Business Viewpoint: No sloppy management of discontinued companies

On December 27, 2003, three workers in a waste products market in Leshan City, Sichuan Province, were poisoned when cutting old chlorine cylinders, causing a chlorine gas leak. In October 2004, the Yibin Public Security Bureau discovered 12 used chlorine cylinders at a waste collection site in Yibin, many of which were rusted and still contained residual chemicals. More recently, in March of this year, a chlorine leak occurred in an Anhui county, and the incident was handled by local fire brigades and safety authorities. The source of the leak was traced back to a recovered used chlorine cylinder. In recent months, there have been numerous cases of poisoning and safety incidents caused by the improper use of waste chemical containers that have entered the informal waste collection system. These incidents are closely linked to the lack of oversight following the shutdown of some industrial enterprises. As market competition intensifies and industries undergo restructuring, many small-scale, outdated, or unprofitable companies are forced to cease operations. When a company stops production, both the management and government agencies often shift their focus to other priorities—such as attracting investment, reorganizing operations, or managing employee placements. As a result, the oversight of these closed enterprises is frequently neglected or even abandoned. Consequently, chemical containers that were once strictly controlled are now being sold as scrap metal and reintroduced into society, posing serious risks. Unlike other types of businesses, chemical companies operate under conditions involving toxic substances or high-pressure environments. While they are active, strict regulations and dedicated personnel are essential. However, once a company stops production, government inspections often cease, and internal staff may leave, leaving the facility unmonitored. The complex piping systems and equipment remain in place, along with residual chemicals, creating significant safety hazards. Moreover, the "software" of these companies—such as certifications, permits, and access to industrial policies—can also be misused. For example, a company that has ceased operations might lease its certification and premises to illegal operators, allowing them to conduct unauthorized production under the guise of legitimacy. In some cases, even though the machinery remains unchanged, the company may continue to benefit from policy-driven incentives, effectively enabling so-called "five small" enterprises to receive subsidies despite being officially shut down. This undermines national industrial policies and creates further risks. The closure of enterprises is a natural part of a market economy, but it should not lead to a complete withdrawal of regulatory oversight. For chemical companies, the proper storage of hazardous containers, the monitoring of equipment transfers, and the safekeeping of business licenses are all critical measures that must not be overlooked. Without such controls, the dangers posed by abandoned facilities can have far-reaching consequences for public safety and environmental protection.

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