China’s attitude to pollution is changing, and it isn’t good news for many of today’s manufacturers.
Manufacturing sector pollution is big news in China and is attracting the government’s attention now like never before. While improving environmental protection in China is positive, and it’s difficult to argue with the government’s wish to reform manufacturing practices as well as offering citizens a better quality of life, many manufacturers have, for too long, been flouting rules and are badly underprepared regarding compliance.
It used to be the case that the cost of complying with EPL in China (Environmental Protection Law) was higher than the fines one would be given for non-compliance. Since 2016 this is no longer the case, and they’re enforcing EPL actively.
We know that anti-pollution inspections in China are increasing rapidly and are being strictly policed.
In 2017, 18,000 polluting companies have been punished, and fines of 870 million yuan ($180 million) issued.
This puts a strain on manufacturers, as they scramble to adhere to new, and pre-existing rules, which are now being enforced; in many cases leading to shutdowns, shortages of components, and fines.
Even if your factory, or leading supplier, observe pollution regulations, can you be sure that any sub-suppliers also do so? Would you even know?
Worst case scenario: It only takes one sub-supplier who provides a crucial component to be shut down for breaking environmental laws for your whole manufacturing operation to fold like a house of cards. Unfortunately, factory closures in China due to environmental concerns are an all-too-real threat for manufacturers today.
Your challenge is to keep up with changes to environmental policy in China and ensure that your supply chain is robust enough to avoid any unpleasant surprises which can lead to adverse results, such as production delays.
Even if you have previously been compliant, the new EPL regulations may now have changed that. This is especially true of the more polluting industries, such as mining, chemical production, and smelting, to name but a few. This is also true of very common processes such as paint.
So if your old standards don’t stand up to China’s new rules, you will need a plan to make rapid changes to your compliance, or that of your supply chain.
The purpose of this whitepaper is to reveal the following China pollution facts:
By the end of this whitepaper, you will be better equipped to protect your Chinese supply chain from tougher new EPL regulations, as well as understanding China’s political and environmental landscape as we head further into the 21st Century.
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