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Compilation of Chinese Standards

Social and environmental standards are intended to protect people and ecosystems from the negative impacts of investment projects. They may be reflected in policies, guidelines or systems that developers, investors and financiers adopt to prevent and mitigate the negative impacts of their business activities. They should be implemented during the entire project cycle, from identification, design and preparation, through development and operation, to the closure of a project.

Chinese companies and financiers often lack strong institutional policies to deal with social and environmental issues. However, this is gradually beginning to change. Chinese banks have adopted internal social and environmental policies. Chinese companies are increasingly making commitments to operate in a responsible manner when operating overseas, adopting their own policies and signing on to international principles and standards. Importantly, Chinese state institutions have recognized the need for improved social and environmental standards in overseas investments and in recent years have issued several policies for financiers and companies operating overseas.

The policies and guidelines adopted by the Chinese government to date often lack detail and none have enforcement or accountability mechanisms related to social and environmental responsibilities. However, they are becoming increasingly detailed and indicate ongoing high-level support for improving practices in overseas projects, and they can potentially be drawn on by communities seeking to protect their rights and the environment. This section covers some of the key state policies and administrative regulations that govern Chinese overseas investment, as well as social and environmental guidelines currently in place.

This compilation of Chinese standards draws together policies and guidelines relevant to overseas investment and finance issued by state institutions, industry associations, companies and banks. It is organized according to the types of projects each set of standards applies to. You can find discussion on specific documents and explanations of how they apply in Inclusive Development International’s online resource, How to Hold Chinese Corporations Accountable.

THE BELT AND ROAD INITIATIVE

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For an overview of the Belt and Road Initiative guiding documents, and articles related to environmental and social protections, see here.

Issuing Body

Title

Summary

Issuing Body

Title

Summary

National Development and Reform Commission, Ministry of Foreign Affairs & Ministry of Commerce (with State Council authorization)

Top-level vision document setting out key focal areas of the Belt and Road Initiative

Issuing Body

Title

Summary

National Development and Reform Commission & National Energy Administration

Document elaborating vision for strengthening energy cooperation in the Belt and Road Initiative.

Issuing Body

Title

Summary

Ministry of Agriculture, National Development and Reform Commission, Ministry of Commerce, Ministry of Foreign Affairs
Document elaborating vision for strengthening agriculture cooperation in the Belt and Road Initiative.

Issuing Body

Title

Summary

National Development and Reform Commission & State Oceanic Administration

Vision for Maritime Cooperation Under the Belt and Road Initiative (2017), English, Russian, Arabic, Spanish, German, French (NDRC [2017] #1026)

“一带一路”建设海上合作设想 (发改西部 [2017] 1026号)

Document elaborating vision for strengthening maritime cooperation in the Belt and Road Initiative.

Issuing Body

Title

Summary

Ministry of Environmental Protection, Ministry of Foreign Affairs, National Development and Reform Commission & Ministry of Commerce
General guidelines seeking to promote green development, strengthen eco-environment protection, and jointly build a green Belt and Road Initiative.

Issuing Body

Title

Summary

Ministry of Environmental Protection
Plan setting out principles seeking to serve, support and guarantee the Belt and Road development is environmentally friendly.

Issuing Body

Title

Summary

Finance Ministers of China and 26 other countries
Commitment to collaboratively support development of the Belt and Road and build long-term, stable, sustainable financing systems.

Issuing Body

Title

Summary

Ministry of Finance
A non-mandatory policy tool for assessing debt sustainability risks when mobilizing funds to finance Belt and Road cooperation, as an important reference for lending decisions.

Issuing Body

Title

Summary

National Development and Reform Commission, Ministry of Foreign Affairs, Ministry of Ecology and Environment & Ministry of Commerce
Opinion promoting green development of the Belt and Road Initiative, including management of environmental risks and ending new coal-fired power plants.

FOREIGN AID

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Issuing Body

Title

Summary

Issuing Body

Title

Summary

China International Development Cooperation Agency, Ministry of Foreign Affairs and Ministry of Commerce
Document setting out roles and responsibilities of various actors responsible for foreign aid planning, implementation and monitoring.

Issuing Body

Title

Summary

State Council
White paper on China’s vision for its international development cooperation in the coming years and the achievements between 2013-2018.

