Xinchang County, was one of the six poverty-stricken counties in Zhejiang Province in the late 1990s. And yet the county developed into one of the top 100 counties in 2004. In its development, Jingxin and several other pharmaceutical companies have contributed to local employment and promoted industrial economic development. However, with the rapid development of the pharmaceutical industry, environmental problems have become increasingly prominent, long-term water pollution has seriously affected the agricultural production and daily life of the downstream residents along the Xinchang River, especially villages in Shengzhou City. Huangniqiao Village in Shengzhou City, which is less than 100 meters away from the factory, is one of the nearest villages being affected.  According to the reflections from the local villagers, 3 months after the pharmaceutical factory was established, the groundwater in this area started to be undrinkable anymore. In the next few years, villagers gradually found that the river fish, shrimps, snails, and even the frogs are extinct, the output of crops was dramatically reduced, crops began producing vegetables that were unfit to eat, the odor emissions from the plant was so unbearable that villagers “would rather be killed than to be overwhelmed by stench”. In the past years, the NPC deputies and CPPCC members from Shengzhou City raised the issue to higher authorities for many times, but it turned out to be ineffective. The affected population has almost lost confidence in the government's handling of the problem. As reported by villagers from the affected surrounding area, none of the youths in those villages are qualified to join the army in the recent years because they could not pass the National Recruitment Physical Examination. At the same time, more than half of people in the 35-40 age group are suffering from liver disease, while in the 40-45 age group, the rate increased to 60%. There are obviously more inpatients from Xinchang and Shengzhou in the Zhejiang Cancer Hospital, for which the impact of the long-term breathing within the polluted air and drinking the contaminated water caused by the pharmaceutical company are the main reasons.  On June 22, 2005, the Xinchang Jingxin Pharmaceutical Company exploded, resulting in one death and 4 injured. This accident triggered the villagers’ long-standing panic and dissatisfaction to the company. In addition, the scorching weather in the summer of 2005 reduced the water level in Xinchang River, while the exacerbated pungent odor emissions challenged people’s tolerance.  On July 4, 2005, a conflict broke out when villagers living near Xinchang Jingxin Pharmaceutical Company asked the company for compensation of “nutrition fee”  because of serious odor problems and damages to rice crops. Villagers smashed the glass door in the reception room and destroyed some facilities in the office as the responsible person in the factory repeatedly postpone the negotiating time. The initial conflict resulted in the temporary suspension of production . But on July 15, believing the facility was resuming production (the official explanation was that officials and company staff were checking some of the hazardous substances stored in the facility), a few hundred villagers tried to blockade the facility, which led to a violent confrontation with the police . More than 10,000 villagers (As reported by New York Times: as many as 15,000 people) from nearby villages were drawn into the confrontation, they massed and waged a pitched battle with the authorities, overturning police cars and throwing stones for hours, undeterred by thick clouds of tear gas. Fewer people turned out on July 18 under rainy skies, but residents of this factory town in the wealthy Zhejiang Province vow they will keep demonstrating until they have forced the 10- year-old plant to relocate. "This is the only way to solve problems like ours," said a 22-year-old villager whose house sits less than 100 yards from the smashed gates of the factory, where the police were massed. "If you go to see the mayor or some city official, they just take your money and do nothing." The unrest only dissolved after the heavy rainstorm. A few villagers were arrested later by the police. Until 7 AM on July 21, after Jingxin pharmaceutical plant has completed the handling of hazardous chemicals, the villagers no longer gather and the police have also been evacuated. After the incident, the local environmental protection bureau initiated daily pollution inspection, sampling, and monitoring on Jingxin Pharmaceutical Company. It also conducted an environmental assessment for the whole Xinchang River Basin and issued reports on how the company needed to address pollution problems based on the assessment.