How China and Canada Differ on Mining Oversight. Why Overseas Footprints Look Similar

China and Canada sit on opposite ends of the mining regulation spectrum. Canada’s system is known for being tough and transparent. China’s is fast-moving, centralized, and often less strict in practice. But when both countries mine abroad, the gap isn’t as wide as many think.

To learn more, check out the in-depth article by Lark Scientific researcher Denis Koshelev, Navigating the Green Divide: Environmental Regulation in Canadian Mining — A Comparison with China.

China’s Evolving Rules at Home

China’s mining regulations have changed rapidly over the last decade.

• Since 2018, companies can prepare their own Environmental Impact Assessment (EIA) forms if they’re deemed “fully capable.”

• A restoration fund system lets companies decide how to use funds for site restoration, as long as they follow approved plans.

• Penalties for non-compliance can include fines, production limits, blacklisting, and even criminal charges for severe pollution incidents.

  
  

In 2025, China is rolling out a revised Mineral Resources Law with new ecological restoration requirements. Rare earth mining faces stricter standards, too, which could influence global prices.

Despite this, enforcement can be inconsistent, especially at the local level.

The Shadow of Corruption

A big challenge for China’s mining sector is corruption. Bribery, kickbacks, and opaque contract terms distort costs and undermine environmental oversight. There are no clear appeals for licensing decisions, making the system vulnerable to abuse. The lack of transparency affects both local communities and global supply chains.

Similar Issues Overseas 

Here’s where things get interesting.

• China’s “Going Global Strategy” and the Belt and Road Initiative pushed forward overseas mining investments, often in areas with weaker oversight and governance.

• Environmental guidelines for overseas operations do exist, but are mostly not binding.

  
  

Canada, meanwhile, sets high expectations for companies abroad but doesn’t actually enforce them most of the time.

• Canadian companies are encouraged to follow international standards and responsible business conduct.

• Yet, enforcement is weak. There’s an ombudsperson, but no real legal power behind expectations.

• So, Canadian companies abroad often operate under the host country’s weaker rules.

  
  

In practice, both China and Canada end up with overseas operations that don’t match with their domestic regulatory standards.

A Converging Story

Canada and China look like regulatory opposites at home, but overseas, the gap narrows. Both grapple with how to ensure environmental responsibility beyond their borders.

As demand for critical minerals grows, their approaches shape not only global markets but also the health of communities and ecosystems worldwide.