Issuing Body

Title

Summary

State Council

China’s Foreign Aid (2014)

中国的对外援助 (2014)

White paper on the status of China’s foreign aid.

Issuing Body

Title

Summary

State Council

China’s Foreign Aid (2011)

中国的对外援助 (2021)

White paper on the status of China’s foreign aid.

APPROVAL AND MONITORING OF OVERSEAS INVESTMENT

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Issuing Body

Title

Summary

Issuing Body

Title

Summary

Ministry of Commerce
Document defining which types of overseas projects require approval, which need filing with MOFCOM and which are forbidden.

Issuing Body

Title

Summary

National Development and Reform Commission
Document providing further detail on the process for approval and recording of overseas projects and the responsibilities of project owners.

Issuing Body

Title

Summary

National Development and Reform Commission, Ministry of Commerce, People’s Bank of China, Ministry of Foreign Affairs (promulgated by State Council)
Document providing more detailed guidance on the types of overseas projects that are to be “encouraged”, “limited” and “prohibited” by the state.

Issuing Body

Title

Summary

Ministry of Commerce and six other state institutions

Interim Measures for Recording and Pre-approval of Overseas Investment (MOFCOM, et.al., [2018] #24)

对外投资备案(核准)报告暂行办法 (商合发 [2018] 24号)

Document providing further detail on the process for approval and recording of overseas projects, and responsibilities of project owners.

Issuing Body

Title

Summary

National Development and Reform Commission, Ministry of Commerce and 26 other government institutions
Guidance stating that companies and banks will have detrimental behaviors recorded in their credit records (including legal violations).

Issuing Body

Title

Summary

National Development and Reform Commission, Ministry of Commerce and 26 other government institutions
Memorandum setting out measures for punishing untrustworthy entities and procedures for cross-department cooperation on maintaining a credit system. Includes labour rights violations, failure to fulfil corporate social responsibilities, protect environment or respect local customs as “detrimental behaviors.”

Issuing Body

Title

Summary

Ministry of Commerce
Procedures for implementation of the Interim Measures for Recording and Pre-approval of Overseas Investment (MOFCOM, et.al., [2018] #24).

Issuing Body

Title

Summary

Ministry of Commerce
Process for MOFCOM inspections of overseas projects, including checks on corporate environmental policies and implementation, safety, security and emergency management and fulfilment of reporting requirements, among others.

SOCIAL & ENVIRONMENTAL PROTECTION

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Issuing Body

Title

Summary

Ministry of Commerce & Ministry of Ecology and Environment
Joint guidelines calling for enterprises to integrate “green development” throughout the various stages of the overseas investment process, properly manage environmental risks and promote a green transition.

Issuing Body

Title

Summary

Ministry of Ecology and Environment & Ministry of Commerce
The most comprehensive state-issued environmental guideline regarding overseas projects. This is an updated version of Guidelines originally issued in 2013 and provides additional detail on environmental risk management throughout the project lifecycle, including specific provisions for high-risk sectors.

STATE-OWNED ENTERPRISES

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Issuing Body

Title

Summary

Issuing Body

Title

Summary

State-owned Assets Supervision and Administration Commission
Guidance requiring central state-owned enterprises to ensure overseas subsidiaries comply with laws and regulations of host countries, including those related to information disclosure, ensuring the rights of the employees, and avoiding labor disputes.

Issuing Body

Title

Summary

State-owned Assets Supervision and Administration Commission
Document setting out additional approval procedures and management measures for overseas investment by central state-owned enterprises.

The State-owned Assets Supervision and Administration Commission (SASAC) screens projects based on a “negative list,” including “prohibited” and “special supervision” categories.

Issuing Body

Title

Summary

State-owned Assets Supervision and Administration Commission
Guideline requiring central state-owned enterprises to regularly monitor their overseas subsidiaries’ compliance with host country and international laws and regulations.

THE FINANCIAL SECTOR

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Issuing Body

Title

Summary

Issuing Body

Title

Summary

China Banking Regulatory Commission
Guidelines aiming to improve banks’ due diligence, client compliance review and project assessment with respect to environmental and social issues, including overseas projects. The banking regulator has stated that these guidelines should be integrated into all banks’ loan processes.

Issuing Body

Title

Summary

China Banking Regulatory Commission
Notice stipulating that banks are required to complete and submit a Green Credit self-assessment before May 31st of each year. Key Performance Indicators are to be used in bank Green Credit self-assessment.

