China steps up oversight of environmental service agencies

China has stepped up efforts to combat data falsification by environmental monitoring and other technical service agencies, with five central authorities calling for stronger technology-enabled supervision, tougher enforcement and closer cross-department coordination.

The Supreme People's Court, Supreme People's Procuratorate, Ministry of Ecology and Environment, Ministry of Public Security and State Administration for Market Regulation recently issued a joint notice aimed at strengthening routine oversight of environmental technical service providers and regulating market order.

The move is also intended to support implementation of the Ecological and Environmental Code and regulations on ecological and environmental monitoring.

The notice calls for a problem-oriented approach, with greater use of technology and stronger controls at the source of data falsification. It also calls for long-term regulatory mechanisms and closer coordination among regions and government departments.

It stresses differentiated enforcement, calling for severe punishment of deliberate violations while providing guidance and assistance to entities involved in minor violations.

Authorities identified three priorities: expanding oversight across relevant sectors, intensifying investigation and enforcement, and using individual cases to drive broader rectification.

The notice outlines 11 measures covering the expansion of case leads, strengthening of case investigation, improved coordination, and refinement of regulatory and enforcement systems.

To identify potential misconduct at an early stage, authorities are required to make greater use of big data and artificial intelligence to detect abnormal data and improve early-warning mechanisms. The notice calls for more off-site and technology-enabled supervision, with suspicious findings to be followed up through on-site inspections when necessary.

Channels for complaints and reports will also be expanded. Authorities are encouraged to improve reward mechanisms and encourage insiders and members of the public to report suspected data falsification.

Enforcement will target not only technical service agencies and individuals directly involved in falsifying data, but also related upstream and downstream companies. The notice calls for accountability to be pursued across the entire chain of misconduct.

Institutions that have previously been punished will face follow-up reviews to ensure corrective measures have been implemented and prevent repeat violations. Major and complex cases may be subject to special supervision, handling by higher-level authorities or joint oversight, according to the notice.

The notice also calls for stronger joint inspections and case handling among departments, with technical service agencies included as key targets of cross-department random inspections. Authorities are required to improve regional law enforcement assistance and strengthen coordination between administrative enforcement and criminal justice, including mechanisms for information sharing and case transfers.

Credit management systems for technical service agencies will be developed, with differentiated supervision based on risk and compliance records, it said.

The notice calls for further study of the application of the Ecological and Environmental Code, regulations on ecological and environmental monitoring and relevant judicial interpretations to improve consistency in handling similar cases.

It also requires stricter market entry and exit rules, including tighter qualification and registration management for environmental monitoring and motor vehicle and vessel emissions testing. Rules barring individuals or institutions involved in data falsification from engaging in certain professional activities should also be further clarified.

In addition, the notice urges local authorities to standardize inspections involving businesses, strengthen legal education and compliance guidance, and encourage industry self-discipline.