BEIJING, Aug. 24 (Xinhua) -- China is tightening controls on chemicals, explosives and hazardous materials with a proposed new law on mandatory company self-supervision and emergency plans.

    All companies dealing with hazardous materials will have to implement inspections and draw up emergency plans, under the draft emergency response law.

    The draft, which was submitted on Friday to the Standing Committee of the National People's Congress (NPC) for a third hearing, defines emergencies as industrial accidents, natural disasters, and health and public security crisis.

    "Coal mines, construction sites, and work units who produce, deal with, transport, stockpile and use explosives, combustible and hazardous chemicals and radioactive material production should establish detailed emergency plans and launch inspections at sites where hazardous materials are produced and stored, so as to eliminate possible risks and avoid emergencies," the draft law said.

    The draft includes a new clause requiring the "harsh punishments, according to relevant laws, for the looting of properties during emergencies and for disrupting emergency response work".

    The first version of the draft law which was submitted in June 2006, included the provision that "news media that irregularly report the development and handling of emergencies without authorization, or release fraudulent reports will be fined from 50,000 yuan (6,250 US dollars) to 100,000 yuan, if the reports lead to serious consequences".

    The provision was cut from the draft when it was submitted to the NPC Standing Committee for the second reading in June this year after heated debate among lawmakers and the public, many of whom argued it could be misused by government bodies to stall the release of emergency information.

    The Law Committee of the NPC held that the draft law, after two rounds of discussion and revision, was fundamentally feasible and suggested it be put to a vote at the end of the weeklong legislative session.

    The decision to introduce such a law was made in May 2003, during the SARS outbreak, when the government's inexperience in dealing with the emerging crisis led to one of the country's most serious health hazards.

    "It was drawn up after we studied emergency management experiences in developed countries, including the United States, Russia, Germany, Italy, and Japan, and conducted studies around China," said Cao Kangtai, director of Legislative Affairs Office under the State Council, in June 2006 when the draft was submitted for first hearing.