Issuing Body

Title

Summary

China Banking Association
Notice creating a system for China Banking Association to evaluate banks’ Green Credit self-assessment and maintain blacklist of poorly performing banks.

Issuing Body

Title

Summary

China Banking Regulatory Commission
Guidelines explicitly aimed at banks financing overseas projects, urging financial institutions to integrate environmental and social risk management into all stages of their involvement in overseas projects.

Issuing Body

Title

Summary

China Banking and Insurance Regulatory Commission
Guidelines building on the 2012 Green Credit Guidelines and various other documents, extending coverage of the green finance system to the insurance sector and strengthening the implementation of existing green finance policies.

INTERNATIONAL CONTRACTING

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Issuing Body

Title

Summary

Issuing Body

Title

Summary

State Council
Regulation primarily covering issues related to contracting, competition and labor recruitment. It also covers project safety and quality, as well as emergency response. Requires contractors to report quality or safety issues and emergency incidents.

Issuing Body

Title

Summary

Ministry of Commerce
Notice setting out which overseas contracting projects require approval (i.e. , those in countries without diplomatic relations with China, projects involving “multi-country interests” or major regional safety risks).

Issuing Body

Title

Summary

Ministry of Commerce

Notice on Strengthening the Reporting of Foreign Contracted Projects (MOFCOM [2021] #204)

关于加强对外承包工程项目报告工作的通知 (商办合函 [2021] 204号)

Notice requiring contractors to report to MOFCOM (or subnational supervising department) regarding emergencies or other significant incidents within 24 hours. Incidents include major accidents, protests, environmental emergencies and major public criticism.

Issuing Body

Title

Summary

Ministry of Commerce
Procedures for MOFCOM inspections of overseas projects, including checks on corporate environmental policies and implementation, safety, security and emergency management and fulfilment of reporting requirements, among others.

Issuing Body

Title

Summary

China International Contractors Association (CHINCA)
China International Contractors Association (CHINCA) system for building credit files for members, documenting both “good” and “bad” credit. Bad credit can result from issues including major quality issues or safety accidents, violations of local laws, and damage to the environment and ecosystems.

Issuing Body

Title

Summary

China International Contractors Association (CHINCA)
China International Contractors Association (CHINCA) system for maintaining list of recommended companies.

Issuing Body

Title

Summary

China International Contractors Association (CHINCA)
China International Contractors Association (CHINCA) for applying penalties to companies involved in quality or safety problems, accidents, failure to abide by laws and regulations and damage to the environment or harm to communities, among others.

Issuing Body

Title

Summary

China International Contractors Association (CHINCA)
China International Contractors Association (CHINCA) for annual company ranking and listing of companies recommended for overseas contracting. Assessment criteria include meeting environmental requirements and fulfilling social responsibility.

Issuing Body

Title

Summary

China International Contractors Association (CHINCA)
China International Contractors Association (CHINCA) system for evaluating companies’ credit rating.

Issuing Body

Title

Summary

China International Contractors Association (CHINCA)
China International Contractors Association (CHINCA) voluntary guideline covering issues including safety, employee rights, supply chain management, environmental protection and community engagement.

Issuing Body

Title

Summary

China International Contractors Association (CHINCA)
China International Contractors Association (CHINCA) voluntary guidelines encouraging Chinese companies to fund, plan, design, build and operate overseas infrastructure projects in a sustainable manner.

Issuing Body

Title

Summary

China International Contractors Association (CHINCA)

Operational Manual for the Guide on Social Responsibility for Chinese International Contractors (2018)

中国对外承包工程行业社会责任指引实施手册 (2018)

China International Contractors Association (CHINCA) voluntary manual guiding contractors on how to implement itssocial responsibility guidelines.

MINING & MINERALS

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Issuing Body

Title

Summary

Issuing Body

Title

Summary

China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters

Updated version of the 2015 Chinese Due Diligence Guidelines for Responsible Mineral Supply Chains (Chinese, English, French and Spanish), with further specification of the due diligence requirements for enterprise and  new requirements regarding remedy. 

Issuing Body

Title

Summary

China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters

Guidelines for Social Responsibility in Outbound Mining Investments (2017) English, Khmer

中国对外矿业投资社会责任指引 (2017)

Industry guidelines defining key principles of social responsibility, as well as minimum requirements related to issues including governance, human rights, environment and value chain management.

