In our globalized world the Chinese economic performance plays an inevitable role. This spectacular economic growth, however, was coupled with never before seen economic damages, such as deforestation, decrease in drinking water quality, desertification and eroding maritime areas. In China, the environmental protection has got publicity back in 1974 for the first time; although it was not until 2006 when the government incorporated this issue into the eleventh five-year plan. From this moment on, environmental protection is represented on the highest levels. Despite, however, of the numerous laws regulating the environmental pollution of companies, the government is often criticized because the implementation of environmental laws seems to be rather poorly executed. This particular situation has contributed to the creation of certain level of dissatisfaction among Chinese citizen. Present paper analyzes the available literature on the Chinese regulatory political background to a deep degree in hope of finding the reasons behind the presented controversial situation. It is found that authorities lack the means of enforcement while in the same time monitoring or supervisory system is not developed sufficiently.