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The U.S. subsidiary of Formosa Plastics Corp (1301.TW) has agreed to pay $7.5 million and to cooperate with plaintiffs to settle an antitrust lawsuit alleging the company and others curbed the supply of a widely used chemical in a scheme to inflate prices. (Scarcella, August 16, 2023)

“When the government of Taiwan planned for the future of Taiwan several decades ago, it focused exclusively on industrially stimulating the economy. It has been promoting that kind of economic growth and development since the 1970s, making it appear as if industrial growth is the only factor to consider with regard to the country’s future. In the name of progress and economic revitalization, state-led industrialization walks hand in hand with private corporations. Together, they compete for the world’s largest petrochemical plants. The industrial development policy of Taiwan is one of the factors in the loss of Taiwan’s coastal wetlands, the subsiding of land from industrial water withdrawal and sand mining, and the increase of toxic air emissions, contaminated water, and toxic buildup of metals in soils (Wu and Wu 171–2). This “macroeconomy” policy ruins bioregions.” (Chang, 2023, p. 171)” 

The Taiwanese Formosa Plastics Corporation (FPC) is the tenth largest petrochemical company in the world. Focused primarily on the production of polyvinyl chloride (PCV) resins (Wu 2022), the FPC is the main subsidiary of the larger Formosa Plastics Group (FPG), a vertically integrated, global conglomerate that owns businesses in biotechnology, electronics, and logistics, among others (Wikipedia 2020). Formosa’s four main subsidiaries (all petrochemical companies) account for an estimated 10 percent of Taiwan’s gross domestic product (Wu 2022). The most important sites for production are Formosa plants in Yunlin County (Central Taiwan), Point Comfort (Texas), and Baton Rouge (Louisiana). Enabled by the shale gas boom discussed above, plants at all three sites are subject to ongoing expansions, including a proposed $200 million plant in Texas, and the $12 billion industrial complex in Louisiana. Formosa also operates a steel plant in Central Vietnam that is the focal point of much local and transnational activism.

Formosa’s current economic and cultural standing is deeply connected to Taiwan's history of industrialization. The Formosa Plastics Corporation and Group were founded by Wang Yung-ching and his brother Wang Yung-Tsai in Kaohsiung in 1954. Born under Japanese occupation, Wang Yung-ching made a living selling and delivering rice as a young boy, and later operated his own rice shop as a teenager. Eventually, Wang transitioned into the lumber business and benefited from market liberalization following the end of Japanese colonial rule (Lin 2016). However, since US military forces destroyed one of his mills during WWII, Wang received $800,000 from USAID, which he used as capital to found Formosa Plastics (Shah 2012). Until his death in 2008, Wang became one of Taiwan’s richest persons and remains widely known as the “god of management” (Huang 2008).

In Taiwan, conglomerates like the Formosa Plastics Group are called guanxiqiye (“related enterprises''), a colloquial term for tightly-controlled, family-owned businesses. According to anthropologist Ichiro Numazaki (1993), the expression emerged from 1970s business discourse and quickly became a self-identifying status symbol for many corporations (Numazaki 1993, 485). Numazaki argues that Chinese trading tradition (emphasizing partnerships) and Taiwan’s vexed relationship to Japan and China contributed to the rise of family-owned enterprises. Daughter Cher Wang has co-founded important businesses outside of the petrochemical sector, including consumer electronics company HTC. However, the Formosa family has also experienced a series of conflicts: in 1996, Wang Yung-Ching expelled his son Winston for extramarital affairs, who later became involved in ongoing efforts to disclose his father’s substantial tax evasion (Offshore Alert 2018). Today, the Formosa Group is in the process of transitioning key positions away from family members (Taipei Times 2021).

Formosa’s operations have further been shaped by Taiwanese politics and cross-strait relations with China. Considered a moderate liberalizer, Wang held close ties to Taiwan’s democratic party, but also continued to push for expansion in the Chinese mainland during his lifetime, often leading to conflicts between Taiwanese and Chinese administrations (Lin 2016, 81). In 1973, Wang’s plans to build a large petrochemical complex in Taiwan were halted by the authoritarian Kuomintang (KMT) government, but following the lifting of martial law in the mid-1980s, Formosa made a second attempt, suggesting to build the complex in the scenic Yilan County (Ho 2014). Rising concerns over petrochemical development and pollution, however, led to mass protests by local residents and fisher people, creating a landmark moment for Taiwan's larger democracy movement (Ho 2014). In face of this opposition, Wang arranged secret trips to mainland China, and later announced that the plant would be built on the island of Haitsang in Xiamen province. Yet, economic sanctions between China and Taiwan, combined with pressure by the nationalist KMT government, eventually led to construction of the vast petrochemical complex in the rural and impoverished Yunlin County in Central Taiwan (Lin 2016, 82).

This text builds from earlier conceptions of the term “land dispossession” and “land grab”. As defined by the 2011 International Land Coalition, land grabbing specifically refers to large scale land acquisitions that are “ in violation of human rights, without prior consent of the preexisting land users, and with no consideration of social and environmental impacts”. Characterization of land grabs and their resulting harms most commonly considers the effect of physical displacement and harms within the articulated “grabbed” area (Nyantakyi-Frimpong, 2017;Ogwand, 2018;  huaserman, 2018). Li and Pan seek to expand the frame of analysis for land grabs beyond the site of grabbed land to consider the full extent of harms associated with land grabs both geographically (via pollution spillover to areas outside of “grabbed land”) and temporally (via latent “expulsion by pollution). 

 “While the villagers are not passive victims and have adopted various resistance strategies, the space for them to struggle and achieve success is confined and shaped by the existing power asymmetry in which local villagers, capital and local government are embedded.”  (Li and Pan, 2021, p 418). 

“...this framing of land dispossession is problematic in two aspects. Firstly, it obscures an invisible form of land dispossession in which people still maintain control of their land but its use value is damaged by pollution. This kind of indirect land dispossession could lead to expulsion, not due to the direct loss of control over land but by it being rendered useless by pollution.” Li and Pan, 2021, p 409). 

 This text employs a case study approach to characterize how villagers in a village in China have been displaced “in-place” as a result of new industrial activities within the area  (all specific details have been hidden within the publication, wherein the names of villager groups and the site of study itself is referenced only by coded letters). The scale of analysis primarily centers at the village level, though analysis of the case study itself extends towards the country level specifically when analysis of state actors are involved. 

Authors Hua Li and Lu Pan are scholars from China. Li is  affiliated with the College of Humanities and Law at Taiyuan University of Technology, wherein her research focuses specifically on water politics, environmental justice, and rural development and agrarian change. Pan is affiliated with the College of Humanities and Development at China Agricultural University. Her research interests include marginalized communities, rural development, and agrarian change.