When our firm performs due diligence on Chinese manufacturing
companies, one of the most important focal points is whether the
company has passed all relevant environmental impact assessments.
Many foreign investors are unaware that after a company has been
formally established in China with "manufacturing" in is
business scope, an environmental assessment process will usually
need to be completed before the company can start engaging in
manufacturing activities. In fact under Chinese law, an
environmental assessment must be completed for any kind of
construction project, whether it involves a building structure,
manufacturing process and machinery installation, as well as
changes thereto (e.g. with a new production line).
