When Cai Wei was appointed energy consultant to Frank O'Bannon, the late governor of the US state of Indiana, and when he won accolades from his fellow auto parts suppliers, he felt something was missing.

It was "a sense of belonging".

"Although I had received numerous achievements in the auto industry in the US (including the Automotive News PACE award, a top honor for suppliers), I always wanted to do something for my country," he said.

The force behind the electric motor system used in high-end sport utility vehicles such as the BMW X6 and the Cadillac Escalade, Cai quit his job as chief technology officer at Delco Remy Inc in the US and returned to China, his homeland.

He established Jing-Jin Electric Technologies in 2008 in Beijing, which develops and makes electric motor systems and electric drive components for hybrid electric vehicles.

On June 15, Cai, along with 25 other outstanding overseas returnees, were each granted a onetime financial reward of at least 200,000 yuan, which is part of the Phoenix Plan initiated by the Chaoyang district government to attract overseas returnees.

China has experienced a brain drain in the past decade. Since 1978 more than one million people have gone overseas to study and only 275,000 have returned to the country.

To help deter that outflow of talent, Beijing is gearing up to lure back elite Chinese after their studies abroad.

Huang Bo, an official at the Central Business District overseas talent center, said Chaoyang district wants to attract 100 international professionals to the district over the next five to 10 years through the Phoenix Plan.

Applicants must be professionals younger than 55 with at least an overseas master's degree. They should have held key positions at renowned international organizations or have worked as professors at famous overseas universities.

Winners must work in Beijing for at least six months.

For those wanting to set up their own businesses, the Chaoyang district will offer 100,000 to 500,000 yuan in financial support as well as preferential policies and benefits including paid accommodations.

Cai said he established his company in Beijing because of the government's support as well as an abundant talent pool in the capital.

He said the government is very efficient in terms of fostering the development of some industries.

The country kicked off a project in 2008 to unveil 1,000 hybrid electric vehicles in 10 major cities.

"Plans on this scale would take years to happen in the US," he said.

In addition, hundreds of thousands of engineering graduates provide companies like his an ample selection of qualified workers.

But he believes bureaucracy and complicated procures to establish and operate companies may hamper the effort to attract foreign investment.

To register a company, the residents' committee where the office is located must post a public notice for 15 days.

"It takes one day to register a company in the US if all the documents are ready," Cai said.