1. Chinese Legal Framework Regulating Environmental Protection of Foreign Investment
Chinese law regulating environmental protection of foreign investment doesn't take a uniform legislation form, but is a legal system mutually integrated by all kinds of special statutes and relevant separate laws and regulations. The grade structure of this legal framework is essentially as follows:
1.1 Constitutional Provisions Chinese constitution stipulates that the state protects and improves both the environment in which people live and the ecological environment; It prevent and controls pollution and other public hazards. Meanwhile Constitution require that foreign businessman investing in china shall abide by Chinese laws. These provisions are the supreme legal ground that China regulates environment protection of foreign investment.
1.2 State's Specially Separate Legislation Laws of this level includes three parts : First, environmental laws and regulations, such as Environmental Protection Law, Marine Environmental Protection Law, Law on the Prevention and Control of Solid Waste Pollution to the Environment, Interim Provisions Governing the Environment in Economy Open to Outside region, Interim Provisions Governing the Environmental Protection in Related to Imported Wastes and it Supplementary Provisions, etc. Second, laws and regulations on foreign investment, for example ,Law on Foreign Capital Enterprises,Law on Chinese –Foreign Contractual Joint ventures, Foreign Economy Contract Law, Foreign Trade Law, Interim Provisions for the Guidance of Foreign Businessman in their Orientation of Investment and A guiding list of Industies for Investment by ForeignBusinessman, and so on. Just other relevant laws and regulations, such as , Criminal Law ,General Principles of Civil Law, Civil Procedure Law, and so forth.
1.3 Local Statutes. Many local statutes contain the contents on the coordination between environmental protection and utilization of foreign capital, such as, Regulation of Shanghai Municipality for Environmental Protection, Regulation of Sichuan Province on Encouraged Foreign Investment Provisns of Xiamen Special Economic Zone on Introduction of Technology , Regulation of Ningbo Economic and Technological Development Zone, so on and so forth.
In addition, China has also alleged to and concluded many international conventions and international legal documents for environmental protection, such as the Rio De Janeiro Declaration, the Barcel convention and UN's Law of the Sea Convention. Their provisions about foreign investment are implemented by Chinese domestic legislation.
2. Chinese Environment Law's Impact On Foreign Investment
2.1 Its Impact on the Domain of Investment(or Orientation of investment)
Under the guidance of the national economic and social development strategy, China on the basis of the provisions environment laws, foreign investment laws and other relevant laws, divides projects of foreign investment into four categories: ”encouraged”, “Permitted”, “Restricted”, ”Ppohibitted”.
2.1.1 Group “Encouraged” China encouraged foreign businessman to invest in projects of new technology and new equipment which can comprehensively utilize resources and renewable resources and which can prevent and control pollution to the environment. For the end, China from 1 January, has exempted customs duty and importing Value Added Tax on most of imported equipment , which are introduced to China, with the aid of foreign loan, in order to protect environment.
2.1.2 Group “Restricted” China restricts projects of foreign investment on exploration and mining of rare and precious mineral resources and other projects which may prejudice environment or cause pollution. Importing solid waste capable of using as raw material is also restricted by
