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Policies on Hazardous Chemicals in China Edition (1)

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 m³ 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’t 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.

Companies Mentioned

Yili Xintian Coal Chemical Co., Ltd., Xianglu Dragon Group

Table of Contents for Report "Policies on Hazardous Chemicals in China Edition (1)"

Table of Contents

Executive summary

Methodology and introduction

1 Regulations on hazardous chemicals
1.1 List of hazardous chemicals
1.2 Regulations on hazardous chemicals
1.3 Interpretation of regulations regarding location of hazardous chemicals in China
1.3.1 National and provincial regulations on the location of hazardous chemical facilities Examination and approval process Documents required and criteria for obtaining bank loans Law enforcement efforts
1.3.2 List of penalties for breaching regulations

2 New and possible regulations post accident

List of Tables

Table 1.1-1 List of hazardous chemicals
Table 1.2-1 Major policies/regulations on hazardous chemicals in China
Table 1.2-2 Comments on major policies & regulations of hazardous chemicals in China
Table 1.2-3 China's departments responsible for the supervision and administration of hazardous chemicals
Table Examination and approval processes of hazardous chemical projects in China
Table Time needed to obtain production and hazardous chemicals operation license in China
Table Approval authority of several chemical projects in China
Table Supervision measures on the production, storage and transportation of hazardous chemicals by the Local Administration of Work Safety
Table 1.3.2-1 Penalties for illegal production of hazardous chemicals
Table 1.3.2-2 Administrative penalty of responsible party who doesn't fulfill the responsibility of safe production
Table 1.3.2-3 Penalties for accidents in hazardous chemicals production
Table 1.3.2-4 Case study of several policies/regulations

List of Figure

Figure Process to get production license for hazardous chemicals

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