China Revises Environmental Code to Correct Excessive Fines
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China’s top legislature is reviewing revisions to the country’s sweeping Environmental Code that aim to curb the practice of levying excessive fines for minor violations, a problem that has created headaches for businesses and grassroots enforcers.
The draft amendments to the pollution prevention and legal liability sections of the code were submitted for a second reading at the ongoing 18th session of the 14th National People’s Congress (NPC) Standing Committee. The changes address complaints that fines have become disproportionate to the offense since a 2015 legal revision dramatically hiked penalties for polluters.
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- China’s top legislature is reviewing amendments to its Environmental Code to prevent excessive fines for minor violations, addressing business and enforcement concerns.
- The proposed changes aim for penalties proportionate to the severity and harm of violations, with clearer rules for adjusting, reducing, or waiving fines.
- Some local governments, like Shanxi province in June 2025, have implemented more flexible enforcement, waiving penalties for minor or first-time violations if corrected.
- 2015：
- A legal revision dramatically hiked penalties for polluters, increasing the prominence of issues with disproportionately heavy penalties for minor infractions starting from when the new Environmental Protection Law took effect.
- 2021：
- The Ministry of Ecology and Environment issued guidelines to promote more flexible enforcement of environmental penalties.
- 2025：
- The draft amendments to the pollution prevention and legal liability sections of the Environmental Code were submitted for a second reading at the ongoing 18th session of the 14th NPC Standing Committee.
- 2025：
- Wang Xiang, spokesperson for the NPC Standing Committee’s Legislative Affairs Commission, stated at a press conference that penalties should be proportional to the nature and harm of violations.
- June 2025：
- Shanxi province released a list of minor and first-time environmental violations that would not be penalized if the party corrects their actions.
- September 2025：
- Three sections of the Environmental Code completed their second review.
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