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China's plastic bag ban banned repercussions from all walks of life
The ban on plastic bags issued by the Chinese government has attracted warm response from the international community, but it also poses new challenges to the Chinese plastics industry. The plastics industry is still digesting the impact of two government policy changes in the past six months (including reduction of export tax rebates and mandatory collection of import raw material tariffs on processing trade).
The impact of this policy will be on domestic suppliers rather than exporters. Whether the ban is a blessing or a blessing to plastics processors, it will only be known if we look at specific progress.
The Chinese State Council announced that it will ban the production, sale and use of ultra-thin plastic bags with a thickness of less than 0.025 mm. At the same time, retailers — including supermarkets, department stores, and bazaars — will not be allowed to provide plastic shopping bags of any thickness for free.
This order will take effect on June 1 this year, and the Summer Olympic Games will be opened in Beijing in two months.
In an announcement issued on December 31st, the General Office of the State Council said: "No ultra-thin plastic bags are available for passenger trains, ships, buses, planes, stations, airports, and scenic spots." The announcement was announced on January 8 in the Central Government. On the official website.
The directive states the importance of disabling plastic bags, emphasizing that the misuse of plastic bags and the lack of regenerating plastic bags have caused serious pollution and wasted energy and resources. Ultra-thin shopping bags are easily damaged and are mostly discarded at random, becoming the main source of “white pollution†(ie, pollution from waste plastic bags and Styrofoam containers).
Although some retailers—supermarkets and large chain stores—welcome the ban, consumers’ concerns are greater than support.
According to an online poll conducted by the People's Daily, China’s largest circulation daily newspaper, nearly 60% of the 34,244 respondents voted against canceling the free shopping bag. The reason is that this will cause inconvenience.
The interests of plastic bag manufacturers are also closely linked.
According to Ma Zhanfeng, secretary general of the China Plastics Processing Industry Association (CPPIA), “There are more than 100 plastic shopping bag manufacturers in China. We are conducting a survey to see how they will respond to the new regulations.â€
Li Guojun, vice president of CPPIA, pointed out that a large number of small factories use recycled resins to produce ultrathin plastic bags.
He said: “Many of these companies started operations after purchasing a machine with several thousand RMB [a few hundred dollars]. They are not even registered with government agencies. It is therefore difficult to quantify the actual size of the industry.â€
Allen Tsai of Longmeng Machinery Co., Ltd., a manufacturer of film and bag equipment headquartered in Tainan, Taiwan, said: "As soon as the new law is introduced, these ultra-thin plastic bag manufacturers will have to change their business types.
But turning to exports may not be a wise choice.
Tsai said: "Despite the fact that Chinese plastic bag exporters have not been affected by the new directive, exporters have had a hard time due to anti-dumping taxation and rising material costs."
The outlook for thicker and more durable plastic bags remains bright, although there is still uncertainty about whether consumers will reduce the use of shopping bags. At least some analysts hold positive opinions.
Deepak Parikh, a consultant with Chemical Market Resources Inc. in Houston, Texas, said in a telephone interview: "I don't think the new policy will significantly curb domestic consumption of plastic bags or resins - mainly polyolefins." Former officials of DuPont Dow Elastomers Inc. have extensive experience in the Chinese and Indian markets.
Andrew Ho, headquartered in Houston, USA, United States Chemical Markets Union, said: "From the consumer point of view, as long as the price is not too high, the convenience and practicality of using plastic bags should be more important than paying for plastic bags."
He said: "If the cost of a single plastic bag rises from zero to 0.10 yuan or 0.20 yuan, the change in relative costs, the change in demand should be small." Ho is the director of CMAI's Asia Polyolefins, resident in Singapore.
Official media reported that the government will announce the standard of shopping bags as soon as possible. It is not yet clear whether the new standard will cover production and pricing.
Ho also pointed out that Chinese consumers generally use plastic shopping bags to store rubbish.
He said: "If you cancel the free plastic bags, consumers must buy more plastic garbage bags, and the contents and source of the garbage bags are actually different from the plastic shopping bags."
Taiwan, which has a retail structure similar to the mainland, has successful experience in enacting and implementing such bans.
Tsai said in a telephone interview: “At the beginning, people were more worried, but this effect quickly disappeared.†Taiwan’s workers in the plastic bag factory organized a protest in the beginning of 2003 to abolish free plastic shopping bags. activity. “But soon consumers in Taiwan are accustomed to paying for plastic bags, and the plastics industry continues to grow.â€
“From a technical point of view, thicker plastic bags are easier to produce than ultra-thin plastic bags. It takes less time to cut plastic bags, plus the resin used for each plastic bag increases, and As sales targets become higher-end consumers, profits actually increase."
According to the China Chain Stores Association, a trading group headquartered in Beijing, China has used 50 million plastic shopping bags each year in retail stores.
Ho said: “If we convert 50 billion plastic bags into units of weight, it may be comparable to the total demand for plastics in China. However, the impact on total demand or the use of plastic resins will not be too obvious, unless it is compared with convenience. The cost of the bag is too high, and this is a very subjective judgment."
The State Council also encourages regeneration in the new law, requiring recyclers to sort plastic waste for reprocessing.
Ho said: "In terms of the size of plastic recycling, China has actually taken the lead in the world." He believes that the new law will further promote the development of the recycling industry.
At the same time, Hong Kong plastic bag manufacturers - many of which set up factories in China to produce plastic bags but sell them in Hong Kong - have questions about the applicability of the new law.
Ricky Wong, executive vice chairman of the Hong Kong Plastic Bags Manufacturers Association, said that, for example, the thickness of plastic bags imported from the mainland by Hong Kong supermarkets is mostly 18 microns. The new law will ban the production of plastic bags less than 25 microns thick, but Wong said the plastics industry is waiting for the government to give a clear statement on whether the new law applies to plastic bags exported to Hong Kong.
Wong said that a similar plan recently implemented in Shenzhen does not seem to impose strict requirements on exporters, but the situation is not yet clear.
Shenzhen has been experimenting with a provision prohibiting the provision of free shopping bags since November 2007. Shenzhen officials stated that they are currently revamping the draft law based on feedback from the past few months.
Wong said that the plastics industry will pay close attention to the implementation of such bans. He analogized the ban on plastic bags and Guangzhou’s comprehensive ban on motorcycles in urban areas.
He said: "Once the government decides, such as prohibiting motorcycles, they will immediately implement them. The key depends on how determined they are."