Pollution- Looks like a major issue which the government would have to take some steps to control it.

I was very impressed by Chinese government on the subsidy they give for companies to encourage them to grow.

I came to know most of this pollution is emitted by small sized factories running during nights illegally. Why is it difficult for the same government to help this small scale factories to provide a subsidy to find a way to control the pollution so this small factories could still operate legally with control of pollution?

It would have to start from the legal system. I was surprised to see for a big country like China the legal system is not strong enough, to start from the local cops looks like they are not physically or technologically strong to keep a open eye on this kind of illegal emission of pollution on air and water.