On July 29th, China State Council issued Interim Measures on Manufacturing Enterprises Blacklist to record and accordingly sanction enterprises found in violation of production safety standards.
According to the Measures, local authorities responsible for safe production will gather and verify the safe production documentation and protocols of local manufacturing enterprises. Enterprises meeting any of the following qualification criteria will be recorded into the “blacklist”:
Enterprises that had major production safety accidents or had accidents in which more than 10 people were killed within a year.
Enterprises that conceal or deliberately manipulate information about accidents and occupational diseases, or destroy the accident site or evidence.
Enterprises that have major production safety risks and fail to improve after the competent authorities ordered them to rectify.
Enterprises whose production safety licenses were suspended or withdrawn.
Enterprises that violated other regulations on production safety and occupational diseases prevention and control.
Once in the blacklist, the enterprises will still have a chance to appeal. Enterprises in the blacklist will be subject to sanctions including:
Suspension on approval of new projects
Suspension on approval of land use,
Suspension of stock market financing
Suspension of preferential tax policies
For blacklisted enterprises a single offence will see an enterprise subjected to sanctions lasting one year while a second offence will extend the duration of sanctions for up to 3 years.
