China’s Draft Environmental Code Proposes Stringent Controls on Chemicals

The 1,188-article draft, issued by the Standing Committee of the National People’s Congress, introduces stricter environmental governance aligned with the country’s climate and pollution reduction goals. Among its most significant features is a robust new framework for chemical substance regulation, which mandates comprehensive risk controls, strengthens supply chain transparency, and aligns with international treaties such as the Stockholm Convention.

Stricter rules on chemicals and pollutants

The Code's Pollution Prevention section consolidates existing laws on air, water, soil, noise, radiation, and waste, and introduces new regulatory instruments for chemical substances, light pollution, and electromagnetic emissions.

The chemical management provisions mark a major shift in China’s regulatory posture. These include:

• Mandatory registration of chemical substances
• Risk classification based on persistence, bioaccumulation, and toxicity
• Monitoring and disclosure of pollution levels and safety data
• Control of production, import, use, and disposal for substances of concern

Particular focus is placed on persistent organic pollutants (POPs) and emerging contaminants such as per- and polyfluoroalkyl substances (PFAS). These substances are widely used across sectors but pose long-term risks to human health and ecosystems. The new framework supports listing, monitoring, and ultimately restricting such substances through regulatory action.

Sector-wide impacts and compliance duties

The Code’s provisions extend well beyond chemical manufacturers. Industries reliant on chemical inputs—including automotive, aerospace, textiles, and consumer goods—will face increased pressure to trace, report, and control substance use throughout the supply chain.

Notably, the Code supports environmental labelling, green public procurement, and finance mechanisms linked to compliance. This creates new market advantages for early adopters of safer alternatives and more transparent sourcing practices.

Public authorities will gain stronger enforcement tools, while civil society and NGOs are empowered to bring environmental litigation. This reflects a broader trend toward participatory, accountable environmental governance—raising reputational and legal stakes for non-compliance.