The government has banned the growth of genetically modified rice, wheat, corn and soyabean for fear other countries would refuse to buy them even though the technology presents big opportunities for the future, according to a leading advocate of GM crops.

Chen Zhangliang is vice-president of Peking University, a bio-  technologist by training and chairman of five companies owned by the university. Peking University contains one of the country's key research centres for trans-genetic plants.

"Last year, Britain banned the import of Chinese soy sauce because it contained GM soyabean," Mr Chen told a luncheon before the opening of the World Economic Forum.

"In fact, we had used soyabeans imported from the US where half the output is genetically modified."

As a result, the Chinese Government banned the growth of genetically modified rice, wheat, corn and soyabean.

"We fear bans on the export of our products. This is a big controversy in Europe," Mr Chen said. "Some have proposed special areas set aside for export goods, where GM  crops would not be used. But this is hard to enforce since everyone wants to export.

"The government is very cautious."

Mr Chen said that scientifically the use of such genetically modified  crops was no problem.

"The government encourages research and development in this field. This is a significant technology but it is hard to market.

"There will be a very big opportunity in the future. It is sad when the developed world has advanced technologies but the developing countries cannot use them."

China does allow the use of modified cotton and tomato plants.

Mr Chen said that with revenue of 11.7 billion yuan (about HK$10.96  billion) last year his university was the richest in China.

The university had seven listed companies, three in Hong Kong and four in the mainland, he said.

Among the seven was Founder, which makes the software used to print 90 per cent of the books and newspapers in China. It was also the second-largest maker of personal computers, after Legend, Mr Chen said.

The university's businesses included a company with 60 per cent of China's market for Interferon, used in the treatment of the country's 30 million sufferers of hepatitis and diabetes.

The university owned a majority share in these companies but could not  trade them.

"If we could trade just 1 per cent, that would bring in more than the 100 million-120 million yuan we receive each year from the government," Mr  Chen said.

South China Morning Post AGRICULTURE Mark O'Neill in Beijing