China Promulgates “Ecological Environment Code”: Part 7—Chemical Substance Management

The Ecological Environment Code of the People’s Republic of China was promulgated on March 12, 2026, via Presidential Order No. 70. As the second law in China to be designated a “Code,” it will formally take effect on August 15, 2026. The enactment of this Code signifies that China’s ecological and environmental protection has officially entered the era of “codification.” Chapter 34 of Sub-section 9, Book 2 (“Pollution Prevention and Control”), specifically regulates the “Management of Chemical Substance Pollution Risks.”

Overview

The core content of this chapter centers on full lifecycle management and risk prevention. Article 644 establishes fundamental management principles, explicitly stating that national regulations must be observed across all stages: production, import, storage, transport, sale, use, and disposal. Article 645 calls for the creation of a coordinated management and environmental risk control system for “new pollutants,” such as Persistent Organic Pollutants (POPs). It mandates that the ecological environment department of the State Council, in coordination with relevant departments, analyze risk trends and conduct investigations and monitoring.

Regarding supervision, Article 646 stipulates that the State Council’s ecological environment department shall exercise unified supervision over chemical pollution risk management nationwide. Simultaneously, relevant departments—including Development and Reform, Industry and Information Technology, Agriculture and Rural Affairs, Commerce, Health, Customs, Market Supervision, Disease Control, and Medical Products Administration—shall share responsibility within their respective scopes. Local governments at or above the county level also bear corresponding duties.

Key institutional frameworks include:

• Article 647 (Information Investigation): Establishes a chemical pollution information investigation system, authorizing the State Council’s ecological environment department to conduct periodic investigations. Enterprises and public institutions must provide information on physicochemical properties, quantities, uses, hazardous characteristics, and emission volumes.
• Article 648 (Substitution): Requires relevant departments to promote the substitution of toxic and hazardous chemicals.
• Article 649 (Key New Pollutants List): Mandates that the ecological environment department, in coordination with other agencies, formulate and dynamically adjust a “List of New Pollutants under Key Management,” clearly defining environmental risk control measures such as bans and restrictions.
• Articles 650 & 651 (New Chemical Substances): Establish an environmental management registration system for new chemical substances. Enterprises must apply for registration before production or import. It explicitly prohibits the unauthorized production or import of new chemical substances, as well as the manufacture of products using substances from unauthorized sources.

Regulations for Producers and Users of Chemical Substances

The Code stipulates legal obligations for both producers (including importers) and downstream users:

• For Producers and Importers: Enterprises must ensure compliance across all stages, from production to disposal. They are legally required to cooperate with pollution investigations by providing data on physicochemical properties, usage, and emissions. For new chemical substances, registration must be completed prior to activity; unauthorized production or import is strictly prohibited. Furthermore, if a substance is included in the “List of New Pollutants under Key Management,” the enterprise must adhere to specific bans or restrictions.
• For Downstream Users: The Code sets a clear “compliance baseline.” Users must comply with national regulations during storage, transport, sale, use, and disposal. Crucially, Article 651 explicitly prohibits the manufacture of products using new chemical substances produced or imported by entities lacking a valid registration certificate. This implies that downstream enterprises must audit the registration status of their upstream suppliers; failure to do so may result in legal liability.

Impact on Enterprises

These provisions have profound implications for business operations:

1. Expansion of the Compliance Chain: Responsibility now extends from the manufacturer to the user. Downstream users can no longer avoid liability by claiming “lack of knowledge” regarding a supplier’s registration status.
2. Mandatory Information Provision: Data reporting has been upgraded from a “cooperative” duty to a mandatory legal obligation. Enterprises must establish robust internal chemical ledgers.
3. Dynamic Compliance: The dynamic nature of the “Key New Pollutants List” means enterprises must continuously monitor regulatory changes; compliance is no longer a one-time event.
4. Pressure for Substitution: While the requirement to substitute hazardous chemicals is currently framed as an encouragement, when combined with prohibitive clauses, it creates substantial pressure to phase out high-risk substances.

Comparison with Existing Regulations

While the Code maintains continuity with previous measures, such as the “Measures for the Environmental Management Registration of New Chemical Substances” and the “List of New Pollutants under Key Management (2023 Edition),” it introduces significant enhancements:

• Full Lifecycle Scope: While previous regulations focused on production and import, Article 644 explicitly incorporates storage, transport, use, and disposal into the unified lifecycle management framework.
• Direct Liability for Users: Previously, regulations for downstream users were somewhat indirect. Article 651 now directly prohibits the use of unauthorized new chemical substances, establishing the user as an independent responsible entity.

Compliance Strategies for Enterprises

• Establish Internal Ledgers: Maintain comprehensive chemical records covering physicochemical properties, quantities, hazardous characteristics, and emissions to meet the requirements of Article 647.
• Supply Chain Audits: Implement compliance checks for suppliers, focusing on whether upstream entities hold valid New Chemical Substance Environmental Management Registration Certificates to avoid violating Article 651.
• Track Dynamic Lists: Establish a framework to track adjustments to the “List of New Pollutants under Key Management” to evaluate potential impacts on existing product lines.
• Integrate Lifecycle Management: Incorporate environmental compliance into every stage of the business process—from import and storage to sale and disposal.

The original text of the “Ecological Environment Code” is available at:
https://www.news.cn/politics/20260313/f2d746f769ee4cb9a97e2f8cfb15783e/c.html