(issued by the National Environmental Protection Agency, Ministry of Agriculture, State Development and Planning Commission and State Economic and Trade Commission on March 5, 1997)

In order to implement the Decision of the State Council on a Several of Issues Concerning Environmental Protection, practically strengthen environmental protection work of township enterprises, raise their capability of pollution control by a big margin, fundamentally change the deteriorating situation of environmental pollution and ecological damage caused by the township enterprises and realize sustainable development of township enterprises, the provisions are made as following:

1. The local people's governments at all levels shall pay high attention to the environmental protection of township enterprises. County magistrates and heads of township (town) are responsible for the environmental quality of their own regions and the environmental quality under their jurisdiction will be taken as the main content for checking on the work of main leaders of townships (towns). Within the county as a unit, the control of total quantity of pollutants discharge will be implemented, and the quantity of pollutants discharge by the township enterprises will be brought into the goal of controlling the total quantity of regional pollutants discharge. The local people's governments at all levels shall work out annual reduction programs of total quantity of main pollutants discharge by township enterprises and implement them at the enterprises, adopt effective measures to prevent the township enterprises from polluting and damaging the environment and protect and improve rural environmental quality. In 2000 all the township enterprises must steadily reach the standard of pollutants discharge. The local people's governments at all levels shall practically strengthen the environmental management of township enterprises, organize to work out programs of township environmental protection, make unified arrangement of township enterprises, provide classified guide to and rationally lay them out.

The township enterprises in the economic developed regions along the eastern coast shall annually reduce the total quantity of main pollutants discharge. The new township enterprises shall adopt advanced and suitable technology and equipment and develop industries and products without pollution or with least pollution.

The township enterprises in the economical underdeveloped central and western regions must reasonably develop and exploit natural resources. Introducing and constructing new production projects with heavy pollution are strictly prohibited.

Expediting technological innovation of enterprises so as to prevent environment pollution and ecological destruction.

2. Those enterprises which engage in following production items must be resolutely abrogated or closed down: the paper mill with the annual capacity of less than 5,000 tons, the tannery with the annual capacity of less than 30,000 pieces of cattlehide and the dye plant with the annual capacity of less than 500 tons, as well as those enterprises which use pit (steam bread coke, pile coke) and smooth furnace to coke, open jar and openly smelt sulphur, manger furnace (saddle furnace) to smelt lead and zinc, select gold through mixed mercuration (mercury grinding and smoothing), indigenous cyanidation (small cyanidation pool and cyanide soaking) and slot, hoop-shaped kiln to bake bricks and indigenous (egg) kiln to bake cement are ordered to abrogate by the people's government above the county level; those enterprises which use indigenous method to smelt arsenic and mercury, refine oil, bleach and dye, electroplate, produce pesticide and asbestos products, exploit radiant mineral resources and use various kinds of radioisotope products will be ordered to close down or stop their operation by the people's government above the county level. As for those enterprises which are not abrogated or not closed down according to the provision, the main leaders of relevant county, township (town) people's governments and enterprises will be investigated for their responsibilities.

Strictly forbid to illegally import, process and use solid waste material from abroad.

3. The township enterprises are strictly forbidden to build new production projects which must be cancelled or closed down by the provisions of state law and regulations and Article 2 of this provision.

The township enterprises are strictly forbidden to build projects such as papermaking with chemical pulp, small tannery, dyeing, brewing, eletroplating and heavy pollution chemical in the major control areas of water pollution of the Huaihe River, Liaohe River, Taihu Lake, Chaohu Lake and Dianchi Lake stipulated by the state; the new construction, expansion, rebuilding and technical innovation of the above production projects which conform with the state provisions must conform to the requirements of the regional programs of preventing water pollution, their pollutants are not allowed to breakthrough the control target of total quantity of local pollutants discharge. Their environmental impact statements (report forms) must be submitted to the competent administrative departments at the provincial level after they are approved by the local competent administrative departments. They shall strictly carry out the provision of "three simultaneities" simultaneously design environmental facilities and principal part of projects, building and putting them into operation. The environmental protection facilities which have not been checked or not conformed to the requirements after the checkup are not allowed to operate. After the establishment, the enterprise must steadily reach the standard of pollutants discharge.

