According to the China Daily newspaper, China Telecom says it plans to set up dedicated mailboxes for users to report cases of people sending junk email or "spamming".
Individuals will then receive a warning to halt their activities, or have their accounts suspended.
Persistent offenders are likely to be barred from internet access - perhaps permanently - whilst the worst cases will be reported to the police for further investigation.
Much of the junk email generated in China originates from firms and individuals seeking to sell goods and services online.
Dissident email
However, there is some speculation that the move may be designed to counteract the growing use of the internet by dissident and human rights groups.
Increasingly they have been turning to the web as a means of spreading political information and reports of human rights' abuses across the country.
Internet usage in China has increased rapidly in recent months doubling to 17 million users in the first six months of 2000.
As access to the internet has grown so too has the amount of "spam" traffic across China's networks, and industry officials say they are keen to stem the tide before it becomes uncontrollable.
Government caution
The Chinese government has so far taken a wary approach to the growth of the internet, viewing it as a potential threat to its control.
But on Monday President Jiang Zemin told a gathering of computer experts in Beijing that he regarded the development of internet communications as a top priority for China.
Speaking at the opening ceremony of the 16th World Computer Congress, he said e-mail, e-commerce and distance learning via the internet would be instrumental in the drive to develop China's economy and society.
He added, however, that unregulated growth risked swamping China in a "tide of trash", describing the web as being plagued by hackers, the violation of privacy, misleading information and security problems.