China's exports to a hungry global market are having a negative impact on the environment, on top of damage caused by the domestic market, the country's top political advisers heard yesterday.

About 40 percent of China's export commodities come from industries producing high volumes of sulfur dioxide, a main air pollutant, said a proposal tabled by the Central Committee of the Chinese Peasants and Workers Democratic Party (CPWDP), one of the eight major non-Communist parties.

The proposal has been submitted to the First Session of the 11th National Committee of the Chinese People's Political Consultative Conference (CPPCC), which opened Monday.

It said 44 percent of the country's export volume also came from industries causing high amounts of chemical oxygen demand (COD), a major index for water pollution.

The coal-rich northern province of Shanxi, a major coke supplier to European steel factories, contributed to 90 percent of China's total coke export in 2007, but the region suffered the worst pollution across the country, said Li Jinfeng, a CPPCC National Committee member and deputy director of the provincial commerce department.

"With export increasing, pollution worsens as well," Li said.

"I have to say the environmental problems not only result from domestic consumption but also from the international market."

While exports were vital, the environment had to be considered, advisors said.

"The environment actually pays the price for the export miracle," said Wen Xiangcai, another CPPCC National Committee member and official of the environment monitoring network under the State Environmental Protection Administration (SEPA).

China reported exports worth US$1.22 trillion and a trade surplus of US$262.2 billion in 2007.

On the other hand, 26 percent of China's surface water cannot be used for any purpose, 62 percent is not suitable for fish and 90 percent of the rivers running through cities are polluted, according to the SEPA.

In addition, environmental damages causes an economic loss of 280 billion yuan (US$39 billion) annually, equal to about 10 percent of the total gross domestic product.

A World Bank report said about 750,000 Chinese die early due to air pollution every year.

The CPWDP proposal said an environmental impact assessment should be imposed on export policies, trade agreements and even staple orders so as to filter those that might lead to severe environment damages.

"Industrial policies should be eco-friendly," Li said.

He suggested the government give back more tax revenue to industries for updating environment remediation facilities.

Some political advisers also proposed that the country adopt tax policies benefiting eco-friendly industries and charging polluters.