Regarding conflict of interest among the environmental protection departments, Zhang Aijun, director of Changli's Ministry of Propaganda, says, "There are no special cases of these kinds of "vested interest" relationships. They exist all over China, the most we can do is look for ways to avoid them."

But if assessments of government are based solely on continuing GDP growth, and economic indicators are still the impetus for promoting local government functionaries, then as long as polluting businesses can shell out more taxes, local government has no incentive to play hardball and punish them.

Thus, the putting forth of the Green GDP report's assessment standards would bring local government to the table of enforcing environmental law, effectively weakenening the intimate relationships they have with local businesses. Before this, strengthening environmental watchdog agencies' independence from local government is a must.

A Different Urgency

"It's not that we haven't realized [these things]," says one worker as he witnesses his plant being demolished. "We also know that a healthy environment keeps people healthy. Nowadays people don't just talk about what to eat, but whether or not it's organic. But when you have nothing to eat, will you really think of that? Well, we already have nothing to eat, and at this point, what use is it for us to talk about protecting the environment?"

Zhang Qinglai, a plant director a Qinhuangdao's Anfeng Iron and Steel Group, says that the thresholds for entering the steel industry are becoming higher and higher, and the burdens are becoming more and more unbearable.

As far as national industry policy is concerned, Zhang says that they are not qualified to comment, but starting in 2005, market access was affected by new rules stating that factory sites were not allowed to construct new facilities. Increasing output could only be accomplished with current equipment, renovated facilities, or reorganized property.

He believes that what's most urgent now is that the government quickly produce policy to solve historically remaining problems that are leaving these smaller mills caught between mutual competition and government assessment. How do deal with and develop these businesses is a real issue.