Beware: the relocation of chemical companies is yet another instance of a harmful transfer

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Background: The ’8·12’ explosion at Tianjin Port caused severe casualties, economic losses, and social impacts, once again bringing to the forefront the dilemma of being surrounded by chemical industries that cities in China face in terms of their development. According to officials from the Ministry of Industry and Information Technology, following the explosion in Tianjin, various provinces submitted plans for relocation and renovation projects; approximately a thousand chemical enterprises across the country need to be relocated or renovated. In fact, in recent years, some chemical industrial parks in our country have faced the necessity of being relocated and renovated due to issues such as aging infrastructure, severe environmental pollution, and prominent safety hazards. How to relocate, and how to renovate? How to avoid large-scale migration of hazards and pollution? It is worth reflecting on how future new chemical industrial parks can avoid repeating the same mistakes. I. Significant safety issues exist in China’s chemical parks. With urban development, an increasing population, and expanding city sizes, the chemical parks established after the reform and opening up, which focus on high-risk industries such as petrochemicals and chemicals, are becoming sources of danger to urban safety. 1. The mixed layout of chemical plants and residential areas: As urbanization progresses in China, cities continue to expand outward, and many industrial areas that were located on the peripheries of cities in the 1980s and 1990s have gradually been surrounded by the city. At present, many chemical plants in our country are located alongside residential areas, and these areas are known as “chemical **”. Nanjing Jinling Petrochemical is about 200 meters away from the nearest residential area ； Qingdao Lidong Chemical is about 600 meters away from the nearest residential areas ； At Ningbo Zhenhai Refining & Chemical Complex, the residential areas with a population of over 20,000 people are located just 200 to 300 meters away… According to the results of the \"Comprehensive Assessment of Environmental Risks in China’s Chemical and Petrochemical Projects,\" out of 7,555 such projects with a total investment of around 1 trillion yuan, 81% are situated in environmentally sensitive areas such as rivers and watersheds as well as densely populated regions, and 45% of them represent major sources of risk. 2 The hidden dangers of underground pipelines are like \"landmines\". The layout of a chemical industrial park refers not only to the spatial arrangement of surface-based industrial production elements, production activities, and production organizations, but also to the construction of underground infrastructure. However, the tendency in our country’s chemical industry development to prioritize surface activities over underground ones has become a persistent problem. In recent years, across the country, there have been an average of 5.6 underground pipeline incidents reported in the media each day. In milder cases, these incidents result in water, gas, and electricity outages as well as disruptions to communication services; in more severe cases, they lead to leaks of hazardous gases and gas explosions, causing casualties. In addition, 80% of the gas pipelines are occupied, leading to overloaded pipelines as well as a lack of maintenance and supervision. There are also issues such as the ineffective safe disposal of industrial waste pipes; underground pipelines are thus becoming \"landmines\" hidden beneath chemical industrial parks, posing serious safety risks. For example, the \"11·22\" Qingdao accident in 2013 was caused by a leak of crude oil from an oil pipeline; the oil seeped into the underground municipal drainage system, which ultimately led to an explosion. II. Analysis of the reasons why chemical parks in our country are in trouble. A rational layout for chemical parks should be people-oriented, following the principle of \"functional division and zoning\" to avoid safety hazards such as the coexistence of residential and industrial areas. However, in many industrial parks in our country, due to oversights in urban planning and biased governance approaches, an unreasonable layout of chemical industries has become the \"first gateway to danger.\" 1. The chaotic layout of heavy and chemical industries reflects the worship of “GDP”. Over the past decade, heavy and chemical industries have become an important means for various regions to drive economic growth. For reasons related to fiscal revenue and performance evaluations, local authorities are inclined to develop heavy and chemical industries that generate high output values and substantial tax revenues, a trend that is particularly evident in coastal provinces such as Guangxi, Guangdong, Jiangsu, and Liaoning. If a project with an annual steel production capacity of 10 million tons is launched in the eastern coastal areas, it will generate an additional annual industrial output value of 52 billion yuan once it is put into operation. More importantly, it will generate a significant multiplier effect of 1.5 to 5 times, driving the development of nearly 200 related industries such as infrastructure construction, upstream and downstream industries, and productive service sectors. Therefore, under the influence of GDP worship, some places **know full well that there is no suitable land for developing heavy industry, but still proceed with such projects despite the negative impacts on the local environment and the safety of residents.