State-owned Chinese firm invests $10 million into local tech sector

State-owned Chinese company Zhongguancuan Development Group announced Tuesday it will invest $10 million into a new "technology incubator" for the capital.

City of Ottawa officialssay its good news for emerging companies looking for investment, and a way into Chinas ever-expanding marketplace.

"On a scale of one to 10, this is a 10. This is fantastic China is, or soon will be, the worlds largest buyer of everything," said Bruce Lazenby, head of Invest Ottawa, which played a big role in enticing ZDG to Ottawa.

"What this does, is give us a straight pipeline into one of the most important research parks in China and therefore the opportunity to sell in China," he added.

Currently, ZDGs only other North American foothold is in Silicon Valley, California, so Chinese interest in Ottawa speaks highly of the regions growing tech sector, said Ottawa Mayor Jim Watson.

"They have tremendous credibility worldwide and we want to ensure that Ottawa and our high tech communities benefit from their expertise and vice versa," Watson said.