China does not care about the environment. Right?

CHINA is using an “iron hand”, in a silk glove (of an extra $12 billion) to achieve energy efficiency targets.

The hard line is being taken after it was revealed that energy use rose 3.2% in the first quarter compared to last year, reversing the decline in the energy used to produce each dollar of gross domestic product.

This is seen as a major setback in China’s push to cut energy use by 20% by the end of this year from 2006.

Premier Wen Jiabao held a nationwide videoconference and used the occasion to direct government officials to wield an “iron hand” and shut down inefficient enterprises. China Daily, in reporting on the videoconference, stated the Chinese government had also earmarked an extra $12 billion to pay for upgrades and other measures to reach its energy efficiency goals.

The government pledged to shut down hundreds of smaller coal-fired power plants, below standard steel mills and smelting plants, cement works, aluminum manufacturers, glass factories and paper mills.