International companies with seemingly sterling environmental credentials are being caught off guard as China rapidly tightens its green regulations. Some have been hit with fines or orders to shut down, forcing them to either retreat or spend heavily on upgrades. “China now has the toughest emissions standards in the world,” said an official of Japan’s Toppan Printing. Toppan is not the only major player to find itself in hot water in China. Plants or affiliated companies of Toyota Motor, Asahi Kasei, Daikin Industries and Mitsui Chemicals have been fined or ordered to suspend operations. China began tightening its environmental regulations in January 2015, overhauling its environmental protection law for the first time in about 25 years in the face of alarming air pollution. The new law was designed to give the government a larger role in protecting the environment, with the government now required to draft mandatory emission standards. The new law has also removed a cap on how much noncompliant companies can be fined.

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Nikkei Asian Review