Rapid industrialization and urbanization have been accompanied by accelerated exploitation of natural resources and massive increases in discharge of pollutants. Accordingly, China is facing unprecedented challenges in its efforts to environmental protection. As a developing country, now China is confronted with the dual task of developing the economy and environmental protection. Proceeding from china’s national conditions, China has, in the process of promoting its overall modernization program, made environmental protection one of its basic national policies, regarding sustainable development as an important strategy, which was carried out throughout the country large-scale measures for pollution prevention and control as well as ecological environmental protection.
China Environmental policy-The environmental protection has become an issue of great concern for China. China’s environmental protection policy plays an important role in improving the quality of people’s lives. The Anti-pollution Law, The Forest Law, The Land Law, The Law for the Protection of Wile Animals and Plants, The Mining Law and The Clean Water Act are examples of the government’s efforts to environmental protection. The Environmental Protection Law of the People's Republic of China is the cardinal law for environmental protection in China. Over the past 20 years, China has made very significant progress in addressing many of the challenges on environmental protection including land degradation, water pollution, air pollution etc.
China's government recognizes that severely worsening environmental conditions are impeding economic development and creating significant health problems. Accordingly, government investment has started to increase relatively rapidly. In 2005, China spent 238.8 billion Yuan on environmental protection, accounting for 1.31 percent of that year's GDP. And China promises to invest 1.35 percent of its GDP each year for the next three years in environmental protection. Besides, the China Development Bank supports china’s efforts to China’s environmental protection by providing more loans. By the end of 2006, it had given loans worth RMB201.8 billion to China’s environmental protection projects. Due to its low technology and industrialization level and shortage of capital, a closer cooperation on the international level is called for. Therefore, China encourages foreign players to enter this industry to elevate the technology, management levels and enriching financing channels.