[Regulatory Update] China's Ecological and Environmental Code Takes Effect on 15 August 2026 — fines of up to RMB 2 million for unregistered new chemical substances or breach of registration conditions

China's National People's Congress adopted the Ecological and Environmental Code of the People's Republic of China on 12 March 2026. The Code's date of entry into force is 15 August 2026, and Article 1242 provides that ten laws, including the Environmental Protection Law, are repealed at the same time. For new chemical substances, Article 650 establishes a registration system and requires producers and importers to apply to the State Council's ecology and environment authority for registration before production or import. Article 651 prohibits producing or importing new chemical substances without a registration certificate or in breach of its requirements, and prohibits making products with new chemical substances produced or imported by an entity that has no registration certificate. Articles 1206 and 1207 provide that violators are ordered to rectify and are fined RMB 200,000 to 1 million. If they refuse to rectify, the fine is RMB 1 million to 2 million, and they may also be ordered to restrict production or suspend production for rectification. In serious cases, with the approval of the competent people's government, they may be ordered to suspend business or be closed down, and a registration certificate may be revoked where the breach concerns its requirements.