US industrial giant General Electric has struck a deal with the Chinese government to invest $50m (£27m) on developing green technologies.
China earnings could double says GE chairman Jeffrey Immelt
GE, which employs 13,000 people in mainland China, said energy efficiency and water filtration were among the projects to be developed.
GE's Chinese unit currently brings in revenues of $5bn and the firm believes it could double its business by 2010.
Up to 40% of its revenue came from infrastructure projects, GE said.
This made its plans a "good fit" with the Chinese government's aims as it modernises the economy, it added.
Much of the investment will go into GE's Shanghai research centre. Any developments made there would be used in its global markets as well as within China.
GE has also signed a deal with Beijing's Tsinghua University to provide research into less environmentally damaging products.
It will also train 2,500 managers and government officials in the country over the next five years.
"Not only do I view China as a market but I view it as a centre of excellence for research," said chairman Jeff Immelt.
He said GE already sold environmentally sound products in China such as 16-cylinder locomotive engines which reduce emissions by 28%.