Chinese Environmental law and its Impact on Foreign Investment-法搜-中国法律信息搜索网

　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 the state. Besides, China demands that technology introduced from abroad must be advanced and suitbale and must be favourable to environmental protection.