In Depth: Shanghai Slaps $7 Million Record Fines on Nine Firms for Mazhou Island Construction Waste Dumping
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By the time the cargo ships reached the shores of Mazhou Island in the Yangtze River, their holds were brimming with the byproducts of Shanghai’s relentless growth — millions of tons of construction waste, or “zha tu,” hauled illegally across provincial lines under the cover of routine logistics. From afar, it looked like development. Up close, it was environmental damage unfolding in slow motion.
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- Over 155,000 tons of Shanghai construction waste were illegally dumped on Mazhou Island, causing severe ecological damage and resulting in nearly 50 million yuan ($7.07 million) in fines to nine companies—the highest ever for an environmental case in the city.
- The scandal exposed the difficulties Shanghai faces managing 100 million tons of annual construction waste, leading to a ban on cross-province soil transport and new regulatory reforms.
- Jiangsu and local governments have launched costly, multi-year restoration efforts for Mazhou’s wetlands.
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[para. 18][para. 19][para. 20] Following the crackdown and a ban on cross-province soil transport in July 2025, construction firms now face new obstacles: stricter soil quality standards, fewer legal sites, and ongoing illegal dumping, albeit on a smaller scale.
[para. 21][para. 22][para. 23] In reaction, Shanghai has started reforming its waste management system, launching public tip lines and convening forums for systemic overhaul. Experts advocate for more temporary transfer stations, pricing reform, and a shift to a market-driven, unified system with stronger oversight.
[para. 24] The underlying issue remains unresolved: as urbanization continues, finding sustainable solutions for massive construction waste volumes grows more pressing. The Mazhou case is a stark warning of the enduring ecological costs of neglect.
- Shanghai Hong’an Construction Engineering Co.
- Shanghai Hong'an Construction Engineering Co. is at the center of Shanghai's largest illegal solid waste case. The company transported 155,000 tons of construction waste to Mazhou Island without proper environmental paperwork. Its chairman, Hou Yihong, holds several civic titles, and another company under his name was also fined. Hong'an received a penalty of 6.06 million yuan for violating China's Solid Waste Pollution Prevention and Control Law.
- Shanghai Aohong Environmental Construction Co.
- Shanghai Aohong Environmental Construction Co. was fined for its involvement in illegally transporting construction waste to Mazhou Island. This company is linked to Hou Yihong, who also chairs Shanghai Hong'an Construction Engineering Co. Both companies were penalized as part of Shanghai's largest-ever illegal solid waste case, which resulted in nearly 50 million yuan in total fines.
- Shanghai Huating Loading and Unloading Co. Ltd.
- Shanghai Huating Loading and Unloading Co. Ltd. received the largest fine in Shanghai's biggest-ever illegal solid waste case, totaling 19.08 million yuan. This company was penalized for violating China's Solid Waste Pollution Prevention and Control Law by transporting solid waste outside the city without proper registration.
- Shanghai Qinglong Machinery Construction
- Shanghai Qinglong Machinery Construction was fined 17.23 million yuan as part of Shanghai's largest-ever illegal solid waste case. The company's Taihe Road transfer dock, licensed for Metro Line 18 waste, became a central node in diverting soil to Jiangsu, rather than legal sites. This operation resulted in the dock's suspension and ongoing criminal investigations.
- Shanghai Mengchang Construction
- Shanghai Mengchang Construction was one of nine companies penalized in Shanghai's largest-ever illegal solid waste case. The company received a fine exceeding 1 million yuan for its involvement in illegally transporting construction waste from Shanghai to Mazhou Island. This operation diverted waste to an ecologically protected area instead of designated legal sites.
- Shanghai Longdeqi Industrial
- Shanghai Longdeqi Industrial was implicated in Shanghai's largest-ever illegal solid waste case. The company was fined more than 1 million yuan for its involvement in the illicit dumping of construction waste on Mazhou Island. This was part of a larger operation involving several companies illegally transporting waste across provincial lines.
- Jiangxinzhou Ecological Development Co.
- Jiangxinzhou Ecological Development Co. was one of the companies fined in the illegal solid waste dumping case on Mazhou Island (also known as Jiangxinzhou). The company received a fine for violating the Yangtze River Protection Law, indicating its role as a receiving party for the illegally transported waste.
- Jiangsu Huajing Asset Management Co.
- Jiangsu Huajing Asset Management Co. is owned by the city of Jingjiang and is a major shareholder in Jiangxinzhou. They are leading a multi-year restoration effort for Mazhou Island, which became a dumping ground for illegal construction waste. The company will oversee property management and machinery purchases for the restoration.
- 2024：
- Mazhou Island was designated a 'provincial ecological island' and earmarked for long-term wetland preservation.
- March 2025 - June 2025：
- Caixin conducted a months-long investigation into the illegal waste trade, tracking nearly 200 construction barges from Shanghai to Mazhou Island.
- June 2025：
- Caixin reporters arrived on Mazhou Island and documented widespread environmental damage.
- July 2025：
- Shanghai banned all cross-province soil transport following the Mazhou dumping scandal.
- September 2025：
- Shanghai’s coast guard intercepted two cases of illegal barge dumping in the Yangtze estuary.
- September 2025：
- The Shanghai environmental bureau launched a two-year campaign for public tips on illegal dumping.
- November 2025：
- Jiangsu authorities began a multi-year ecological restoration project on Mazhou Island.
- November 2025：
- Officials convened a high-level forum to rethink the city’s construction waste regulatory framework.
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