Chinese Environmental Law For Foreign Invested Enterprises
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Chinese Environmental Law for Foreign-Invested Enterprises
Overview
Foreign investment in China is subject to stringent environmental laws, requiring an Environmental Impact Assessment (EIA) for many projects, especially in construction and renovation. This requirement applies to both new and existing enterprises. The EIA evaluates whether appropriate protective measures have been implemented for the project’s potential environmental impact. China is continuously moving towards more rigorous environmental standards and consistent enforcement.
Key Considerations
Foreign-invested enterprises may sometimes be exempt from the EIA. However, it is advisable to conduct a thorough environmental self-assessment as part of the feasibility study, addressing:
- Raw materials and chemicals used or stored
- Technical aspects of the production process
- Types and volumes of pollutants, including sewage, solid waste, and emissions
- Discharge details of liquid waste, including key parameters
- Measures for environmental impact prevention and control
Environmental Impact Assessment
If an EIA is required, its scope is determined by the Environmental Protection Bureau at the supervising government level (township, local, provincial, or national). The assessment typically covers:
- Water pollution (sewage)
- Atmospheric pollution
- Solid waste discharge
- Noise pollution
The focus may be on specific pollutants if they are identified as potentially problematic. Discharging pollutants usually demands a permit, and failure to obtain an approved EIA and necessary permits can lead to penalties, including project shutdowns.
The EIA process generally takes 2-3 months, depending on its scope. The associated costs include research, supervised sampling, laboratory experiments, testing, evaluation, and reporting.
Contamination and Clean-Up
If acquiring a site with existing environmental contamination, be aware that Chinese law usually holds the party responsible for contamination accountable for clean-up efforts. As environmental regulations evolve, the responsibility may extend to current land use rights holders or occupants. Conducting a thorough environmental survey as part of due diligence before acquiring land use rights is crucial.
Overall, staying informed and compliant with China's evolving environmental laws is essential for successful foreign investment enterprises.
You can find the original non-AI version of this article here: Chinese Environmental Law For Foreign Invested Enterprises.
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