China's environmental tax law came into force on 1 January 2018. It aims to encourage companies to reduce the amount of pollutants they discharge or pay a levy based on the environmental impact of their emissions. Our analysis indicates the new environmental tax will increase most metal producers' costs only slightly – even if the tax is more strictly enforced and collected. This is because most provinces have kept their tax rates similar to the previous discharge fee rates. In addition, many metal producers are now equipped with technology to reduce their emission levels, after coming under closer scrutiny from Chinese authorities in recent years.