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Chemical Explosion Underscores Need for Accelerated Reforms and More Stringent Supervision

China published the Comprehensive Management Plan on Safety of Hazardous Chemicals (危险化学品安全综合治理工作)(hereinafter “Management Plan”) for the next 3 years in 2016. On Jul 20, 2018, the Work Safety Committee (WSC) of the State Council issued a notice on accelerating safety management of hazardous chemicals. The plan to accelerate safety management on hazardous chemicals highlights 40 key goals. (Check the goal list).

On Jul 12th, 2018, a tragic explosion occurred in Hentech Technologies Limited in Sichuan province. The explosion killed 19 people and left 12 injured. Investigations showed that multiple serious violations of regulations/laws contributed to the accident including:

  • Site construction without permit

  • Safety facility uninstalled

  • Severely substandard safety management

  • Personnel in safety management and operation not qualified.

This recent incident undermines the progress and efforts made to realize China’s hazardous chemical safety management plans and also calls into question the competency of local authorities to effectively police chemical enterprise operating in their jurisdiction. Local government has also been the subject of criticism to the extent that State Council will be responsible for supervision and open the investigation to the public. Meanwhile, according to the Management Plan, a nationwide, public self-investigation which will scrutinize provinces /municipalities in the chemical industry is required to submit to the WSC of State Council before Aug 15th, 2018.

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