Environment
China to Install Environmental Monitoring Equipment
China will install environmental monitoring equipment in three river basins, the Huaihe, Liaohe, and Haihe, and in three lake regions to measure local water quality and acid rain levels. These stations will report on water quality three or four times a year as part of the China Environmental Monitoring General Station work plan for 1997, and will aid in the environmental management of these areas, all of which were selected as priority areas for water pollution abatement during 1996-2000. In addition, pilot programs in ten cities, including Beijing, Tianjin, Shanghai and Shenyang, will forecast air and water quality.
China Daily (PRC), 12/12/96
Light Industry Sets Environmental Guidelines
China's National Light Industry Council has prepared a five-year plan to reduce the environmental pollution caused by light industry. China's 60,000 light industrial facilities, including paper making, food processing, and leather tanning, are among the country's largest sources of pollution. Plants will not be permitted to increase waste discharge when expanding operations and the entire industry will be required to meet state pollution targets by 2000. Priority will be given to clean-up projects in the Huaihe, Liaohe, and Haihe river basins and the Chaohu, Tianchi, and Taihu lake regions.
Xinhua (PRC), 12/10/96
TVE Polluters Face Loan Cutoff
A senior government official reported that the Chinese government will cut off all state funding for township and village enterprises (TVEs) that are considered environmental hazards. A National Environmental Protection Agency (NEPA) official said that the State Agricultural Bank would call off all loans to enterprises targeted during a state clampdown on polluting industries. Although the TVEs accounted for more than 40% of industrial output last year, their low technology and inefficiency makes them some of China's worst sources of pollution. China has ordered the closure of more than 70,000 small mines, paper mills, tanneries and refineries for polluting the environment. The NEPA official said that threats to revoke business licenses, cut off power supplies, or detain managers on criminal charges would also be used to bring polluting TVEs into line.
South China Morning Post (HK), 12/17/96
Quality Control Announced for Environmental Protection Products
China's National Environmental Protection Agency (NEPA) has announced that 282 domestic environmental protection products have passed a quality control test. NEPA has begun certifying environmental protection equipment in order to eliminate outdated technology and production installations. Quality control tests have been done on 425 devices, including industrial dusters, water pollution control equipment, garbage incinerators, and monitoring instruments. NEPA hopes to regulate the production and marketing of environmental equipment, and products without certification will be banned in coming years. As China's environmental market is standardized, more products will be certified. China has 9000 manufacturers of environmental protection equipment with an annual output of $3.75 billion. China plans to spend nearly $60 billion on environmental projects during the Ninth Five-Year Plan (1996-2000).
China Daily (PRC), 12/19/96
Environmental Spending Set
Xie Zhenhua, the Director of the State Bureau for Environmental Protection, said that China plans to spend nearly $60 billion on environmental protection in the Ninth Five-Year Plan period (1996-2000). $312 million of that total will go towards environmental science and technology research, which would focus on reducing industrial pollution and eliminating outdated technology. Xinhua (PRC), 12/18/96
Comprehensive Environmental Policy Stressed
China has outlined a number of strategies for long-term environmental protection. First, efforts will be made to stop pollution at its source, shifting focus away from traditional methods of cleaning up pollution after it occurs to incorporating environmental management into economic planning and development. Second, enforcement of environmental legislation will be increased. Evidence of this includes the closure of 1000 paper mills polluting the Huai River last summer and the closure of 50,000 small and local enterprises for pollution this fall. China intends to have all enterprises meet national or local pollutant discharge standards by 2000 or risk closure. Third, economic incentives will be adjusted so that pollution fees will exceed pollution control costs and other economic factors will be more ‘pro-environment'. Additionally, environmental spending will be raised from 0.8% of GDP now to over 1% of GDP by 2000. In Beijing and Shanghai, spending is expected to top 3% of local GDP. Finally, China will continue to implement various State plans for environmental improvement, like the Trans-Century Green Plan, and clean-up efforts for areas like the Huai River Basin.
China Economic News (PRC), 12/23/96
More Firms Closed in Environment Enforcement Actions
In an effort to reduce the environmental damage from rapid economic growth, some 57,000 small firms in China have been closed for pollution. The closures represent nearly 80% of those firms blacklisted for polluting the environment. The closures were effected by 20,000 environmental officials, who spread out over China to close paper mills, fertilizer factories, electroplating firms and sulfur extraction operations that were operating without waste treatment facilities.
South China Morning Post (HK), 12/27/96
China Will Use One Percent of GDP to Stop Growth of Pollution
A senior official at the National Environmental Protection Agency said that China intends to spend one percent of its GDP to help achieve a zero percent pollution growth over the next five years. The current spending of the environment is about 0.7 to 0.8 percent of the country's GDP, said Wang Zhijia, director-general of Nepa's international affairs department. As a result of the serious threat of pollution to China's environment, Nepa will undertake several measures. Spending on the projects to clean up the environment is now estimated to reach $22 billion, excluding local projects.
