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China Water Law Revision: What Foreign Founders Need to Know About Water Compliance
A recent legislative research visit to Bengbu highlights upcoming changes to China's Water Law. For foreign founders operating in China, understanding water-related compliance is essential. This article summarizes the key points from the official government report and offers practical guidance.
China Water Law Revision: What Foreign Founders Need to Know About Water Compliance
On October 26, a research team led by Cong Bin, Vice Chairman of the Constitution and Law Committee of the National People's Congress (NPC), visited Bengbu to conduct legislative research on the draft revision of the Water Law of the People's Republic of China. The team included Yang Heqing, Deputy Director of the Legislative Affairs Commission of the NPC Standing Committee; Liu Dongshun, Vice Minister of Water Resources; Zhang Li, Director of the Legislative Affairs Commission of the Anhui Provincial People's Congress; Zhang Qunbo, Director of the Anhui Provincial Department of Water Resources; Wang Bo, Director of the Bengbu Municipal People's Congress Standing Committee; Xu Weihong, Deputy Director; Zhang Ming, Vice Mayor; and Yang Feng, Director of the Huai River Water Resources Commission of the Ministry of Water Resources.
For foreign founders registering or operating a company in China, regulatory changes in water management can affect operations, especially in water-intensive industries. This article distills the key takeaways from the official report and provides practical guidance on what to watch for.
Key Points from the Legislative Research
The research team began at the Huai River Water Resources Commission's Exhibition Hall, where they reviewed physical exhibits and a digital sand table of the river basin, learning about the 75-year history of Huai River management and the achievements of the new era. At the Bengbu Gate Hub, they inspected the operation of the regulating sluice, ship lock, and the first fish passage on the main stream of the Huai River, and were briefed on hub scheduling and ecological protection, with a focus on its role in flood control, water resource scheduling, and ecological conservation.
At a symposium, the team listened to reports from provincial and municipal departments and exchanged views with department heads and NPC deputies on topics including protection, development, and conservation of water resources; water network construction and unified water resource scheduling; and management and protection of rivers, lakes, and shorelines. They solicited opinions and suggestions on the revision of the Water Law.
The research team emphasized that the revision of the Water Law is a major measure to practice the concept that "lucid waters and lush mountains are invaluable assets," to conform to the overall layout of water governance in the new era, and to improve the legal system for water governance. The core is to adjust the social relations arising from water resource utilization and water hazard prevention, as well as the relationships between power and responsibility, and between power and obligation, so as to truly govern and utilize water well.
They called for thoroughly implementing Xi Jinping Thought on Ecological Civilization, implementing the new decisions and deployments of the Party Central Committee and the State Council on the protection, rational development, utilization, and conservation of water resources, actively practicing the new era water governance approach, adhering to correct value guidance to solve water governance challenges, systematically improving the water governance institutional system, promoting the comprehensive and effective implementation of the revised Water Law, and consolidating the legal foundation for national water security.
Wang Bo stated that Bengbu will take this research as an opportunity to earnestly implement the requirements of the NPC Standing Committee and the Provincial People's Congress Standing Committee, implement the Ecological Environment Code of the People's Republic of China and the newly revised Water Law, safeguard the high-quality development of water ecological protection and water governance, and strive to transform the advantages of the people's congress system into governance effectiveness.
Practical Implications for Foreign Founders
While the revised Water Law is still in draft, the research visit signals upcoming changes that could affect businesses. Here are key areas foreign founders should monitor:
- Water resource compliance: If your business uses water intensively (e.g., manufacturing, food and beverage, textiles), you may face stricter requirements for water conservation, recycling, and reporting. Ensure you understand local water quota allocations and discharge standards.
- Water network and scheduling: The emphasis on unified water resource scheduling and water network construction may lead to changes in water allocation priorities. Businesses should stay informed about local water availability and potential restrictions.
- Ecological protection: The focus on river and lake shoreline management could impact companies located near water bodies. Verify that your site complies with buffer zone regulations and does not encroach on protected areas.
- Legal alignment: The revised Water Law will work alongside the Ecological Environment Code. Foreign founders should ensure their environmental impact assessments and permits are up to date and consider consulting local experts on compliance.
Additionally, the research team's visit to Bengbu highlights the city's role in water management. If you are considering setting up operations in Bengbu or the Huai River basin, pay attention to local water policies and infrastructure developments.
Staying Informed and Compliant
China's regulatory environment is evolving, and water law is no exception. Foreign founders should regularly review official announcements from the Ministry of Water Resources and local water bureaus. Engaging with local legal and environmental consultants can help navigate the complexities.
For assistance with company registration and ongoing compliance in China, including environmental and water-related permits, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.