The paper analyzes the closing gap between regulation and enforcement of environmental protection in China and explores its implications for doing business there. He identifies three main aspects that characterize the changes in regulatory systems: priorities and incentives, bureaucratic coordination, as well as transparency and control. Using these dimensions, it describes the mechanisms that characterized the previous period in China, where environmental authorities has been separated from regulation. Regulation and enforcement are relined. This is due to changes in the national development strategy, the reorganization of the bureaucracy, and increasing the control of the Government and the general public. To address these changes, firms must embrace environmental innovation and integration of local and global standards. They should also be more transparent and compete on reputation. "Hide
by Christopher Marquis Source: California Management Review 25 pages. Publication Date: November 11, 2011. Prod. #: CMR493-PDF-ENG
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