Policies on Hazardous Chemicals in China

Date: 2016-01

“China has further strengthened supervision and management of production, storage, transportation, punishment and other aspects of hazardous chemicals industry after the Tianjin Explosion. Actually in 2015, the government has been cautious about the hazardous chemical projects since the new Environmental Protection Law of the People’s Republic of China was implemented. Take coal-to-chemical industry for example, there is no new coal-to-chemical project which has passed the Environmental Impact Assessment (EIA) in this year. In July 2015, Yili Xintian Coal Chemical Co., Ltd. failed to get approval of the Ministry of Environmental Protection on EIA on its 2 billion m鲁 coal-to-gas project. Later, the National Energy Administration issued a document about guiding opinions of coal-to-fuel projects. Some important departments including the State Administration of Work Safety, the Ministry of Environmental Protection and the Fire Department of Ministry of Public Security are clearly responsible for different aspects of the regulation to hazardous chemicals. So what are the stricter supervision policies? How are the policies development directions in the future?

CCM has solved these questions in this report after a great deal of investigations. For the supervision and management policies, the report introduces mainly from three parts:

First, examination and approval policy. Since Zhangzhou Px project explosion happened in April, 2015, and then the Administration of Work Safety launched a comprehensive inspection to all the domestic Px projects. Few months later, stricter access rules were implemented. From 1 Oct., 2015, the Ministry of Industry and Information Technology and the Ministry of Environmental Protection launched a regulation that all the new Px projects should be located in the Chemical Industrial Park.

Second, bank loan policy. After a detailed survey, CCM has found out that loan policy for the chemical enterprise doesn鈥檛 have a great change. Nevertheless, the bank pays more attention to some points: Is it a kind of high-tech enterprise? Whether the products have obtained some independent patents? It would be easier to obtain the loan if the enterprise meets those requirements.

Third, punishment. From 2014 to 2015, a number of laws and regulations have raised the upper limit of punishment. It would have a deterrent effect on the manufacturers. The new Law of the People’s Republic of China on Work Safety was implemented in Dec., 2014 and it raised the upper limit of punishment to 2-5 times. It would greatly have a deterrent effect on the manufacturers.

As for the future trend of hazardous chemicals industry, CCM thinks that admittance management, project layout and daily supervision mechanism would be the key points.

In addition, you can also know the following information from this report:
A detailed process for examination and approval of the new hazardous chemical projects and the relevant responsible departments in each process;
Detailed penalties to the enterprise and responsible person in different accidents;
Local regulatory policies in five provinces (Shandong, Inner Mongolia, Jiangsu, Shanxi and Guangdong) for the production, storage, transportation and other aspects of hazardous chemicals.

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