The PRC Law on the Prevention and Control of Air Pollution came into effect on September 1, 2000. The law sets forth requirements that construction projects must meet, and it also provides for an emission fee system, under which pollution emission fees can be charged on the basis of the types and quantities of pollutants emitted into the air. The law establishes a system of retiring obsolete equipment and processes that seriously pollute the environment. The law also provides for motor vehicle emission standards, controlling pollution from waste gas, dust and offensive odors.
Businesses must beware, as parties who create air pollution are liable to pay compensation for losses to units and individuals that directly suffer losses. Such cases may be taken to court. The law provides for the imposition of fines of up to RMB 500,000 and up to two times the amount of illegal proceeds for certain types of violation. Criminal liability may be pursued where the violations constitute a crime. There has been an upward trend in litigated cases, and 18,000 enterprises have been punished for damaging the environment in the first half of 2001. China's government has pledged its intentions to spare no effort in carrying out its environmental protection policies to achieve the nation's sustainable development. However, around 10,000 cases have yet to be settled as local governments have refrained from taking action for fear that punishment would impair local economies.
