As China is becoming the world’s manufacturing capital, attracting businessess from the West, its government is getting stricter than ever before with EHS regulation and compliance. Revised Chinese law sets no limits on the fines imposed on polluters and a new environmental law is slowly coming into force and being applied. Nimonik has 6 years of experience in China and a team of industry leading experts who analyze Chinese EHS regulations. This webinar covers: Overview of EHS laws and standards in China Recent changes to the EHS laws in China Challenges to ensuring compliance for foreign businesses in China Chinese EHS laws to keep in mind before starting a facility in China Best Practices to meet Chinese compliance obligations and stay ahead of the curve Who will benefit: Environmental and Safety Professionals from every industry who work or are interested in Mainland China The presenter, Ines Wang, is a senior EHS Regulatory Analyst in China with over 5 years of experience.

1. Chinese
EHS trends
Stricter Supervision under the Reform
of Simplifying Administration

2. Yusi Wang
Presenter
Regulatory Analyst
Nimonik
Jessica Minhas
Facilitator
Marketing Manager
Nimonik
Presenters

3. ● Legal Framework
● Approvals Required to Open a Factory in China
● Pipes Suit
● Administrative Simplification Before the Construction of a Project
● Administrative Simplification After the Construction of a Project
● Penalties for Violations
● Spirit of the Pipes Suit
● Conclusion
Agenda

4. ● EHS laws in China have recently changed
● Half of the mandatory national standards are no more relevant
● Regulations and penalties are now much stricter
Introduction

5. ● How strict is ‘stricter supervision’?
● What if organizations do not meet compliance obligations?
● Why did half of the national mandatory standards disappear?
You Might be Thinking

6. ● Are recommended standards important?
● What are the main legislative changes?
● Which organizations will be successful
under the new EHS trends?
● How will soil pollution be monitored?
What is the new pollutant discharge license
management system?
You Might be Thinking

7. National People’s Congress
Standing Committee of
the NPC
State Council
Constitution
Basic Laws
Special Laws
Administrative
Regulations
Departmental
Rules
Local
Regulations
Rules of Local
Government
Local Government
Ministries under
the State Council
Legal Frame and Legislatures

8. Land related
issues
Company name
pre-approval
Start EIA & SA
EIA Approval
SA Approval
Business
License Acquired
OHA Approval ESR Approval
Applications on
other aspects
Approvals Required for Opening a Factory

9. ● Simplify administrative procedures
● Loosen pre-event and strengthen post-event supervision
● Optimize governmental services
The Pipes Suit（放管服）

10. Environment
Before After
All environmental impact assessment
documents should be approved by
administrative departments
Just submit the registration form to
the administrative departments
Administrative Simplification Before the Construction of a Project

11. Health
Before After
● The preparation of pre-assessment for
occupational hazard should be commissioned
to the Occupational Health Technical Service
Institutes (OHTSIs)
● Projects with ordinary occupational hazards:
assessment report should be submitted to
work safety departments
● Construction projects with severe hazards:
assessment report should be applied for
approval
Organizations can do pre-assessment
themselves
Filing and approval procedures have been
cancelled
Administrative Simplification Before the Construction of a Project

12. Safety
Before After
National and provincial projects requiring pre-
assessment for safety:
•chemical industry
•metallurgy
•nonferrous metals
•building materials
•machinery
•light industry
•textile
•tobacco
•trade
•military industry
•highroad
•water carriage
•rail transit
•electric power, etc.
Significantly fewer projects require pre-
assessment for safety:
•metal smelting,
•chemical industry
Administrative Simplification Before the Construction of a Project

13. Environment
Before After
● Acceptance check on environmental
protection facility should be
conducted by environmental
administrative departments
● Pollutant discharge license
management will replace
acceptance check for projects
involving pollutant discharge license
management system
● Acceptance check report should
be commissioned to a third party
for projects not involving pollutant
discharge license management
system
Administrative Simplification After the Construction of a Project

14. Health
Before After
● Occupational disease hazard control
effectiveness assessment should be
commissioned to the OHTSIs
● Projects with ordinary occupational
hazards: acceptance check report
should be submitted to Work
Safety Departments
● Projects with severe hazards:
acceptance check should be
conducted by Work Safety
Departments
● Effectiveness assessment can be
done by the organizations
themselves
● Organizations can conduct the
acceptance check themselves
● A written report for the acceptance
check procedure is required
Administrative Simplification After the Construction of a Project

15. Safety
Before After
● Following projects should apply to the Work
Safety Departments for acceptance check:
○ Non-coal mine projects
○ Projects for producing or storing
hazardous chemicals
○ Projects for producing or storing
fireworks and crackers;
● Following National and provincial projects
should be submitted to the work safety
departments for archival purpose:
○ chemical industry
○ metallurgy,
○ nonferrous metals
○ building materials
○ machinery, etc.
Organizations can conduct acceptance
check on safety facility themselves
Administrative Simplification After the Construction of a Project

16. Is Starting a Business in China Simpler than Before?

17. 5% of the total
investment
Penalties for violating Environmental Impact Assessment
in 2011 and 2016

18. ● Shaanxi Coal Energy Company fined 15.8 million
RMB by Xianyang Municipal (Shaanxi Province)
Environmental Protection Bureau
● Discharged pollutants without pollutant discharge
license : 100,000 RMB
● Air pollution prevention facility not compliant:
100,000 RMB
● Consecutive Daily penalty for 79 days
● Total fine = 0.2*79M = 15.8Million RMB
Environmental Pollution Crime Case

19. Penalties for violating Occupational Health Assessment 2012 and 2017

20. Penalties for violating Safety Protection 2011 and 2015

21. Work Safety Accident Case

22. ● Dongguan DGK Component Company’s portal crane collapse
○ 18 dead
○ 33 injured
○ 18.61 million RMB direct economic losses
● Not compliant on special appliance’s utilization procedure
● No proper training for operators
● Fake special appliance’s operation license
● No prevention for hazardous weather
● 3 face criminal charges
● 20 face administrative penalties
Work Safety Accident Case

23. ● Amendment of 12 laws including:
○ Foreign Trade Law
○ Energy Conservation Law
● More power to Local legislatislation
● 50% of the mandatory standards converted to recommended
standards
Premise Simplification of Administration

24. New laws and regulations with stricter penalty
● Law of Environmental Protection Tax
● Clean Production Audit
● Industrial Energy Conservation
Foundation Less pre-event and more post-event supervision

25. Pollutant Discharge License Management System
is now the core of Environmental Management System
Foundation Less pre-event and more post-event supervision

26. Soil investigation and remediation
compulsory for land use transfers
Foundation Less pre-event and more post-event supervision

27. Foundation Less pre-event and more post-event supervision
Ministry of environmental protection seeking public comments for
the amendment on implementing daily penalties

28. Regulation on the
Implementation of the
Work Safety Law
Work Safety
Law
Regulation on
Work Safety
Emergencies
Regulations on the
Reporting,
Investigation and
Disposition of Work
Safety Accidents
New Work Safety Legislation Frame

29. General Trend
Supervision will only get stricter
Current Trend
Simpler pre-event and stricter post-event supervision
Conclusion

30. Industrial organizations
Compliance is the new basis for competition
EHS Engineers
The only gatekeeper of compliance in organizations
Need to further improve compliance awareness
Consultants
Opportunities
Conclusion

31. info@nimonik.com
1-888-608-7511