Revisiting the Chinese Legal System and Environmental Regulations from 1949 to 2005

Abstract

This paper explains the gap between the conception (or expectation) of foreign investors and reality of Chinese regulations on the environmental issues. Two decades of the sustained economic growth in China might be enough for foreign investors to expect increased clarity, transparency and systematic approaches in environmental regulatory system. This paper traced the Chinese legal system back to 1949 as from 2005 so as to explain this gap between expectation and reality by employing historical and statistical analysis of regulatory developments. In the paper, for example, we will see the first official statement on environmental protection, i.e. Huanjingbaohuguihuayoadianhezhuyaocuoshi, which was issued by the State Council on 15 December 1974, and impacts of the Cultural Revolution (Wenhuadageming) of 1966-1976 on legislative activities in China. These will explain why Chinese environmental regulations may not meet expectation of foreign investors. At the same, the paper recommends where the Chinese legislators may have to close the gap for its sustained and sustainable economic growth.

Keywords: China, Environmental Regulations

JEL Classification: K23, K32