With the development of international trade and liberalization of international investment, the flows of goods and international capitals are accelerating. So the factors prices are tending to equalization, and different countries are making efforts to safeguard and enhance the international competitive power of their exports. Due to the variousness of production levels, natural conditions and environmental self-purification abilities among the different countries, the environmental protection issue in different countries is of varying degrees of importance, which makes it difficult to reconcile environmental protection standards between the developed and developing countries. As long as a country is preparing for the implementation of new environmental standards and protection measures, competitive power issues will attract widespread concerns in the international community. The judgment of relationship between environmental protection and industrial international competitive power has become a premise, on which whether one country can choose sustainable development model initially based.Although it is difficult to give strict and clear evidence by the related researchers that environmental protection standards influence industry competitive power, but the policy-makers, economists are fully convinced of this impact. In fact, many conflicts and negotiations in the international community’s are based on the intuitive judgment that the implementation of environmental protection measures directly affects the industry’s international competitiveness.With the continuous increasing of trade dependency, environment-related trade frictions are also continuously increasing in China after China joined the WTO. What influences on china’s export and industrious international competitive power will be brought by the increasing environmental protection measures? It is a forefront issue of international economic theory, and the answer to this issue not only is a theoretical analysis, but also has an important policy signification to the sustainable development of China’s economy.This dissertation aims at discovering the relationship between the environmental protection and international competitive power of industries, around which the mutual relations between environmental protection standards and competitive power of the export industries are analyzed on the results of previous researches by adopting modern economic theory and economic analysis method. On the basis of that, the sustainable, scientific and rational environmental protection mechanism of China are presented. The dissertation is comprised of following parts:1. The relationship between environmental protection and international competitive power of industries is lucubrated in economics’ opinion. The economic rootstock of the environmental problems is anatomized firstly, and the introduction of environmental factors to international economic theory is discussed then, the role of Pigou tax in the environmental protection and relations between Coase Theorem and property rights are broadly theoretically analyzed.2. The influences of environmental protection on international competitive power of industries are analyzed in the different angle of view, including the micro enterprises’ level, the industries’ level, and the macro-level countries. The research emphases focus on the environmental cost of the industry mechanism, and the impact of environmental protection on the GDP, industrial structure, and international trade are discussed.3. The measurement and evaluation methods of the influences of environmental protection on international competitive powers of industries are studied by adopting ERS method. And the selection of relevant indicators and their quantitative approach, the construction and evaluation of the ERS comprehensive assessment system, the evaluation methods of international competitive power, are discussed. To overcoming the limitation of the existing measurement evaluation, referring to the general principles of comprehensive evaluation, environmental investment levels, emissions per unit of output, and other indicators are used to measure the intensity of environmental protection.4. Comparative analysis of Sino-US environmental protection and industrial competitive power is proposed. By putting Sino-US related industries on the same perspective, the relation of the international competitive power changed with the industrious environmental protection intensity is validated through international empirical comparison, and the assumptions are tested with the comparison of the changes of output, the overall competitive power of the goods, the changes in market share, and the changes in trade specialization index, between China and the United States.5. Empirical analysis of the influences of China’s environmental protection on the industrious international competitive power is proposed. By taking China as the research object, the characteristics of China’s industrial pollution are summarized through sum up on environmental pollution status and emissions of industrial pollution. After related analysis of the relationships between environmental protection strength and competitive power of different industries, the conclusion that the international competitive power of China’s industries maybe not decrease simply with the enhancement of the environmental protection intensity, is given.6. The Countermeasures to improve China’s protection of the ecological environment of the international competitive power of industry are proposed, and the basic economic policy framework of China’s environmental protection industry and the international competitiveness is presented.