However, China is in great need of applied science in environmental protection, information technology, new materials and energy, and medical skills, so overseas Chinese with relevant expertise have an advantage, Lau said.
Zheng Mingjie, from Jilin province, went to Nagoya in Japan in 1990 for his PhD studies in engineering, settling there with his family and working as a researcher for an energy conservation design company in 1996.
Zhang planned to start an energy service company in China last year by sending his business proposals to local governments and venture capital companies in the country, but the competition for funding proved fiercer than he expected.
"I sent my proposal to a business plan competition staged by the government of Jiaxing, in Zhejiang province, but it did not pass the first round of 700 applications because I don't have the patent for the energy-saving technology," the 59-year-old said.
Zhang expected investment of 16 million yuan to set up his company. However, Chinese banks prefer to grant loans to projects that win government business plan competitions, while venture capitalists favor projects that generate quick money.
During the conference in Shenzhen, venture capital investors pledged financing of about 20 million yuan for 50 projects.
Most overseas associations also reached initial agreement for cooperation with domestic organizations, according to statistics released by the organizing committee.
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