The most stringent environmental protection law can not afford to offend

On June 4th, Premier Li Keqiang emphasized at a State Council meeting the need for strict enforcement against environmental violations. He highlighted the use of the most stringent environmental protection laws to penalize and detain companies that break environmental regulations. This signals a major shift in China’s approach to pollution control. Earlier, 300 polluting companies across 12 industries were ordered to leave Beijing, marking a tough move against industrial pollution. The government is pushing for upgrades in these sectors to improve both quality and efficiency in environmental protection. Some companies faced fines as low as 300,000 yuan, which some see as just a small cost compared to the long-term consequences of non-compliance. One recent case involved a company fined 300,000 yuan for violating air pollution regulations, which is now considered the largest single penalty since the implementation of the new Environmental Protection Law. The fine was accompanied by detention, showing a serious stance from authorities. Zhang Boxu, director of the Beijing Economic and Information Commission, announced that painting was recently added to the list of 12 polluting industries. As a result, three paint companies in Beijing are already relocating to Tianjin or Hebei. While some businesses question their bad luck, others see this as a warning: "Kang Ma Wei" — a phrase meaning "kill the chicken to scare the monkey" — suggests that even one penalty can have a broader impact. Although the strictest environmental law is set to be fully implemented on January 1 next year, its influence is already being felt. Under the new rules, companies could face daily fines of up to 300,000 yuan. In addition to financial penalties, executives may also face administrative or even criminal detention. For paint companies, the message is clear: the cost of violating environmental regulations is too high to ignore. The legislative intent behind the law is to prevent pollution and force industries to modernize. The government is setting higher environmental standards and pushing for industrial transformation in key sectors. In Guangdong, many coated enterprises have expressed concerns about the new rules. Companies facing daily fines and detention are under pressure to adapt. The strictest environmental law in history is not just a warning — it's a reality that must be taken seriously. Paint is among the 12 polluting industries and is likely to be included in the official list soon. However, compared to the consequences of being forced out of Beijing or facing daily fines, the reason for inclusion is almost irrelevant. It’s expected that more paint companies in first- and second-tier cities will soon be required to relocate. The question now is: where should these companies go to align with national policies? At the same time, Premier Li Keqiang called for focusing on existing industrial bases and improving the efficiency of the petrochemical industry. He stressed the importance of scientific planning, safety, and environmental protection in industrial development. Combining the Prime Minister’s speech with statements from officials in Beijing, it’s clear that any paint company not located within a petrochemical park, or not a leading player in the industry, may soon be asked to leave the city. Many companies in Guangdong have already moved to other regions, following past trends of industrial relocation. For the 12 polluting industries, the message is clear: those who fail to upgrade or shut down risk being left behind. As petrochemical parks become more regulated and land becomes scarce, new projects face delays due to strict environmental requirements. This makes it harder for polluting companies to expand or relocate. The 300 companies leaving Beijing and the 300,000-yuan fine are just the beginning. The real challenge lies ahead, with daily penalties and stricter enforcement on the horizon. It’s no longer just about avoiding fines — it’s about surviving in a new regulatory landscape.

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