Legal Regulation Of Multi-national Corporation’s Environmental Responsibility In China

While leading the world’s economy and getting huge profits, multinationalcompanies also poses a serious environmental pollution and destruction to the hostcountry. Most host countries are less developed countries, its inadequate legal systemand information disclosure mechanisms and ineffective regulatory mechanismsprovide multinational companies convenient to evade environment responsibility.With fast growing in China, multinational companies appear frequently on localenvironmental violations list, to China s environment and public safety caused greatharm. In order to protect our environment, regulate the behavior of multinationalcompanies in China, we must pay attention to multinational environmentalresponsibility.Automobile manufacturing industry is a typical representative of the pollution-intensive industry, multinational auto companies in China are also well-developed.However, due to the international legislation on environmental liability multinationallack of broad participation, the binding is not strong. Since lack of domesticlegislation on environmental responsibility of multinational auto companies, lawenforcement and supervision is not strong, thus multinational automotive companieswill cost a little in polluting environment in China. At present, there isno specific legislation on multinational companies’ environmental responsibility, andthere are few environmental regulations in bilateral investment treaties, betweenChina and other countries.America is a well-developed industrial countries, as so far it has been enacteddozens of environmental laws, thousands of environmental protection regulations, theperfect environmental legislation is worthy of study and learn. Meanwhile Americaincrease the special environmental terms by revising the U.S. BIT model, it alsoprovide a basis for the protection of domestic environment. There a lot ofmultinational companies in China, we can refer to instances of legislation in theUS, incorporated the environmental protection terms into bilateral investment treaties or free trade agreements, and ensure the enforceability of the terms of environmentalprotection through legislation, and strengthen cooperation with the internationalcommunity especially with home country of multi-national corporation, give full playto the positive environmental NGO role. Meanwhile China should improve domesticenvironmental legislation, especially for environmental liability legislation of thisparticular multinational economic entities to improve its illegal costs, strengthen lawenforcement, while establish environmental responsibility and environmentalmonitoring system the tax system.In addition to the legal oversight together withsocial supervision, multinational companies will behave well in China.