China Daily Business Weekly (PRC), 01/12/97
National Environmental Spending Will Focus on Water Pollution
China's National Environmental Protection Agency (NEPA) announced that it will spend up to 1% of national GDP on environmental protection by 2000, including $22 billion on nearly 1,500 projects to be launched between 1997 and 2000. This spending will focus on cleaning up polluted rivers and lakes, and NEPA will require that all cities with a population of over 500,000 be properly treating their sewage by the end of the century. Less than one-third of Chinese cities treat their waste, and even in cities that do, treatment capacity does not meet demand. China will also address industrial pollution by slating 15 more categories of small factories for closure by 2000. China has closed 50,000 polluting enterprises this year, forcing the layoff of 2.5 million people.
South China Morning Post (HK), 01/13/97
Major Cities Boost Environmental Spending
Two of China's largest cities, Shanghai and Chongqing, are preparing to increase their level of environmental spending. Shanghai plans to invest 3% of its local GNP on environmental protection during the Ninth Five-Year Plan (1996-2000), an annual average spending of $1 billion. Plans include the protection of the headwaters of the Huangpu River, the cleanup of Suzhou Creek, the replacement of gas-powered scooters with electric, and the conversion of 40% of all vehicles to unleaded gas by 2000. Chongqing, which has already made some strides in environmental pollution control, will spend 1% of municipal GNP on environmental protection. Efforts will focus on acid rain reduction, waste gas treatment, and industrial waste water and sewage treatment.
China Daily Business Weekly (PRC), 01/12/97
The Costs For Cleaning the Environment are Mounting
According to the China Environment News, the Chinese Academy of Social Sciences estimates that economic losses from environmental pollution are about $12 billion a year. These figures are more than 30 times China's environmental protection budget. It is believed that the most damaging losses are occurring in agriculture.
China Economic Review (Hong Kong), 01/01/97
Pollution Forecasts to Be Issued
With some of the worst air pollution in the world, China plans to issue its first pollution forecasts in several major cities. Mainly due to the country's heavy dependence on using coal, leaders have begun to acknowledge that air pollution is getting worse every day. Research by Chinese environmentalists and the World Health Organization discovered that air pollution in Chinese cities far exceed international standards. By June next year weekly reports will be issued in 47 cities. By June 5 this year 10 cities will be reported. These cities include some of the world's ten worst air polluters: Beijing, Shenyang, Xian and Guangzhou.
South China Morning Post (Hong Kong), 01/23/97
Enterprises That Pollute Have Bank Loan Privileges Revoked
The Agricultural Bank and the National Environmental Protection Agency announced yesterday that enterprises with hazardous pollution problems will not be granted loans. From this date forward, only enterprises that strictly abide by State policies on industry and the environment will receive loans, according to a notice issued by the bank and Nepa. The notice warned that local branches of the agricultural bank who give loans to the banned factories will receive punishment.
China Daily (PRC), 01/24/97
China's Environmental Framework Means New Burdens on Foreign Companies
As a result of China's rapid economic growth, the challenge of juggling the tradeoffs between industrial development and environmental protection is monumental. The leadership of China has made concerted efforts in the past few years to create a regulatory regime to help minimize environmental degradation. These recent developments are bringing China closer in line with Western environmental control systems, similar to the path taken in the U.S. Because of this, the U.S. and other foreign companies operating in China may be surprised by their new obligations, but at the same time could mean more business opportunities for environment-related firms. The newly amended law and air emission standards could help create a market for foreign-made stack emissions monitoring equipment and emissions control technologies. Although targets are not now stringently enforced, the increased political support for the implementing of environmental protection measures may encourage industries in China to add or update the emissions equipment. As for solid waste, the implementing regulations of the Solid Waste Law, which should be released in early 1997, will mean an increased regulatory burden for foreign firms. Those firms processing chemicals and metals, or other waste generating industries, may be especially affected. This law will leave many foreign firms somewhat unsure of their current and future cost obligations for waste disposal. A change that took place in April 1996 is that the NPC amended China's Criminal Law to make "jeopardizing the environment" a criminal offence. This will raise the significance of environmental issues and will probably bring about greater compliance. This could be a shrill for foreign investors however as many perceive that China's enforcement of environmental regulations is unequal because foreigners have more resources and experience. There will be more stringent requirements and tougher penalties for noncompliance in the next few years. Although this may place additional regulatory burdens on foreign manufacturing companies in China, they will also contribute to a higher degree of transparency and open new opportunities for new players to capitalize on the changes.
The China Business Review (U.S.), 01/01/97
The Rule of Chinese Environmental Law and Growing Public Awareness
The Chinese government has enacted a great deal of new environmental legislation during 1996 and a strong media campaign boosted public awareness of environmental issues. China's equivalent to the U.S. National Environmental Policy Act of 1969 -- the Decisions on Environmental Protection by the State Council, which appeared in August 1996 sets forth fundamental Chinese environmental policy and assigns responsibility to all levels of government from central to municipality to the enforcement of environmental laws and regulations. Improving environmental law awareness is part of a much wider trend to spread consciousness about, and obedience to, the rule of law by party, officials and the general public. Increasing public awareness and independent action, now allowed within limits, is the key to solving China's environmental problems. It appears that the margin of individual freedom in China is larger that foreigners and older generation Chinese tend to realize. One environmental activist told embassy officers that as long as an overall positive impression is conveyed, public criticism on such issues as pollution of the environment can be voiced without fear of reprisals. The slow evolution of people's minds is likely to be the horsepower driving environmental protection in China in the future.
