VZCZCXRO0924
RR RUEHCN RUEHGH RUEHHM RUEHLN RUEHMA RUEHPB RUEHPOD RUEHVC
DE RUEHGZ #0620/01 1510825
ZNR UUUUU ZZH
R 310825Z MAY 07
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC 6097
INFO RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RUEHOO/CHINA POSTS COLLECTIVE
RUEAEPA/HQ EPA WASHDC
RUEAIIA/CIA WASHDC
RUEKJCS/DIA WASHDC
RHHMUNA/HQ USPACOM HONOLULU HI

UNCLAS SECTION 01 OF 02 GUANGZHOU 000620 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
STATE FOR EAP/CM AND OES/PCI 
EPA FOR OFFICE OF INTERNATIONAL AFFAIRS 
PACOM FOR FPA 
 
E.O. 12958: N/A 
TAGS: SENV PHUM ECON PGOV CH
SUBJECT: Xiamen Government Suspends Chemical Project After Public 
Outcry 
 
 
(U) This document is sensitive but unclassified.  Please protect 
accordingly. 
 
¶1. (U) SUMMARY:  The Xiamen government suspended, but did not 
cancel, plans for the construction of a large chemical plant near 
the city center after residents planned a large protest and the 
story was covered by the mainland and Hong Kong media.  The 
Taiwan-invested paraxylene plant, which the Xiamen government had 
been actively pushing, would have almost doubled the city's GDP and 
increased its tax base significantly and was supported by the city's 
party chief.  Citizens opposed to the project, led by a Xiamen 
University professor, claimed city leaders approved the deal for 
political reasons without considering environmental risks.  This is 
yet another example - though on a different matter - of increased 
activism among residents in South China and of their ability to get 
authorities to reconsider programs and projects.  END SUMMARY. 
 
A Large Investment and Government Support 
----------------------------------------- 
 
¶2. (U) Investors in the chemical plant worth RMB 10.8 billion (USD 
1.4 billion) had already received municipal and central approval and 
were planning to begin construction soon in a location seven 
kilometers from Xiamen's city center, according to media reports. 
The plant would have produced 800,000 tons of paraxylene (PX) 
annually upon completion in December 2008 and would bring RMB 80 
billion (USD 10.4 billion) in annual GDP to Xiamen - almost doubling 
its current GDP.  According to Hong Kong and mainland media, Xiamen 
Party Secretary He Lifeng has been a strong supporter of the 
project.  The lead investor in the project is Taiwan businessman 
Chen Yu-hao, whose company Tenglong already owns an adjacent 
chemical factory.  Chen is reportedly wanted by Taiwan authorities 
for embezzlement. 
 
Opposition to the Plant's Location 
---------------------------------- 
 
¶3. (U) The PX factory was planned for a location 1.5 kilometers from 
the nearest residential area and seven kilometers from the city 
center.  According to press reports, PX plants in China are on 
average 20 kilometers from residential areas (which is closer than 
many other countries allow).  PX, which is widely used in plastics 
and paints, is carcinogenic and symptoms of exposure include 
breathing problems and liver and kidney damage.  Opposition to the 
project has been led by Zhao Yufen, a Xiamen University chemistry 
professor and academician with the China Academy of Sciences (CAS). 
In March this year, Zhao submitted a petition with 104 other 
signatories (including five other CAS academics) to the 
national-level People's Political Consultative Conference requesting 
the project be relocated at least 100 kilometers from the nearest 
urban area.  The petition did not, at the time, result in any 
government action. 
 
Planned Protest Leads to Suspension 
----------------------------------- 
 
¶4. (U) After Xiamen residents planned a public demonstration in 
front of city offices and the story was picked up by mainland and 
Hong Kong media, the Xiamen government decided to suspend the 
project.  A text message that reportedly circulated among more than 
one million Xiamen residents in recent days warned of the dangers 
posed by the project, compared the plant to "an atomic bomb in 
Xiamen," and urged residents to "take action for our own survival!" 
Up to one million people reportedly received the message.  The story 
and planned protest was reported by numerous media outlets on May 
¶30.  At a press conference on the morning of May 30, Xiamen Vice 
Mayor Ding Guoyan announced that the government had suspended the 
project and would request an additional environmental assessment. 
 
¶5. (SBU) In a follow-up call to the Xiamen Foreign Affairs Office, 
an official told us they had no further information on the case. 
Two contacts in Xiamen, one a lawyer and the other a manager with 
Dell, said they had received the text message and supported the 
effort to stop the plant's construction.  They both expressed 
skepticism that the project had been dropped, however, and said 
officials may push it through after the media attention dies down. 
 
Comment 
------- 
 
¶6. (SBU) This case highlights the growing public awareness of 
 
GUANGZHOU 00000620  002 OF 002 
 
 
environmental issues in China and the willingness of citizens to 
voice their complaints.  In this case, the threat of public 
protests, and the resulting media attention, proved more effective 
than a petition to the central government.  Though the future of the 
project is unclear, it appears that the Xiamen government - which 
prides itself on its environmental activism - is sensitive to the 
charge that it has ignored environmental protection for the sake of 
economic growth. 
 
GOLDBERG