More foreign investment and joint ventures are needed to improve China's education system, according to the Vice-chancellor of the University of Hong Kong. Cheng Yiu-chung was in Shanghai to speak about the importance of higher education in the Asia-Pacific region. He told an International Association of University Presidents' conference on the Pacific Basin that China's economic growth relied partly on its schools and universities. 'China has gone a long way towards laying the foundations for a vastly improved higher education system,' Professor Cheng said. 'Many of the innovations it has initiated have been extremely successful. But there is still much that needs to be done if China is to maintain the level of economic growth it has achieved in the past 18 years.' Professor Cheng said that tax breaks should also encourage investment.