US Embassy Beijing, Science & Technology, 01/23/97
Major Increase in Spending For Environmental Technology
According to a recent study by Sofres Consulting Asia Pacific, China's spending on environmental technology will increase dramatically to prevent pollution from affecting its long-term economic prosperity. Imports of environmental technology and equipment has risen dramatically in the past several years. Demand continues to climb with spending estimated to hit $13 billion by 2000 against the current level of $6.3 billion. The study said that the reason for the drastic increase is a combination of a change in priorities in the Chinese government and increased foreign direct investment` which have both made environmental protection a major issue.
China Daily (PRC), 02/06/97
Rigorous Pollution Controls for Township Enterprises
Although officials say that huge financial losses may result, China is warning that it will enforce stringent pollution controls on township enterprises. This would impose pollution checks on the fastest growing sector of the country's economy. There are 23 million locally-owned mines, mills and factories that are driving China's industrial reforms that will have checks placed on them. This sector of China's economy reported value-added output of $213 billion in 1996, one-third of China's total economy. As a result of the huge discharges of pollution they create, Beijing's Township Enterprise Bureau said the sector "poses a threat to agricultural development. While township enterprises contribute half of the country's industrial production, they disgorge one-fifth of the country's waste water, gas and residue." The regulations come three weeks after state-run banks announced that township enterprises cited as environmental hazards would receive no new credits.
South China Morning Post (Hong Kong), 02/13/97
Long-Term Environmental Plan Established
Chinese President Jiang Zemin said Monday that his government has drawn up a long-term plan to help reverse the damaging effect of pollution and "considerably improve both rural and urban environments," until the year 2010. Jiang added that before any large development projects are undertaken governments must ensure damage appraisals, but he did not say how his government would end the problem. His comments came on the heels of an announcement for a $22 billion cross-century green project that will focus on halting pollution growth in the next three years.
UPI, 03/10/97
Environmental Taxes Levied from Local Enterprises
Fujian Province has been so successful at collecting taxes for environmental damage that it has prompted 20 cities in the country to follow suit. Fees are collected from enterprises that are currently engaged in mining or other industries that exploit natural resources that causes harm to the environment. They are then used to restore the environment in problem areas. The experimental collection of fees is creating the basis for levying environmental taxes in the future, said Zhang Guotai, an official with the National Environmental Protection Agency. Since there is no state regulation or law to collect fees, several enterprises refuse to pay, he added. However, overall it has proved successful.
China Economic Information (PRC), 03/25/97
Market for Pollution Control in China
Last week, members of a U.S. Department of Commerce led environmental trade mission to China said they saw a huge market for pollution control in the country. This was the first real bilateral environmental cooperation activity after the U.S. China Forum on Environment and Development on March 25 in Beijing. Many other bilateral environmental activities are expected to soon follow. No contracts were signed but U.S. companies could have a very important role in assisting China with its growing problems of air and water pollution as well as waste management. Alan Turley, head of the Commercial Service at the U.S. Embassy in Beijing said that cooperation between the two countries should bear fruit because U.S. technologies and capital would be helpful to China's development. However, U.S. officials and business executives confessed that there was still strong competition from German and Japanese companies whose governments often provide soft loans for expansion into China.
China Daily (PRC), 04/07/97
U.S. Environmental Companies Vie for Niche in China
A groundwork laying trade mission in Beijing has just been completed by eleven United States environmental service and technology companies. Although other countries have a head start due to the large amounts of environmental aid they have given to China, these U.S. firms have confidence about moving into China. Last year China invested $6.7 billion on the environment, $2 billion of which was "accessible to foreign companies" , Christopher Adams, a U.S. Commerce Department official in Beijing said. China is very concerned about its environmental problems but government spending really remains quite limited. Around 25 percent of China's investment comes from bilateral or multilateral aid, Adams said. Japan and European countries also contribute large amounts of soft aid. Soft money going to non-U.S. competitors "does not pre-empt U.S. sales but makes them harder," said U.S. Embassy commercial head Alan Turley.
South China Morning Post (Hong Kong), 04/07/97
U.N. Waste Ban Deprives China of Raw Materials
A new agreement in the United Nations that would prevent industrialized nations from exporting hazardous wastes may soon deprive China and other developing Asian nations of essential raw materials. The Basel Convention on Hazardous Wastes is against the spirit of the World Trade Organization that will lead to huge economic losses for many nations, according to many delegates at the International Chamber of Commerce meeting in Shanghai on Tuesday. Many companies in China will face an unknown future after the January 1 implementation of the convention, said Liu Fan of Amlom Metals Inc. Peter Netchaef, an Australian metals professor calls Basel "eco-imperialism", by which he means that industrialized countries force their environmental standards on less developed nations.
UPI (U.S.), 04/08/97