While engaging in new construction, reconstruction and expansion of production projects which conform with the above state provisions outside the major control areas of water pollution, the organization to examine and approve the environmental impact statement (report form) must submit to the higher competent administrative department of environmental department to reexamine. The project which was checked and not approved cannot be built.

4. The competent environmental protection administrative department of the State Council with the relative departments announced the main industries and zones of pollution control of township enterprises in accordance with different regional development level and requirements. The local governments at all levels shall strengthen supervision and management of environmental protection of the township enterprises of above main industries and comprehensive control of the main zones, actually increase input into environmental protection and must order to control the enterprises in excess of standard of pollutant discharge with the limit time; the enterprises which have not economic and technical conditions to control pollution must suspend their operation or change their production within the limit time.

5. The development of township enterprises will be combined with the construction of small cities and towns, so as to make township enterprises being gradually concentrated in the regions, and the small township industrial areas will be built in a planned way. The township enterprises that severely pollute the environment will not be allowed to build in the residential areas of villages and towns and those which have already been built should adopt measures to close down, suspend, prohibit, reform and transfer their production.

While building small township industrial districts, their influence on district environment must be assessed, and measures to combine the scattered treatment with the concentrated control to facilitate the control of the total quantity of pollutants discharge shall be adopted. 

While working out township planning, the infrastructural construction and arrangement of concentrated control of township enterprises' pollution shall be considered.

6. The competent administrative departments of environmental protection at all levels and the relevant departments should strictly check the township enterprise projects which will cause pollution and damage environment. For those projects that their environmental impact statements (report forms) are not approved by the competent administrative department of environmental protection, the approval units of such projects shall not approve their construction, the land administrative department shall not approve the use of land, the mineral administrative department shall not issue mining license, industrial and commercial administrative department shall not handle business license and financial department shall not grant loans; for those construction projects that their environmental protection measures are not examined or after the examination they have not reached to the standard, the competent administrative department of environmental protection shall not allow such projects to put into operation, the electrical management department shall stop the supply of electricity and the financial department shall stop loans.

7. The local people's governments at all levels should practically strengthen the supervision and control of township enterprises and set up a law-enforcement contingent at county and town levels. The competent administrative department of environmental protection shall strengthen dynamics of law-enforcement, resolutely correct environmentally illegal activities and give punishment to those who violate the law and regulations of environmental protection. The special persons appointed by the management sectors of township enterprise at all levels are responsible for the work of environmental protection and administration and management.

The competent administrative departments of environmental protection at all levels shall set up the system of application, registration and environmental statistics of township enterprises according to the law, strengthen monitoring and administration of township enterprises' main pollution resources and do the work of collection, management and use of pollutant discharge fee paid by the township enterprises.

8. The state and local relevant departments shall give necessary supports in policy and finance for the exemplary engineerings of township enterprises to prevent pollution and help the township enterprises raise their capability to prevent and control pollution.

The financial department shall provide active supports support for the township enterprise projects of pollution control and ecological construction according to the relevant credit policy of the state environmental protection.

While working out planning for using foreign funds, a certain proportion shall be appropriated for environmental protection of township enterprises and help them enhance their environmental protection technical level.

The scientific research institutes, universities and colleges and technical service organs shall face township enterprises and help them resolve technical difficult problems in preventing pollution through the Spark Programme.

9. The township enterprises must strictly observe the law and regulations of environmental protection and protect farmland and ecological environment, specially strengthen the protection of water areas of drinking water resource, irrigation and breeding, cannot damage natural protection zones, cultural relics and historical sites. The ecological environment which has been damaged must be controlled and restored within the specified time. Those enterprises which have not fulfilled their tasks will suspend their operation or close down.

The township enterprises shall set up and perfect their internal management system, work out environmental protection plans, establish the responsible system of environmental protection and carry out the environmental protection as the main content of the enterprise management through the whole production process, push clean production, build and improve environmental protection facilities to ensure regular operation.

10. The local governments at all levels shall strengthen propaganda and education of environmental protection and enhance environmental awareness of cadres at all levels and the masses. The supervisory mechanism of the masses over the environmental protection work of township enterprises shall be set up and perfected and all kinds of actions of violating the law and regulations of environmental protection shall be prosecuted and exposed. The supervisory and management personnel of the local governments at all levels who neglect their duties, abuse their power or engage in malpractice for personal gains shall be given severe punishment according to the law.