China's New Environmental Regulations

China's New Environmental Regulations

Thousands of factories are closed in China, which disrupt the supply chains and delayed shipment, impacting on the timely delivery of goods to end customers.  

China released new amendments to their Environmental Protection Law in 2017. The changes have been described as “the strictest Environment Protection Law” in history in China.

The amendments dramatically increase the level of personal and financial liability for environmental noncompliance and also place a much greater emphasis on the cooperation of local government administrators for enforcement of the rules, holding municipal and provincial party bosses responsible for environmental problems. Punishment for breaches can include demotion and restrict their chance for promotion. Needless to say, all levels of government now focus on enforcement of the new regulations.

Since then:

·         Central government authorities from the Ministry of Environmental Protection and the Communist Party's anti-graft watchdog have inspected tens of thousands of Chinese manufacturers and found that many don't comply with the new regulations.

·         Over 40 percent of all China's factories have been shut down at some point to be inspected by departmental officials.

·         More than 80,000 factories have been hit with hefty fines and criminal charges, (some resulting in jail time,) as a result of the inspections.

·         Some local authorities, who have traditionally turned a blind eye to breaches of environmental regulations, have closed factories even before inspectors have arrived.

·         Some factory owners have closed their premises in China permanently and relocated to other countries.