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With the introduction of the “Law on the Prevention and Control of Water
Pollution” in 1984 (revised in 2008) and the Water Law in 2002, China established
regulatory control to prevent and control freshwater pollution and water
resource use. Some of the Water Law’s provisions allow for tougher penalties
on polluters, a discharge permitting system, citizens to bring class action suits
against polluters, improved standards, and increased transparency and penalties
for inadequate government enforcement 43 .
Historically for companies in China, it has been more profitable to pay pollution
fines rather than implement prevention measures to the point that some
companies incorporate such expenditures into their budgets. However, recent
amendments to the Water Pollution Prevention Control Law have raised financial
penalties on polluters with no maximum limit specified for serious
incidents 44 .
There were an
estimated 187,000
environmental protests
in 2012, which
is an average of 500
protests a day.
Addressing China’s water problems has been hampered by local government
efforts to protect local industries and jobs, government corruption, the desire
to sustain rapid economic growth, and the national environmental regulatory
body, the State Environmental Protection Administration (SEPA)’s “crippling
weakness” 45 . It is currently rumoured that the 1989 Environmental Protection
Law is being revised to place more emphasis on the environment as a consequence
of China’s environmental degradation 46 .
Reputational risks
Chinese citizens are increasingly aware of environmental issues, and activism
against water pollution is increasing. There were an estimated 187,000 environmental
protests in 2012, which is an average of 500 protests a day 47 .
In 2012, Greenpeace published the report “Toxic Threads”, exposing water pollution
by China’s textile industry. In 2011, a group of Chinese NGOs launched
China Water Risk, which is a non-profit initiative providing information on
water risks for businesses.
In China, 80% of
wastewater in textile
production comes from
the dyeing processing.
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