The local government in eastern Shandong Province has initiated a series of measures to alter its industrial structure, aimed at restoring clear water and blue skies to its citizens.

The new moves have impacted the regional economy, particularly the paper-making industry.

CRI Reporter Chen Xi has the details.

Reporter:

Coastal Shandong Province has experienced drastic environmental changes in recent years. Thanks to the new regulations, the province has lowered harmful emissions to one-seventh the previous level in the paper industry, one of the major polluters in the region.

Zhang Bo, a senior official with the local environmental body, says only 60 milligrams of organic compound is allowed for every liter of wastewater, the strictest standard in China's paper-making sector.

"The new environmental rules have two layers of functions. It can not only push enterprises to change economic growth modes and advance structural adjustments, but also sets precise legislative evidence for grassroots environmental protection institutions."

The green revolution in Shandong's paper industry has driven local large-scale enterprises to shift their industrial structures.

A leading paper-making enterprise, Huawen Papermaking Group, recently introduced new production equipment to meet the new regulations.

Zhou Fengxian, the president of the company, says the higher environmental protection standards have forced them to update the facilities.

"We adhere to the principles of improving our techniques, which greatly reduce emissions. Although it has lowered profits to some extent, we cannot sacrifice the interests of the country for our minor returns."

At present, large enterprises like Huawen have resolved pollution problems, boosting the local economy with over 100 billion yuan, or 14 billion US dollars, from the paper industry last year, boosting provincial tax revenues by 20 percent.

The local government has also allocated special funds for environmental protection projects and limited the development of industries that consume high levels of energy, such as electric power, cement, coal, and metals.

Chen Xi, CRI News