Acid rain is a much pressing regional problem for China than the issue of climate change which has attracted most international attention. The article reviews SO2 emissions in China and points out the huge market potential in China for desulfurization technologies and equipment. By analyzing China's recent development in the environmental policy, it argues that buisiness opportunities in the area of desulfurization will increase. Foreign companies will have easier accesses to China's environmental market in the near future. Some practical considerations on market entry strategies are also presented.