China is becoming an ideal location for transnational companies to establish their research and development (R&D) centers, Zhang Zhigang, Chinese vice-minister of commerce, said in Xiamen Tuesday.

Addressing the ongoing Seventh China International Fair for Investment and Trade, Zhang said that China, as one of the most attractive countries for international investors, is qualified to serve as a base for advanced scientific and technological research and development.

Zhang said that China boasts rich human resources and an enormous market, and its technological level and production capacity can also meet the demands for R&D.

In recent years, China created a series of preferential policies to encourage overseas investors to set up R&D centers in the country.

So far, China has some 400 R&D centers set up by overseas enterprises. Zhang said that the figure shows rapid progress in the setting up of overseas R&D centers.

Investment in these centers, mostly coming from the United States, Japan, the European Union, Hong Kong and Taiwan, so far totals some three billion US dollars.

Zhang said that the establishment of R&D centers by transnational enterprises helps promote China's technological level and can better satisfy Chinese customers' diversified product demands.

The development of R&D centers in China can boost market competition and accelerate the development of China's market economy, Zhang said.

"To introduce advanced technology into China not only benefits the country itself, but is also in the interest of the whole world," Zhang said.

(Xinhua News Agency September 10, 2003)