The Environmental Regulatory Regime of the People's Republic of China: A Primer Addressing Practical Concerns of Foreign Investors

May 1997
Citation:
27
ELR 10228
Issue
5
Author
Zhang Hongjun and Richard J. Ferris Jr.

Editors' Summary: At the heart of China's economic development boom lies the investment of an increasing number of foreign companies. China's transition to a more market-based economy, however, has brought about swift regulatory changes that serve to confound the investment community, particularly in the environmental arena. This Article seeks to alleviate this confusion by describing China's environmental regulatory regime and what it requires of foreign investment projects. An effort has been made to cover topics of particular concern to investors, such as access to regulatory information, enforcement, environmental crimes, citizen-suit and comment provisions, judicial review of administrative decisions, liability for historical contamination of land, availability of waste-disposal facilities, and basic environmental requirements for foreign investment projects.

Part I of this Article describes the scope of China's environmental legislation and the structure of the Chinese legal system. Part II provides an overview of the environmental regulatory system. Part III sets out China's environmental "legislative plan" for the period 1993-98. Part IV provides a description of particular areas of Chinese environmental law and regulation that may concern foreign investors operating or contemplating operations in China.

Zhang Hongjun is Director of the Legislative Division of the Environmental Protection & Natural Resources Conservation Committee (EPNRCC) of the National People's Congress (NPC) (Beijing, China). Among other things, Mr. Zhang is responsible for the drafting and amendment of China's national environmental legislation, and oversight of local implementation of this legislation. Richard J. Ferris Jr. specializes in Asian environmental regulatory systems at Beveridge & Diamond, P.C. (Washington, D.C.). Mr. Ferris also serves as Geographic China Counsel for the Center for International Environmental Law (CIEL) (Washington, D.C.). Mr. Ferris has assisted the EPNRCC with the drafting of new national environmental legislation. The views of the authors are their own and do not necessarily reflect those of the Chinese government, Beveridge & Diamond, or the CIEL.

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