Jiaxing pushed the polluting enterprises to "absolute ways"

"Last year's effects were good, but the days kept getting worse, and a tight period came along," said the manager of a chemical company in Jiaxing, Zhejiang Province, during an interview with a reporter. He shared his thoughts while reading a passage with the journalist. "We used to think that environmental protection was a big pressure. As long as the company didn't have a major incident, it would just get fined or be given a deadline for improvement. But now, it's different. Environmental protection isn't just about being close to the rules—it's about being clean and honest. Even banks won’t give you loans anymore. This is a completely new way of doing business." So, what exactly did the Jiaxing city government do to push these companies into compliance? The report highlighted a sensitive issue: on December 13, 2007, 25 chemical companies, including Jiaxing Huitong Chemical Co., Ltd. and Zhejiang Haichen Chemical Co., Ltd., were publicly listed by the Jiaxing Environmental Protection Bureau as “companies with poor environmental credit” due to excessive pollution. They were required to issue a public apology in the local newspaper, *Jiaxing Daily*. The apology appeared on the front page, making it hard to ignore: “All citizens of Jiaxing City: Among our 25 companies, due to a lack of environmental awareness, lagging infrastructure, failure to follow operating procedures, illegal discharges, and damage to public environmental rights, we have been classified as companies with poor environmental credit. This is both a punishment and a warning. Here, we sincerely apologize to all citizens…” At the end of the letter, the names of the 25 companies and their respective managers were signed. Public apologies have become a common tool in many cities, and this method has proven effective. Chinese people place great importance on reputation, so having a company’s name in the newspaper can be more impactful than simple financial penalties. “I got so many calls that day after the newspaper came out,” one environmental manager from a chemical company told the reporter. “It was really stressful. Which company would want to be the subject of a negative report?” While they admitted there were subjective factors like poor management, they also pointed out objective challenges, such as outdated technology and equipment. However, since the local government has raised the standards so high, the only option left is to fully cooperate and meet the requirements. Otherwise, the next step isn’t just a loss of face—it could mean the survival of the company itself. To address growing environmental issues, the Jiaxing City Government introduced a series of strict measures over the past six months. These included media exposure of polluting enterprises to increase public supervision, setting higher industry entry standards, implementing pollution control projects, establishing multi-departmental mechanisms for handling violations, and introducing a system for trading major pollutant emissions. At the start of the new year, the *Measures for the Implementation of Evaluation of Corporate Environmental and Credit Ratings in Jiaxing City* were put into effect. According to these measures, corporate environmental behavior is rated on a scale of five levels—“very good, good, fair, poor, and very poor”—represented by five colors: green, blue, yellow, red, and black. Companies rated as green or blue are eligible for various benefits, such as priority access to environmental funding, tax reductions, and participation in advanced evaluations. Green-rated companies are also considered for national environmental-friendly enterprise recognition. On the other hand, companies rated as red or black face serious consequences: they must rectify their issues within a set time, are placed under stricter environmental monitoring, lose eligibility for awards, and cannot apply for environmental funds or subsidies. Their information is shared with multiple government departments, and they are denied approval for new projects. Black companies are even forced to publicly apologize in the media, and those that remain black for two consecutive years may be ordered to shut down if they fail to improve. Environmental protection has become a necessity for chemical companies. More and more of them have realized that if they don’t meet these standards, they will not be able to survive. The strong pressure from government policies has forced companies to rethink their development models. The old path of sacrificing the environment for profit is no longer viable. On January 9, Haichen Chemical Company submitted a summary of its remediation efforts to the Jiaxing Environmental Protection Bureau and applied for “cap removal.” In the report, the company stated: “We can’t blame others. If we want to survive and develop healthily, we must face our problems, find the root causes, and truly solve them. That is the only correct choice.”

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