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AmCham-ERM Seminar:

Comply or Close

Dr. Harley Seyedin, President,
AmCham South China

of new facilities to compliance of
existing ones was well publicized by
government at all levels and widely
reported in the media.

On Sept 19 2019, AmCham In Guangdong province, successive Piers Touzel, Country
South China and ERM China campaigns by local authorities have Manager, ERM China
delivered a seminar on the effects of not only focused on environmental
tightened regulatory requirements compliance but have also been used as a Dr. Cherry Hu, Partner, ERM China
on industrial facilities in China. tool to shut down or relocate industrial
facilities. One year after the Guangdong
Background Government issued the “Comprehensive
Rectification Work Plan for Poorly
Environmental supervision and Managed, Polluting and Small Industrial
enforcement has become a routine Enterprises in Guangdong Province” in
part of doing business across China. August 2018, authorities have announced
Over the last two years, more than one-third of the 60,000 polluting
400,000 environmental violation enterprises that were inspected would
notices amounting to more than 25 need to be shut down. Each inspection
billion RMB of fines were issued. of an industrial facility follows a similar
Over 20,000 industrial facilities have pattern, namely review of compliance with
been ordered to shut down causing environmental permits, environmental
chaos in supply chains and resulting sampling and investigation of surrounding
in severe disruption to foreign community complaints.
manufacturing business. While
many factory owners were caught by What next for the Chee Keong Lai, Partner, ERM China
surprise, they should not have been. Guangdong Province?
The shift from regulatory permitting
Between January and September 2019,
7,500 environmental inspections were

39 AmCham South China
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