Chongqing - Businesses in Chongqing could face lower compliance costs and more flexible environmental inspections under new measures that ease minor-violation penalties, tailor pollution controls and speed up environmental approvals.
The measures were outlined at a November 6 policy briefing, where officials explained changes under China's Ecological and Environmental Code, which took effect on August 15, and discussed support for businesses pursuing greener operations.
A key part of the new approach is Chongqing's four-list system for environmental enforcement, which classifies cases eligible for exemptions, lighter or reduced penalties, or exemption from administrative enforcement measures.
Chen Jin, director of the Legal Affairs Division of Chongqing's Comprehensive Administrative Law Enforcement Corps for Ecology and Environment, said the system is designed to distinguish minor, correctable violations from serious environmental offenses.
For example, businesses that fail to complete certain environmental registration or record-keeping requirements may qualify for exemption from penalties if they correct the problem within specified periods and cause no environmental harm. Some first-time violations may also qualify for exemption if businesses meet the relevant conditions and promptly complete corrective measures.
"Environmental enforcement must have both strength and flexibility," Chen said, adding that authorities would maintain strict penalties for deliberate pollution, illegal discharges and repeated violations.
Since the beginning of 2026, Chongqing's environmental authorities have handled 161 cases without administrative penalties, imposed lighter penalties on 121 companies and helped 326 businesses restore their credit status, Chen said.
The city is also using environmental performance ratings to encourage cleaner production. Key industrial enterprises are classified into four grades, from A to D, according to factors including emissions, pollution control, energy use and transportation practices.
Chongqing Jiawei Brewery, an A-rated enterprise under Chongqing's environmental performance rating system, in Dadukou District, Chongqing. (Photo/Zheng Ran)
During periods of heavy air pollution, A-rated companies can independently arrange emission-reduction measures while maintaining normal production. B-rated businesses face fewer restrictions, while C- and D-rated companies may be required to reduce or suspend production.
The discussion also addressed the cost of upgrading environmental facilities. A representative from Chongqing Jiawei Brewery asked whether government funding was available to help businesses finance improvements needed to raise their environmental performance ratings.
The production facility of Chongqing Jiawei Brewery in Dadukou District, Chongqing. (Photo/Chongqing Jiawei Brewery)
Xu Liang, deputy director of the Chongqing Ecology and Environment Bureau's Atmospheric Environment Division, said central government funds for air pollution prevention and control support eligible projects, including boiler upgrades and industrial pollution treatment. Since 2019, Chongqing has received more than 2 billion yuan (about 30 million U.S. dollars) in central funding, supporting more than 800 projects, he said.
Workers conduct quality inspections at the production facility of Chongqing Jiawei Brewery in Dadukou District, Chongqing. (Photo/Chongqing Jiawei Brewery)
By the end of October, Chongqing had rated 215 companies at A or B level. The city also provides free technical guidance and environmental assessments to help businesses improve their ratings.
Another area of reform concerns environmental impact assessments, or EIAs, which evaluate the potential environmental effects of construction and industrial projects before they proceed.
Liu Ning, deputy director of the Dadukou District Ecology and Environment Bureau, said Chongqing had shortened the statutory approval period for relevant projects from 60 working days to 28, a reduction of about 53.3%.
Applications are now handled online without paper submissions, while feedback on revisions is consolidated into a single round to reduce repeated paperwork. For eligible projects entering industrial parks, coordination between regional planning assessments and individual project assessments can also reduce application materials by nearly 30%.
The measures reflect Chongqing's efforts to combine environmental protection with business support. Authorities said they would continue providing technical assistance and advance guidance while maintaining strict enforcement against serious environmental violations.
For businesses, the policy changes offer clearer compliance requirements, more predictable approval procedures, and incentives to invest in cleaner production.