Issuing Body

Title

Summary

Responsible Cobalt Initiative & Responsible Minerals Initiative
Cobalt-specific industry standard building on the CCCMC due diligence guidelines.

AGRICULTURE & FORESTRY

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Issuing Body

Title

Summary

Issuing Body

Title

Summary

National People’s Congress
Law that includes a provision prohibiting individuals and companies from purchasing, manufacturing or transporting timber known to be from illegal logging sources overseas.

Issuing Body

Title

Summary

State Forestry Administration & Ministry of Commerce
Guidelines setting out basic requirements for Chinese enterprises to realize sustainable silviculture (tree plantations) overseas.

Issuing Body

Title

Summary

State Forestry Administration & Ministry of Commerce
Basic guidelines on management of overseas forest plantation projects.

Issuing Body

Title

Summary

China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters

Guidance for Sustainable Natural Rubber (2017) English, Khmer

可持续天然橡胶指南 (2017)

Industry guidelines providing a framework for companies to identify, prevent and mitigate risks, establish due diligence systems, and conduct effective monitoring and reporting on overseas rubber projects.

Issuing Body

Title

Summary

China Association for the Promotion of International Agricultural Cooperation and Research Center for Rural Economy

Industry guidelines providing instructions to companies with overseas agriculture-related investments. Includes guidance for establishing responsibility systems, selecting investment locations and projects, and building awareness of social responsibility.

COMPANY POLICIES

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Issuing Body

Title

Summary

Issuing Body

Title

Summary

Issuing Body

Title

Summary

Sinohydro Corporation
The company’s basic policy commitments, ethical operating principles and compliance program announcement. (Sinohydro has since merged with Powerchina, it is not clear if these policies are still in force.)

Issuing Body

Title

Summary

China Datang Corporation

China Datang Corporation Regulation on Environmental Protection (undated)

环境保护管理办法 (undated)

China Datang Corporation Regulation on Project Safety, Health and Environment (2009)

工程安全、健康与环境管理规定 (2009)

China Datang Corporation Handbook on Safety Risk Evaluation for Datang’s Hydropower Companies (2011)

水力发电企业 安全风险评估手册 (2011)

The company’s internal regulations on environmental protection and project health and safety, as well as the internal company handbook for evaluating risk in hydropower projects.

Issuing Body

Title

Summary

China Three Gorges Corporation
The company’s policy aimed at improving social, ethical, environmental, health and safety dimensions in its work.

Its ethical and compliance principles, covering issues including fraud and criminal conduct and anti-corruption.

Its policy covering employees, governance, society, consultation and complaints.

Issuing Body

Title

Summary

China International Water and Electric Corporation
The company’s ethical and compliance principles, including details of how to report compliance issues. (The company is a subsidiary of China Three Gorges Corp., so those policies also apply.)

Issuing Body

Title

Summary

China National Petroleum Corporation

The company’s guidelines covering quality, health, safety, environment, local communities and disclosure, among other things, which apply to CNPC employees, representatives and others doing work in the name of CNPC, and companies in which CNPC has a controlling share.

BANK & INVESTOR POLICIES

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Issuing Body

Title

Summary

Issuing Body

Title

Summary

China Development Bank
Manual describing history, strategic focus and basic principles of the bank.

Issuing Body

Title

Summary

Export-Import Bank of China (China Eximbank)
Basic guideline covering key issues across the project cycle, including environmental impact assessment. These guidelines are now dated and have likely since been replaced.

Issuing Body

Title

Summary

Export-Import Bank of China (China Eximbank)
White paper stating that the Bank has adopted internal green credit guidelines. Summarises the process of due diligence investigation, loan disbursement and payment verification, as well as management of environmental and social risks throughout the project cycle.

Issuing Body

Title

Summary

Bank of China Hong Kong
Bank policy applying to all member institutions. Commits members to promoting sustainable development of the environment and society.

Issuing Body

Title

Summary

China-ASEAN Investment Cooperation Fund (CAF)
Guidelines that all investee companies and investment projects of the CAF are required to accept and implement.

Issuing Body

Title

Summary

State Development & Investment Corporation
Framework developed to demonstrate how SDIC and its entities fund projects that will deliver environmental benefits to support SDIC’s business strategy and vision.