Environmental enforcement actions clamp down on polluters

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China’s Ministry of Environmental Protection (MEP) circulated four public announcements in May 2013, in which it publicised: 1) 13 major pollution incidents that the MEP handled in the first quarter of 2013; 2) findings of a survey on groundwater pollution in the North China Plain area; 3) results of the MEP’s annual review of major pollutant reductions in all provinces and eight state-owned enterprises (SOEs) in 2012; and 4) a list of nine cases of environmental violations to be handled under the MEP’s close watch. The ministry also invited the media to monitor and provide public supervision of violators.

Implications for foreign investors

In the past year, the ministry has tightened enforcement measures in response to public outrage sparked by frequent environmental scandals. The MEP has not only shown its willingness in cases of severe violations to order entities to rectify violations, cease production and relocate operations, but also to “name and shame” by disclosing the identity of polluters.

This increasingly strict enforcement climate means that foreign companies operating in China must prepare for a more stringent regulatory environment and ensure full compliance with China’s environmental laws. Investors should conduct thorough environmental investigations of operations, and potential targets and business partners.

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Business Law Digest is compiled with the assistance of Baker & McKenzie. Readers should not act on this information without seeking professional legal advice. You can contact Baker & McKenzie by e-mail at: Zhang Danian (Shanghai) danian.zhang@bakermckenzie.com

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