Crude oil and petroleum-based products have been used and shipped worldwide in large supertanker ships by international companies. Accidents happen and massive amounts of crude oil or refined crude oil product have caused serious pollution the coastal regions in different places around the world. When a large spill occurs, the company that owns the ship is legally liable and must pay for cleaning the spilled area. This study addresses the problems China is facing with adapting international conventions regarding oil spill compensation funds. China lacks appropriate laws for oil spill compensation. If a large scale incident occurred, China lacks standardized laws to address environmental effects to multiple provinces. The different laws regarding oil spill compensation must cooperate with international conventions and domestic regulations to ensure rapid response after an incident that affects Chinese coastline and sea water. Pollution is currently a big issue for China. Without changes in the oil spill compensation laws, polluted coastal regions would have difficulty securing the funds for containment and environmental restoration.