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Pollution” in 1984 (revised in 2008) and the Water Law in 2002, China established
regulatory control to prevent and control freshwater pollution and water
resource use. Some of the Water Law’s provisions allow for tougher penalties
on polluters, a discharge permitting system, citizens to bring class action suits
against polluters, improved standards, and increased transparency and penalties
for inadequate government enforcement 163 .
Historically for companies in China, it has been more profitable to pay pollution
fines rather than implement prevention measures to the point that some
companies incorporate such expenditures into their budgets. However, recent
amendments to the Water Pollution Prevention Control Law have raised financial
penalties on polluters with no maximum limit specified for serious
incidents 164 .
40% of the more than
40,000 plants in the
petrochemical, chemical,
and pharmaceutical
industries surveyed
posed a severe threat
to public health.
Addressing China’s water problems has been hampered by local government
efforts to protect local industries and jobs, government corruption, the desire
to sustain rapid economic growth, and the national environmental regulatory
body, the State Environmental Protection Administration (SEPA)’s “crippling
weakness” 165 . It is currently rumoured that the 1989 Environmental Protection
Law is being revised to place more emphasis on the environment as a consequence
of China’s environmental degradation 166 .
Reputational risks
As a consequence of growing internal dissent and conflict over both water allocation
and water quality, the central and regional governments are facing increasing
pressure to address water problems. Chinese citizens are increasingly
aware of environmental issues, and activism against water pollution is increasing.
There were an estimated 187,000 environmental protests in 2012, which is
an average of 500 protests a day 167 .
For the first time ever, the Chinese government has officially acknowledged the
existence of “cancer villages,” which are often located near factory complexes.
These villages rely on rivers polluted with toxic chemicals for their drinking,
washing, and cooking water 168 . The Ministry of Environment determined that
40% of the more than 40,000 plants in the petrochemical, chemical, and pharmaceutical
industries surveyed posed a severe threat to public health 169 .
In 2005, a chemical plant explosion in the city of Jilin contaminated the
Songhua River with 100 tonnes of benzene-related pollutants. Local residents
reported tap water turning red or yellow 170 . Water supply to nearly 4 million
people in Harbin, the capital of Heilongjiang Province, was suspended 171 .
Though the government responded with plans to build over 200 “pollution
control projects” along the Songhua River and shut down a small number of
commercial and industrial enterprises in an effort to cut the worst pollution,
China continues to suffer chemical accidents and severe pollution. This shows,
that the chinese government is ready for strict and sudden environmental action
if nessecary.
THE IMPORTED RISK Germany’s Water Risks in Times of Globalisation | 49