** In Dalian alone, the petrochemical industrial parks include Shuangdao Bay Petrochemical Industrial Park, Dagushan Peninsula Petrochemical Area, Songmudao Chemical Industrial Park, and Changxing Island Fine Chemicals Park, among others. 2. The content of planning can be altered arbitrarily, making it susceptible to influence from interest groups. As a roadmap for guiding the healthy development of chemical industrial parks over the coming period, urban planning determines the scale of construction in these parks. However, the content of urban planning in our country is frequently changed, showing a high degree of arbitrariness. In Haicang District, where the Xiamen PX (p-xylene) chemical project is located, it was designated as a petrochemical zone for Taiwanese investment as early as 1989, and it already hosts heavily polluting enterprises such as polyester fiber manufacturers and thermal power plants. However, in the Xiamen City Master Plan (2004–2020), southern Haicang is designated as an \"urban sub-center,\" serving as a comprehensive service center for various functional zones. The reach of urbanization is beginning to extend to chemical industrial zones that were not originally meant for residential use, and arbitrary changes in urban planning have also occurred in cities such as Shanghai, Nanjing, and Anqing. The reason for this is related to the fact that planning changes in line with the arrival or departure of those in charge, as well as the bargaining among various interest groups. Ultimately, the planning content is susceptible to market forces; it makes concessions when necessary, showing great \"flexibility,\" and thus loses its intended authority and seriousness. 3. The enforcement of regulations is insufficient, with multiple stages functioning as mere formalities. In industrial zones where high-risk industries such as petrochemicals, metallurgy, and coal mining are the dominant sectors, standard procedures must be in place and strictly followed for every stage of major projects, including planning, approval, construction, inspection, and commissioning. And the current problem is: first, most planning environmental impact assessments are of the "**" type. For projects with potential environmental risks, planning environmental impact assessments can ensure the safety and sustainable development of the park; therefore, an environmental impact assessment should be conducted first before such projects are launched. The controversial Dalian Fujia Dahuaxia plant in 2011 underwent an environmental impact assessment only after it began operations. Second is insufficient investment in the later stages. Although new petrochemical plants abroad are often built near residential areas, since the investments in environmental protection and subsequent remediation measures account for 2/3 of the total investment, the negative impact on the environment is minimized, and the effect on residents is also minimal. In Zhenhai, Ningbo, China, in 2012, even with the strictest emission standards in place, environmental protection-related investments accounted for only 6.4% of the total investment amount. Third, the level of supervision is insufficient. At present, chemical projects in our country are approved, initiated, and supervised by multiple departments such as the Marine Bureau and the Environmental Protection Bureau. With nine dragons managing the water, the result is that no one is in charge of it, and no one takes responsibility. 4. Lack of legal and regulatory safeguards, and inadequate accountability for officials: The relevant laws, regulations, and standard guidelines have not been issued in a timely manner, which prevents proper planning of chemical industrial parks. First, law-making is relatively lagging behind. China’s current Urban and Rural Planning Law was revised in 2007, and it contains little information regarding the rules for site selection of construction projects. Japan enacted the Plant Layout Act as early as 1959, which stipulates strict restrictions on the location of factories, emphasizing that the environment and the safety of local residents must be protected first. At the same time, Japan also has quite strict regulations regarding the management of underground pipelines; for chemical gases such as propylene, seven laws and regulations govern everything from their management to transportation. Second, there is a lack of the public’s right to know and right to participate. The planning concepts and functional layout of chemical industrial parks are closely related to the safety and health of the residents living in the surrounding area. However, the public lacks any real say in the planning and development of these parks; even when they do participate, it is in a nominal capacity, usually by agreeing to occasional interviews or filling out a few questionnaires, the results of which lack credibility and validity. Third, there is a lack of a strict accountability mechanism. Regarding some major chemical projects that may not meet environmental assessment or **safety requirements, once these situations become a fact, the relevant authorities merely impose fines; the determination of responsibilities is also rather vague. As a result, such \"low-cost violations\" continue to increase, companies act with impunity, and **the credibility of these authorities declines. III. Strategic recommendations for the planning and development of future new chemical industrial parks. To build future new chemical industrial parks successfully, it is essential to prioritize planning and ensure a rational layout, in order to avoid repeating the mistakes made during the relocation and renovation of old chemical industrial parks. 