Secondly, China is perceived as a higher risk country which, when coupled with the existing low levels of return, discourages potential investors. Positive encouragement is needed to provide foreign investors with the confidence to invest. Thirdly, the implementation of new technology may be slow because of China's desire to develop its own home-grown version. Given the pace of economic development and escalation in the environmental problems resulting from that growth, China may not be able to afford the luxury of waiting for the development of home grown solutions. China may need to embrace more quickly much of the new technology if it is to achieve acceptable standards of environmental management.
China does possess the technical capability to assimilate the transfer of new technologies.
China recognises many of these issues and is moving to put into place systems and structures for legal and economic co-operation between foreign and Chinese organisations. However, although China is increasingly receptive to foreign investment and assistance, it does so according to its own terms and schedule, which sometimes may appear unrealistic. The Committee suggests that the initial areas to target are coal mining, coal washing and the more efficient design of boilers and environmental equipment for new power plants. Concentrating on these areas could deliver significant improvements across a wide range of issues - from a reduction in pollution and emissions levels, better water and land management practice, safer and more efficient coal mines, the more efficient use of the transport and distribution system by energy products, higher thermal efficiencies in power stations and ultimately cheaper and more reliable power. This will require high level discussions with various Chinese authorities since Chinese collaboration and feedback are critical in the identification and selection of specific interest areas to be targeted.