A Taiwanese court decision halting construction of two hi-tech zones on environmental grounds has set off a wave of complaints from businesses increasingly under pressure from Chinese competition. The dispute comes at a crucial time as Taiwan, home to some of the world's biggest electronics makers, is trying to keep its tech sector competitive in the face of pressure from increasingly sophisticated rivals in China and elsewhere. Taipei's High Administrative Court last week ordered an immediate stop to all building activity in the two zones -- Chihsing and Erlin, near the central city of Taichung -- saying environmental impact studies were incomplete. 'Economic development and environmental protection are equally important, and what we did is aimed at pursuing the biggest benefit for society,' the court said. Executives, joined by officials in charge of industrial policy, criticised the decision Tuesday, saying it had pushed into limbo projects worth several billion US dollars. At stake are a flat-screen plant planned by high-tech giant AU Optronics with an estimated cost of 100 billion Taiwan dollars (3.1 billion US dollars), and a solar cell factory designed by Sunner Solar Corp, among others. 'The event will certainly have an impact on the investment front,' said Chen Yu- yu, a Taipei-based analyst with Capital Securities. 'Big bosses are expected to take that into consideration while weighing the feasibility of their future investments here,' he told selfnews. The National Science Council, which formulates policies for the high-tech industry, on Tuesday pledged to appeal the ruling. 'The ruling is improper,' said an official of the council reached by selfnews. But conservationists welcomed the decision, saying the Environmental Protection Administration (EPA) had spent too little time -- three months -- screening the environmental impact study of the Chihsing zone in 2007. 'Why rush? It's evidently designed to help AU Optronics,' said Shih Yue-ying of the Changhua Environmental Protection Union, an NGO. 'What the EPA did has put the health of local residents at risk.' While the ruling is not final, high-tech companies said they were in 'shock', arguing the high-tech zones are crucial to their investment strategies. 'Taiwan may be the only country in the world where national policy can be easily overturned,' said K.Y. Lee, chairman of AU Optronics Corp, according to the Taipei-based Liberty Times newspaper Tuesday. 'I'm afraid that not only industry but the country's competitive edge may be negatively impacted.... Even worse, investors may be scared away.' The ruling came just after AU Optronics President L.J. Chen announced plans to build two LCD facilities and two solar-energy plants at the Erlin base before 2022 at a cost of up to 400 billion Taiwan dollars. Company spokeswoman Hsiao Yawen said the court's move threw into doubt the government's determination to draw investments to the technology sector. 'We want to keep roots in Taiwan, but the problem is whether the government is able to provide a sound investment climate. We earnestly hope the government can solve the dispute in a wise manner,' she told selfnews. Chen, the analyst, predicted the government would likely come down on the side of business in the end. 'Since AU Optronics' planned investments will be able to create lots of jobs for the locals and help lower jobless rates, I believe the government will do everything it can to keep the investment projects in Taiwan,' he said. 