These are what we call crayfish (pronounced cra-fish) in the U.S. They are a favorite seasonal treat for people in the deep south. Actually, it's one of my favorite meals. Guess one country's trash is another's treasure. :p
Nah. Wiki says that most are exported from either China or U.S.(Lousianna). Also, it says crayfish can't survive in polluted water. In addition, I don't think anything eaten could damage your lungs, especially if it is thoroughly cooked. It's probably a misunderstanding. People get scarred easily when new foods appear. You see the same kind of thing in the US with new Asian dishes.
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Anyway, yay crayfish! :)