Massive development sinking Shanghai
Hongqiao area, Pudong's Sanlin and Zhangjiang areas have had the most severe land subsidence.
The most seriously affected area has sunk about 3 meters in the past five years, becoming even lower than the level of the Huangpu River, which cuts through the city, the report said.
The draft regulation stipulates a monitoring network to measure land subsidence for Shanghai's major municipal projects.
It also requires construction companies to evaluate land before digging pits of 7 to 15 meters deep, which is considered a deep-foundation ditch.
Violators could face a fine up to 500,000 yuan (USD 80,200), according to the draft. Critics say such a fine is too little for top builders.
Land subsidence in Shanghai became a real hazard in the 1950s when the city's groundwater resources were extensively exploited for cooling during the summer by Shanghai's newly developed industrial sector.
It has been estimated that every millimeter of subsidence costs Shanghai as much as USD 20 million for restoration and maintenance.
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