1. Rational planning: moving away from the GDP-only approach. Currently, the \"Notice on Improving the Assessment System for Local Party and Government Leadership Teams and Their Leaders\" has been issued; its core objective is to reduce the emphasis on GDP and shift towards green GDP. Under this new framework, the development of the industrial economy will take greater account of environmental sustainability as well as the safety of people’s lives and property. First, at the **level, strengthen macro-guidance and optimize the layout of chemical industrial parks. In particular, it is necessary to strengthen the holistic approach to the layout of coastal heavy chemical industries by fostering a “nationwide coordinated approach” mindset, thereby enhancing the coordination and rationality of the development of these industries in various coastal provinces and municipalities at present. Prevent phenomena such as blind imitation across regions, unchecked expansion, excessive and scattered distribution, and unregulated development. Second, at the regional level, it is necessary to select appropriate leading industries for the industrial parks and develop distinctive industrial park models. Each region can take advantage of its own geographical location, resource endowments, industrial strengths, and technological advantages to identify key areas for progress, and develop appropriately emerging industries that are knowledge- and technology-intensive, require less use of physical resources, and have great potential for growth. 2. Scientific planning to ensure sustainable development: First, achieve a scientific location selection for the park. Strictly adhere to the **standards for safety protection distances**. Chemical transport routes should, as much as possible, avoid sensitive areas such as densely populated regions and water source protection zones, thereby minimizing potential safety and environmental hazards ； The location of industrial parks should be determined in consideration of the city’s future development prospects, to avoid situations where chemical parks built in remote areas end up being included within the expanded city boundaries after a few years. Second, high-risk enterprises should be located following a park-based approach. We can draw inspiration from Japan’s development model, in which heavy and chemical industries are primarily concentrated in the Kansai region centered around Osaka and Kobe, as well as in the eastern region centered around Tokyo. In China, high-risk enterprises should also adopt a development model characterized by industrial parks and clustering. Enterprises within these parks can share environmental protection facilities such as wastewater treatment systems, along with other public utilities; meanwhile, the parks themselves must exercise timely supervision and control over the enterprises operating there. Third, maintain the continuity of the park’s planning. In recent years, a series of large-scale demolition and construction projects have emerged in urban development, indicating that the approach to urban development is undergoing changes. Elements such as location, functions, and spatial scope involved in park planning are highly susceptible to change due to shifts in urban development strategies and city positioning, making it particularly difficult to maintain the seriousness and consistency of park planning. 3. Strict implementation and enhanced supervision. First, strictly enforce the environmental impact assessment system. When attracting investment, local authorities should exercise strict scrutiny on projects that pose serious environmental pollution risks and significant safety hazards; they must conduct proper environmental impact and risk assessments, and make this information publicly available in a timely manner to enhance the transparency of decision-making. Secondly, increase subsequent investments in environmental protection, safety, etc. In chemical industrial parks, prevention and control measures should be stringent rather than insufficient; for example, Korean companies have established safety management standards that are 6 times higher than the required levels, and they employ treatment methods for harmful gases that are 10 times more effective. Once again, establish a multi-departmental coordination mechanism. Strictly regulate key processes such as project approval, design review, safety assessment, and final acceptance; strengthen the inspection and supervision mechanisms among various departments to plug any potential loopholes in the safety management of chemical industrial parks. 4. Strengthen legislation to clarify **rights and responsibilities**. The safety planning of chemical industrial parks requires strong constraints and promotion from laws and regulations. First, relevant regulations should be promulgated in a timely manner. Japan’s experience can be drawn upon to regulate factory locations through legislation. Second, it is necessary to clarify the public’s right to be informed and to participate. Improve the decision-making procedures, hearing mechanisms, and arbitration systems for large petrochemical projects involving public interests, and strictly supervise their implementation. Third, establish and improve a strict accountability mechanism. It clearly stipulates the division of responsibilities among administrative organs and personnel involved in project construction, types of accountability, and procedures for enforcing accountability. Only in this way can we prevent such tragedies from happening repeatedly.