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Enterprises Warned to Protect Environment Amid Industry Shift
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More attention should be paid during the transfer of chemical industries from the south to the north of Jiangsu Province to avoid further pollution, local environmental authorities have warned.

East China's Jiangsu Province, which is troubled by a widening GDP disparity between its southern economic hubs such as Suzhou and Wuxi and its relatively impoverished northern parts, has been promoting an industry shift in recent years.

Of the 200-plus enterprises moving north in the past two years, up to 50 percent are textile and chemical industries, statistics from Jiangsu Provincial Development and Reform Commission (JDRC) show.

The province in 2003 designated that chemical enterprises should pass certain environment tests before settling down in the north.

But a recent check by JDRC and Jiangsu Provincial Environment Protection Bureau (JEPB) on 57 newly established chemical enterprises in the north indicated that the situation is far from satisfactory.

"Driven by high economic revenues, some local governments lower their thresholds on these enterprises. In addition, management of hazardous waste in these cities is not up to scratch," said a report jointly released by JEPB and JDRC at the beginning of this month.

For example, it was reported that the chemical industry park in Yancheng, a city in north Jiangsu, has already damaged the ecology of the surrounding area, threatening the birds in Yancheng National Rare Birds Nature Reserve.

To improve the situation, relevant provincial authorities have vowed to issue stricter rules to reduce chemical discharges, by 25 percent in 2010.

They are also urging enterprises to update technology and product mix to minimize environmental impact, according to Zhu Tiejun, deputy director of JEPB.

North Jiangsu is not alone in risking becoming a victim of chemical enterprises from other economic hubs during the ongoing national industry shift, said experts.

According to Shen Tiyan, researcher with Chinese Regional Economics Research Center and an associate professor with Peking University, heavily polluting chemical industries, as well as other labor-intensive and resource-consuming industries, can no longer afford to operate in developed regions due to rising production costs and environmental requirements.

"Naturally they choose to transfer to places like north Jiangsu, where there are lower costs and environmental requirements," said Shen.

According to Shen, local governments should draft proper urban planning regulations to separate polluting industries from other areas, and adopt a circular economy within industrial parks to reduce the harm done to the environment.

(China Daily June 5, 2006)

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