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avoid further conflicts in the host countries, the Ministry of Commerce, China Exim Bankand other institutions will need to strengthen the policies guiding the environmentalperformance of Chinese companies abroad.Guidelines for Environmental Protection in Foreign Investment and CooperationEnvironmental risks have become business risks for Chinese companies – that’s reflected inofficial guidelines about overseas investment. Chinese banks, mining and hydropowercompanies have faced protests and lost multi-billion dollar contracts when their projectsdestroyed the environment. Chinese investors have started worrying about their long-termacceptance in host countries, and the government, about the country’s soft power. Since 2006,the Chinese government has issued a series of appeals and recommendations calling oncompanies to respect the environment, community interests and workers’ rights wheninvesting abroad. It has for example requested that investors apply Chinese laws if hostcountry laws are insufficient and that their projects comply with the international treatiesChina has signed.On February 18, 2013, the Ministries of Commerce and Environmental Protection issued theirlong-awaited Guidelines for Environmental Protection in Foreign Investment andCooperation. 32 Their goal is to guide Chinese companies “to identify and preemptenvironmental risks in a timely manner, lead our companies to actively fulfill their socialresponsibility in environmental protection, build a good foreign image of Chinese companiesand support the sustainable development of host countries.” The new guidelines have notbeen designed to stop projects, but to mitigate damages and improve projects that go forward.They stipulate that environmental strategies and management plans be developed,environmental impact assessments and mitigation plans for sensitive projects be prepared,environmental information be disclosed to the interested public and environmental aspects beconsidered in the supply chain. In substance the new guidelines are similar to theenvironmental recommendations of the OECD Guidelines for Multinational Enterprises. 33The OECD guidelines are the most important international norms for foreign investors andcover a broad range of topics from human rights to labor relations and corruption. They arewider in scope than the Chinese guidelines, but unlike China, the OECD does not have anyspecific guidelines for banks and the environment. Brazil, Argentina and numerous other nonOECD-countries have endorsed the OECD guidelines for their own companies. In contrast,China is not keen to follow norms prepared by rich countries without its involvement. Thenew guidelines add to the profusion of international norms, but Chinese enterprises may welltake recommendations from their own government more seriously than OECD norms.Box 7 & 8: Environmental and social stakeholders in ChinaAs such a big and famous company, however, the environmental performance of Zijin inChina is terrible. For example, on July 3, 2010, the Zijinshan Copper Mine hydro-metallurgicalplant, a branch of the Company, leaked copper acid into the nearby Ting River in Shanghangcounty of Fujian Province, resulting in the poisoning of 1,890 tons of fish and massive32http://english.mofcom.gov.cn/article/policyrelease/bbb/201303/20130300043226.shtml33OECD: The Organisation for Economic Co-operation and Development78