A world leading paper maker has seriously damaged the bio-diversity and ecological environment of a pristine rainforest in Hainan Province by the mass planting of trees in the nature reserve, Jin Zhicheng, China's State Forestry Administration spokesperson said yesterday.

The administration has ordered the Hainan forestry department to investigate the issue and to protect Southeast Asia's biggest original forest, where Indonesia-based Asia Pulp Paper is now mass planting eucalyptus trees, Jin said.

Overseas investors are welcomed to plant forest in China, but they must get approval from the Chinese government, Jin said.

The investors must follow scientific methods to protect ecological environment, and ensure any cultivation can't harm local economic development or local farmers, Jin said.

Environmental group Greenpeace on March 28 condemned APP saying that its eucalyptus tree plantation in Yingge Mountain had damaged the environment in the rain forest and was in violation of Chinese regulations.

However, APP has published a statement on its Website, claming that it had approval from the government before beginning operations in the woodland and that it didn't break any rules.

The company also said Hainan authorities had conducted a field survey on August 9, 2006 which showed that the timberland in question didn't belong to the nature reserve.

China has put a hold on the sale and leasing of state-owned forests to head off a potential environmental disaster.

The administration found construction projects covering 741.3 hectares of timberland across the country have been done without approval. And work on 2,874.4 hectares of timberland had begun before the official go-ahead was given.

The administration has ordered the Hainan Jinhai Pulp and Paper Co, a branch of Asia Pulp and Paper Co, to cease its efforts to purchase a large area of state-owned forest.

Jinhai had breached rules by attempting to acquire a 58 percent stake in the state-owned Yunnan Yunjing Forestry and Pulp Company in southwest China's Yunnan Province, involving a transfer of 66,667 hectares of woodland.

Chinese law requires that all transfers of state-owned forest resources follow strict evaluation procedures, and conform with State Council earnings distribution regulations.

(Shanghai Daily April 6, 2007)