The old-fashioned machines in the factory of Jinbiao Woolen and Textile Mills Co Ltd in an under developed county in southern Jiangsu province whir and grind all day, churning out reams and reams of cheap cloth to supply the many garment makers in the region.

Workers toil in the heat and noise inside the grim workshop that conjures up images of Dickensian conditions and William Blake's "dark, satanic mills". A middle-aged mechanic in sweat-stained undershirt and shorts walks from machine to machine listening for any unusual groans from the aging gears and belts that can presage troubles.

Although China has experiencing rapid economic growth during recent years, it is still falling behind in terms of productivity.

While Japanese textile workers are busy pressing buttons on computerized machines and increasing production by leaps and bounds, some of their Chinese counterparts are sweating in workshops without air-conditioning, using the sort of machines that disappeared from Japanese factories some 20 years ago.

It is a gap that the Chinese government intends to close.

On July 19, an executive meeting of the State Council approved an action plan to conserve energy and reduce emissions during the 12th Five-Year Plan (2011-2015). The gist of the plan is to save energy by eliminating inefficient methods and establishing advanced production facilities.

The robust growth of environmental-protection companies is the most convincing proof of society's support for the government's policy. Stocks of five listed companies in the industry rose by more than 5 percent on the day the work plan was approved, led by Zhejiang Fuchunjiang Environmental Thermoelectric Co Ltd - which specializes in the generation of electricity and heat steam through waste products.

By contrast, the Shanghai Stock Exchange Composite Index fell 0.7 percent to 2796.98 points on the same day.

About a week before the work plan was approved, the Ministry of Industry and Information Technology (MIIT) came up with a list of production lines and facilities that must be withdrawn from service by the end of the year. The list covers some 2,255 companies from 18 industries, with the focus on eliminating backward production facilities in heavy industries such as iron and steel, as well as cement production.