The increasing environmental protection and supervision in China will inevitably influence the development of high-pollution industries. Chemical raw materials and chemical products manufacture being a recognized high pollution industry, exploration of the effect of environmental regulation on its spatial distribution can promote the development of manufacturing industry and optimize ecological environment. Therefore, an econometric model was built in this article to analyze the relationship between environmental regulation and chemical raw materials and chemical products manufacture location in China, using provinciallevel panel data from 2003 to 2012. In order to keep the outcome stable, the pollution control investment and pollution emission per unit of output were separately used to measure the stringency of China's environmental regulation. Meanwhile, generalized least squares method, fixed effect, random effect and GMM model were separately adopted. It was found that environmental regulation has negative influence on Chemical raw materials and chemical products manufacture distribution in China.