Focusing on the environmental impact of development, says private intelligence firm Stratfor, gives Beijing attractive cover with which to redirect investment westward, tighten control over foreign companies, and rein in growth:

By limiting investment from both foreign and domestic sources in projects along the coast, Beijing is betting that investment in less-developed areas will become more attractive. It is important to note that, by controlling investment, Beijing will be able to better shape the investments and actions of domestic as well as foreign companies. . . .

Using environmental laws to shape investment has an additional benefit for the Chinese government. By appearing to limit pollution, Beijing's leaders will ingratiate themselves with China's rural residents, who represent the bulk of China's population. The rural masses are often directly and dramatically affected by air and water pollution, sometimes costing them their livelihoods. They have used discontent with pollution as a pretext for criticizing local officials. Now, Beijing is co-opting their methods, removing a path to social unrest while appeasing rural citizens. This gives Beijing the political capital to implement other policies and keeps local officials -- aware that most Chinese are more loyal to Beijing than their county seats -- from straying too far from national policy.

As I've pointed out previously, the pollution control business in China should be robust for several years to come, regardless of the country's growth trajectory.