the quality and supply of local personnel were major concerns.

Foreign-funded enterprises are high performers in the province's economic drive.

They now contribute to over half of the province's total industrial output value, according to local statistics.

(China Daily June 13, 2003)