Beijing promises blue skies and no red envelopes

Capital inflows to China are being squeezed by corruption and pollution and Beijing is ready to tackle both head-on to ensure a steady flow of funds, Vice-Premier Zhang Gaoli told a gathering of top executives from some of the world's biggest companies yesterday.

"If we can get individual rights under legal protection, if we can maintain economic activities in a fair way, and also have people's supervision, I think corruption problems will be definitely solved," Zhang said at a welcome dinner in Chengdu as part of the 12th Fortune Global Forum, which began here yesterday.

The government would undertake plans to protect foreign investors' legal rights and business interests, Zhang said, seeking to assuage fears over the mainland's legal environment, often cited as a deterrent for foreign investors.

He was equally emphatic on pollution. "The Chinese government has made a big resolution to tackle environmental problems and will begin with problems related to the fog and haze and the PM2.5 issue," Zhang said. 

The state media has been reporting that environmental issues from air pollution to food safety have made foreign companies slow down their investments and delay plans to send more executives to work in China. 

Zhang said he wanted China to have "blue sky, green land and clean water" so that the living standards of the people can be significantly improved.