According to official documents disclosed by Reuters, China ordered at least 255 factories headquartered in Shanghai, including a large refinery operated by Sinopec, to shut down 14 days before the G20 summit to reduce pollution. The document was issued by the Shanghai Environmental Protection Agency, which widely ordered petrochemical bases and logistics companies to shut down between August 24 and September 6.
According to industry insiders and government officials, relevant departments in neighboring Zhejiang Province and Jiangsu Province have issued similar orders to limit air pollution and safety hazards within a 300-km radius of Hangzhou. The G20 summit will be held in the first week of September, and it has become China's largest diplomatic event this year. Leaders from various countries such as Chinese President Xi Jinping and US President Barack Obama will gather.
According to the document, there are 255 factories headquartered in Shanghai, about 200 kilometers from Hangzhou, covering industries including chemicals, building materials, pharmaceuticals and printing. Reuters contacted four factories and learned that the government does not provide subsidies for shutdowns and maintenance.
When China held high-profile diplomatic and sporting events such as the Asia-Pacific Economic Cooperation and the 2008 Beijing Summer Olympics, there were precedents for shutting down factories and restricting heavy equipment operations. Said Jing Chunmei, a Chinese researcher on international economic exchanges.
In the long run, China needs to develop a market-based approach to deal with pollution problems, rather than direct orders. In addition to corporate social responsibility, there are also profit and loss issues to consider.
The EPA document stated that during the G20 summit, Sinopec's refining subsidiary Shanghai Petrochemical Company will reduce its production rate to 50%, reducing its production capacity by approximately 120,000 barrels per day. Coal-fired power plants in this area that do not meet the emission standards will be completely closed in two weeks, and the utilization rate of heavy machinery in the Shanghai area will be reduced by 30%.
An official of Sinopec Jinling Petrochemical Company said that another heavy oil refinery headquartered in Nanjing, Jiangsu was requested by the local government to "appropriately reduce throughput," but did not give any specific scale of emission reduction. According to the EPA document, Shanghai Petrochemical will shut down 120,000 barrels of crude oil distillation unit, 3.9 million tons of hydrocracking unit, 3.5 million tons of catalytic cracking unit, and a dozen other secondary refining facilities.