China may bar polluting firms from export markets

BEIJING (Reuters) - China has threatened to bar firms that pollute from exporting overseas, in Beijing's latest push to reduce the environmental impact of the country's economic growth, the official Xinhua agency reported late on Tuesday.

Firms that seriously breach environmental protection rules would be banned from trading abroad for one to three years, the country's environmental watchdog and its commerce ministry have said.

Zhang Lijun, vice director of the State Environmental Protection Administration (SEPA), said the two bodies will work together to boost supervision of exporters, but did not comment on when the new rules might come into effect.

"(We) will set up a database to collect information of those exporters who violate environmental protection rules and also keep details of efforts made to clean up their act by these exporting companies," Zhang was quoted saying.

China has tightened environmental rules in recent years as it struggles to deal with a rising tide of pollution that is causing health costs and public discontent to mount.

But analysts say it is struggling to enforce new legislation, as local officials, who for years were encouraged to pursue growth at any cost, struggle to change their priorities.