Demand for paper is expected to rise as nearly 300 Chinese mills were shut down in 2007 alone, contributing to a 10% rise in paper prices over the year.

The move is said to be part of the Chinese government's bid to promote modernisation and consolidation within China's paper-making industry by shifting from straw to wood pulp, and an attempt to clean up the nation's rivers.

Andrew Brown, corporate affairs director for the BPIF, told printweek.com the purge could result in price rises and, with imports constantly "gaining ground", a shrinking manufacturing capacity could cause problems for UK publishers.

According to the Chinese Paper Association, small paper mills accounted for nearly 20% of the country's industrial water pollution in 2005 and the government clampdown is expected to result in hundreds being closing by 2010.

According to a recent Chinese news report, the price rises will soon hit publishers outside China if the closures continue.

Sandy Lu, economist for Shanghai's forest products industry group RISI, agreed the closures would "tighten the demand" and lift the price of paper worldwide.

Exports of paper products from China reportedly rose by 76% between 2005 and 2006.