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  THE ENVIRONMENT

Dishonorable Discharge

Some 70% of China's lakes and rivers are heavily polluted, largely because more than 80% of its sewage flows untreated into waterways. What's more, even where waste-treatment gear is installed, some companies opt to pay fines rather than operate expensive equipment. Regulators say that while most major industrial plants have water-treatment facilities, one-third don't operate them at all and another third use them only occasionally.

There's a bit of good news: China expects to invest $61 billion in city waste-water treatment facilities between now and 2010.

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