Solar power a better bet than Web 2.0? A detailed look at the enthusiasm and economics of foreign investment in China’s much hyped clean technology sector from the San Francisco Chronicle:
The statistics show that environmental technology is indeed among of the fast-growing segments for venture capitalists that operate in China. Clean tech investments in China increased 147 percent from 2005 to 2006, from $170 million to $420 million, according to a recent report by the Cleantech Group, a research and investment institution with offices in San Francisco, Beijing, London, Toronto and Ann Arbor, Mich.
While these sums are only a fraction of what the sector draws in the United States, environmental projects have become the third-largest investment area for VCs in China.”There are definitely many business options in China,” said Torsten Merkel, European director of Cleantech. “The market is growing rapidly, and the legislative environment is good.” [Full Text]