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Chinese Environmental law and its Impact on Foreign Investment

 3. General Assessment of Chinese Environmental Law Regulating Foreign Investment
 As far as regulating environmental protection of foreign investment is concerned, according to the introduction above, we can say that China has preliminarily established an organic and systematic legal system containing all kinds of special statutes and relevant laws and regulations which are vertically connected and horizontally intersected. Objective Speaking, Chinese Environmental Law, in the past 20years, have played a non-fungible role in advancing utilization of foreign investment and promoting environmental protection in China, esp. in economic open to outside regions, and they, to a great extent, have accelerated Chinese social and economic sustainable development.
 However, we have to recognize that currently, there are many grave environment problems in the course of utilization of foreign investment and that the imperfection of Chinese environmental law is a major reason. The imperfection embodies two aspects: (A) Legislative Fault: at present, there are over 30 laws and regulations regulating environment protection of foreign investment; but their contents are too general and disperse, to maintain necessary coherence and coordination between each other, even there are some legal conflicts and legal loopholes. among these laws. All these shortcomings made them difficult to operate and implement in practice. (B) Law-executive Fault: in some regions, the competent departments of foreign economy and trade empowered to review and approve projects of foreign investment, cancelled or simplified the procedure of reviewing and approval or lowered environmental standards when they reviewed and approval projects. For lack of specialized personnel and professional experiences. In order to introduce foreign in vestment, some localities even cancel EIA, or relaxed standards of pollutant quantity. Affairs concerning exemption, reduction of pollutant discharge fees and concerning failure to report “Three-Simultaneity” are commonly occurred. All these problems show that Chinese Environmental Law is facing severe challenge and is badly in need of perfection and development.


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