Subsidence and Overgrowth: Why Has a Provincial Key Project Remained Stalled for So Long?

Deep News04-21 04:21

The Guangxi Zhongdian Baise Energy Electronics Industrial Park, part of the China-ASEAN Industrial Cooperation Zone, is planned to host future materials and hydrogen energy industry bases. According to documents from the Baise Baidong New Area Management Committee, the project is designated as a key initiative of the Guangxi Zhuang Autonomous Region, a major investment attraction for Baise City, and a regional "racehorse" project. However, this significant project has been suspended for nearly a year, with the site now overgrown with weeds, sections of walls collapsed, and severe ground subsidence in some factory buildings. Disputes over construction responsibilities and progress payment valuations between the owner, Zhongdian Industrial Development (Guangxi) Co., Ltd. (Zhongdian Guangxi), and the constructor, China Railway Shanghai Engineering Bureau Group Fifth Engineering Co., Ltd. (China Railway Shanghai Bureau Fifth Company), have led to an indefinite work stoppage, severely delaying progress.

Over 57 major quality issues were identified. The Baidong New Area Management Committee reported that, following communication with Zhongdian Guangxi and China Railway Shanghai Bureau Fifth Company, a seven-expert panel was formed from the Municipal Housing and Urban-Rural Development Bureau’s quality safety station, fire safety department, and construction association. From November 25–26, 2025, the panel inspected the construction site and identified 70 potential issues, including 10 construction quality problems and 60 fire safety defects. An expert opinion document listed issues such as road sinking and cracking, leaning blast walls, cracked and sunken concrete floors, and uneven fireproofing on steel structures. The document attributed the core problems to inadequate management by the constructor, ineffective supervision, unfulfilled responsibilities by the construction team, and oversights in design.

From December 2–11, 2025, Zhongdian Guangxi commissioned the National Building Engineering Quality Inspection and Testing Center, affiliated with the China Academy of Building Research, to conduct further inspections. The center identified over 57 major quality defects and provided a detailed report. Additionally, Zhongdian Guangxi reported that the constructor had repeatedly violated design specifications during construction. In November 2025, the design institute, the Eleventh Design and Research Institute for Electronics and Technology, inspected the site and found 23 instances of non-compliance with design requirements.

Blast walls are at risk of collapse. On-site observations revealed large-scale tilting of the perimeter walls due to ground subsidence. Inside the park, some completed factory buildings already housed equipment, but the floors were visibly uneven, with noticeable depressions at intervals. A Zhongdian Guangxi representative emphasized that as a hydrogen energy production base, the park demands high safety standards, and ground sinking poses significant risks to future tenants. Specially designed blast walls also show signs of potential collapse, with one joint exhibiting a 20-centimeter-deep depression temporarily filled with rubble. Cracks are widespread across internal roads and structures, and one factory floor has a sinkhole over 40 centimeters deep.

A representative from Beijing SinoHytec Co., Ltd., a planned tenant, reported discovering approximately 7–8 centimeters of floor settlement during internal cleanroom construction. The representative stated that equipment installation was impossible under such conditions, and production could not proceed. SinoHytec had planned to commence installation in May 2025 and begin production by June, but due to unresolved issues, equipment worth approximately 60 million yuan remains idle, incurring substantial losses from delays and staff travel between Beijing and Baise.

The constructor refuses to rectify issues, citing unpaid fees. Baise Municipal labor authorities confirmed that China Railway Shanghai Bureau Fifth Company is suspected of illegal subcontracting, with nine of ten subcontractors having no employment relationship with the company, indicating potential资质挂靠 (qualification lending). The company is also accused of fabricating payroll records, including over 400 individuals who allegedly never worked in Baise. The Municipal Housing and Urban-Rural Development Bureau noted that after a third-quarter 2025 safety inspection identified 70 problems, the constructor acknowledged the list but failed to make corrections within the 15-day rectification period.

Project manager Li Bo of China Railway Shanghai Bureau Fifth Company admitted to receiving the problem list but claimed rectification was impossible due to unpaid progress payments. The company sought approximately 180 million yuan, while Zhongdian Guangxi approved only about 98 million yuan (with 83 million yuan already paid), creating a significant dispute. Li also shifted partial blame to the owner, alleging that Zhongdian Guangxi requested the removal of ground stabilization piles, contributing to subsidence issues. With unresolved payments, the two parties have entered litigation.

Construction experts consulted noted that inadequate soil compaction and missing ground piles complicate repairs, potentially requiring extensive reconstruction. They warned that further delays, especially during Guangxi’s rainy season, would worsen沉降 (subsidence). The Baidong New Area Management Committee is currently mediating to terminate the construction contract promptly, allowing phase two to proceed, while legal channels address disputes and quality concerns.

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