China says will shift chemical plant after protests

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BEIJING (Reuters) - China plans to shift a proposed chemical plant to another part of the eastern province of Fujian following mass demonstrations, officials said on Friday, defending the project against a new wave of protests. The plant to make paraxylene, or PX, a petrochemical used in polyester and fabrics, was originally intended for the Fujian seaside city of Xiamen, but was put on hold after protests last June brought thousands into the streets.

By Lindsay Beck

BEIJING (Reuters) - China plans to shift a proposed chemical plant to another part of the eastern province of Fujian following mass demonstrations, officials said on Friday, defending the project against a new wave of protests.

The plant to make paraxylene, or PX, a petrochemical used in polyester and fabrics, was originally intended for the Fujian seaside city of Xiamen, but was put on hold after protests last June brought thousands into the streets.

After further environmental assessments and an invitation late last year for public comment -- a rare move for the country's Communist leaders -- officials confirmed on Friday that the project would not go ahead in Xiamen.

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"The city government has decided that this good project can be constructed in a more suitable part of Fujian province, a place with more space," Liu Cigui, the mayor of Xiamen, told reporters on the sidelines of China's annual parliament session.

The project is most likely to move to the Gulei peninsula, in the far south of the province, but last week residents there gave notice they also did not want a chemical factory in their backyard.

The uncertain fate of the plant is part of the ongoing struggle in China between industrialization and concerns over pollution, as the consequences of decades of unchecked economic growth fuel social unrest.

The PX protests, along with demonstrations earlier this year in Shanghai over the extension of a high-speed "maglev" train link, also highlight the mistrust many residents have in their leaders, as increasingly wealthy citizens demand a say in decision-making.

Several days of renewed demonstrations over the PX plant hit the Gulei area last week and through the weekend, Taiwan's United Daily News reported, saying there were "fierce protests" and clashes with local authorities.

At one stage protesters attacked government buildings in a situation that was "almost out of control," the newspaper said.

The Communist Party chief of Zhangzhou, which oversees the peninsula, said people did not understand the economic benefits the plant could bring.

"Right now, the PX project is relatively sensitive. So it hasn't yet been implemented in Zhangzhou. However, there is that intention," Li Jianguo told reporters.

"Perhaps there are some people who are not welcoming the project. But what is the main problem here? It is that there are some misunderstandings," Li said. "In reality, the project is very good."

The top official in Fujian, Lu Zhangong, conceded that Xiamen was not the right place for the PX plant, but said the project itself was sound.

"We shouldn't say this project isn't good," Lu told reporters. "This project itself does not have any problems."

(Editing by Sanjeev Miglani)