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China's rapid economic growth has boosted its air catering sector and provided a more liberal environment for overseas investors, especially since China joined the World Trade Organization (WTO) entry, suggests a Hong Kong investor.

The reforms made it easier for the sector to get raw food materials from safer markets, as health officials ensured imports were in keeping with international practices, said Wilson W. T. Wu, executive director of Beijing Air Catering Co Ltd and Shanghai Eastern Air Catering Co Ltd.

"As a special service and food processing industry, air catering requires very strict quality controls over farm products, such as vegetables and grains ... to make sure they are absolutely pollution free and safe before serving passengers," Wu said.

Unlike 20 years ago, when China began opening up to the outside world, more domestic firms now consult international regulations when making such decisions or doing business, Wu said.

"Such changes lead to more entrepreneurial management and higher efficiency in the use of resources and improved market orientation, creating a very favourable environment for overseas-funded companies or joint ventures to expand their businesses," Wu added.

Hong Kong Air Catering Co, headed by Wu's father, and Air China, the country's aviation flagship, established in 1980 the first joint venture on the Chinese mainland -- Beijing Air Catering Co Ltd.

In the past 22 years, the joint venture has produced nearly all the high-quality foods for passengers who have taken flights from or to the Beijing Capital International Airport.

"The joint venture helps us to eliminate the air catering sector's backwardness, which could only accommodate passengers with eggs and canned meat at that time," said Xu Bailing, former president of Air China.

The joint venture has invited not only overseas funding and food-processing technology, but also advanced management and fresh ideas, Xu said.

Air China and Hong Kong Air Catering Co signed last May an agreement to continue their co-operation for another 10 years.

The company has received its ISO 9001 quality certificate for providing high-quality services.

The company's management and technology have been used by 13 other large-sized air catering joint ventures -- in Shanghai, Nanjing, Shenzhen, Chengdu, Hainan, Xiamen, Qingdao, Guangzhou, Dalian and Tianjin.

"Generally speaking, we are more concerned about the basic investment environment and the stability and long-term character of investment conditions instead of simple preferences," Wu said.

"What we consider more is the long-term strategies, overall interests and comprehensive profits, as most of us are confident of the next 20 years in China," Wilson added.