China Tightens its Environmental Law Control over New Investment Projects
April 01, 2007 | BY
clpstaffHow environmental law is applied in China, and how stepped-up enforcement of existing legislation is ensuring compliance with the State Environmental Protection Agency's objectives?
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By Tang Zhengyu, Sidley Austin's Shanghai Office
To combat worsening environmental pollution, the Chinese government is strengthening its environmental law control over new investment projects in China. Recent suspension of project approvals and the upcoming national corporate credit system are two examples of intensified efforts to enforce environmental laws and regulations in spite of ineffective local enforcement. While the perceived immediate economic cost savings from environmental non-compliance may be enticing, multinationals investing in China should be mindful of the potential consequences.