The State Forestry Administration has taken official action against the company and its operations in the south-western province of Yunnan.

"The investigation is not finished yet, but we have indeed spotted illegal logging in an APP project after initial investigation. We believe that both APP and local governments are responsible for the violation," Wang Zhuxiong, a senior SFA official told the official newsagency Xinhua.

The news comes in the wake of a damning report by Greenpeace on the company’s tree felling practices in Yunnan, which was released last November. The environmental group claims that APP sequestered a 1.8 million acre plot in, intensively clear-felled it and replaced it with plantation crops.

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