As the global financial crisis strains China's economy, slowed growth has taught the government a good lesson about environmentally-friendly practices.

China's rise in the past decade to become the world's fourth largest economy relied on high input, high energy consumption and high capital accumulation, resulting in negative effects on its sustainable and stable growth.

"The global financial crisis has exposed the problems rooted in country's economic growth," said Li Shengping, head of the development and reform bureau in Luoyang City of central Henan Province.

Companies that were heavy polluters are more vulnerable to the crisis while those with advanced environmentally-friendly technologies have become more competitive, according to Li.

In Changzhi City of west China's Shanxi Province, 160 companies have shut down since October because of higher overhead and product price decrease. All of these companies were engaged in high energy-consumption and high-pollution, including industries such as steel and calcium carbide manufacturing.

The companies, if not already closed by a nationwide campaign to eliminate outmoded business practices, will eventually be pulled out of the market for lack of competitiveness, industry analysts said.

Conversely, the Maanshan Iron and Steel Co. was noted for its strong resistance against the cold snap of financial crisis.

The company introduced a production line for train wheel last month, which became big news when most steel mills were cutting production.

The boom was a result of huge investments in energy-saving projects that helped cut costs, said general manager Su Jiangang.

Through waste-heat recovery, the company can generate 100 million kilowatt hours annually, or 60 percent of the demand. This saves the company 40 million yuan (US$5.8 million) each year. The use of an advanced energy-control system would cut more than 100 million yuan from the company's annual budget.

"Emission reduction and energy saving is not only an issue of environmental protection, but important to a company's profitability, especially when the financial crisis deteriorates the economic situation," said Gu Zhanggen, the Party secretary of the company.

Energy-saving measures also benefited small-businessmen like Deng Licui.

Deng owns a goose farm in Weiwu County of central Anhui Province. Her goose farm encountered its worst financial situation in more than 10 years when goose feather prices decreased drastically amid slackening demand.

Deng cut costs by installing methane generators on her farm. This saved her more than 10,000 yuan in electricity costs per month.

"A good earning is depends on the market, but cutting costs is one's own decision", Deng said.