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"Currently, the R&D centers of most domestic food enterprises are located in Shanghai. In fact, Wuhan owns a large number of top colleges and science institutions, and there are major food makers such as Bestore and fast food chain Zhouheiya," said Bestore vice-president Zhao Gang.

"Companies that aim to invest overseas should have a long-term vision, and not to focus just on short-term profits," he said.

"Coal, oil and steel industries already posted slower profit increases in March," said He, who also warned of pressure from rising costs and financial expenses.

"Chinese consumers have different preferences than US consumers. They value different parts of the animal," Dermot Hayes, an agricultural economist at Iowa State University, told China Daily.

"Companies were required to go to certain offices and fill different documents to complete the licensing procedures, which is a time-consuming and labor-intensive task for investors from other cities," said Chen Pengyun, chairman of a Tianjin-based vehicle trading company.