China has approved a US$2 billion paper making joint venture in which Japanese paper giant Oji Paper Co. Ltd. will hold a 90-percent stake, the nation's top economic planner said, ending a one-year delay.

The 15.83 billion yuan (US$1.97 billion) investment underlines how Japanese paper firms are looking elsewhere for growth opportunities as their domestic market, dominated by Oji and rival Nippon Paper Group, has matured.

Oji had earmarked 220 billion yen (US$1.9 billion) for the project that it announced last year to begin operations in 2008, pending government approval.

(For more biz stories, please visit Industry Updates)