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5 White Paper on the Business Environment in China
develop its high-tech and higher-value-added industries, the within China or internationally.”38
use of plastics, molds and sophisticated manufacturing will Beyond energy applications, the gas’ use as a plastic
certainly play an important role.
manufacturing feedstock looks to be gaining popularity in the
e nancial slowdown did not spare this resilient industry, United States and is expected to see similar gains in China as
although prompt attention from the government in the form investments and production capacity increase.38
of the “Opinion of Central Committee and State Council on
the steady agriculture development and continuously increase Notable Policy Activity
the yield for farmer,” the “Light industry restructuring
and revitalization plan,” VAT reform and export tax rebate Guidance on Cement Production
adjustments all helped shield Chinese producers from the Published by the Ministry of Construction of the PRC
brunt of the crisis, according to the China National Light
Industry Council (CNLIC).31 on November 14, 2007 and e ective May 1, 2008, “Energy-
saving Standards for Cement Manufacturing Plant” (National
It was later reported by the Ministry of Industry and Standard No. GB50443-2007) outlines many guidelines for
Information Technology that the plastics industry grew by energy-saving steps in the manufacturing of cement, some of
double-digits on average in 2009,32 and in the rst half of which are compulsory.
2010 total output of plastic products grew by 20 percent year-
on-year to reach 44.8 million tons.33 Meanwhile, output of China’s cement production capacity has historically been
plastics and synthetic resins arrived at 21 million tons after concentrated in small plants using older technologies and, as
growing 23 percent in the same period,34 and investment in a result, being relatively ine cient energy consumers in terms
the sector grew by nearly 27 percent to reach 1.1 billion yuan of overall output. e use of more e cient technologies,
in roughly the same period.35 combined with the closure of smaller, older plants in favor
of higher-volume operations, utilizing better technology will
Even if the industry grew in total, research conducted by likely contribute to energy savings and the reduction of overall
ailand’s National Innovation Agency and Nova Institute environmental impact while maintaining or increasing overall
GmbH found that “Chinese PLA resin production volumes production. is is consistent both with the overall targets
‘collapsed’ between 2007 and 2011, as companies there had in the 11th 5-year Plan to improve energy e ciency by 20
problems with the quality of their lactic acid, a key building percent over a ve year timeline and also the intended move
block of PLA.”36 away from highly energy-intensive manufacturing.
Accordingly, “Chinese exports of PLA dropped from
4,400 metric tons in 2007 to 237 metric tons in 2009, and is guidance likely led to the following item, new entry
remained at those low levels in 2010 and 2011. at has requirements for companies looking to produce cement.
boosted Chinese imports of PLA from about 1,200 metric
tons in 2007 to 4,000 metric tons [in 2011].”36 New Entry Criteria for the Cement Industry
In November 2010, the Ministry of Industry and
e plastics industry has also turned to modi ed plastics
in an attempt to become more sustainable. Current estimates Information Technology (MIIT) announced revisions to the
place 75 percent of the Chinese market for modi ed plastics entry criteria for the cement industry, which became e ective
with foreign-invested enterprises. Domestic demand for such on January 1, 2011.
materials exceeded 5 million tons in 2010 and is forecasted to
reach 10.4 million tons by 2015.37 e revisions stipulated that:
Finally, the emergence of shale gas resources in both the 1. Production lines of cement clinker shall adopt a new
United States as well as China have buoyed the outlook for dry process method;
plastics manufacturers in both nations. According to a Plastics
News-quoted analyst based in Houston, Texas, China is likely 2. Production scale of cement clinker shall reach 4,000
to move quickly in capitalizing on newly-discovered shale gas tons per line each day. For underdeveloped areas where
reserves “because [the Chinese] need new energy sources very transport facilities and market capacities are limited,
fast.”38 scale requirement shall be minimum 2,000 tons per
line per day;
Although new investments valued at more than $16 billion
are expected in the U.S. aimed at exploiting local shale gas 3. Self-possessed fund shall account for minimum 35
deposits, “Chinese investment is not likely to be immediate,” percent of the total investment in the building,
in part due to the fact that “China’s most-studied shale gas rebuilding, expanding and moving of cement clinker;
elds are generally also located in the far northwest of the 4. Projects that fail to meet these standards shall not be
country, where it is costly to bring it to sizable markets either approved by authorities.39
164
develop its high-tech and higher-value-added industries, the within China or internationally.”38
use of plastics, molds and sophisticated manufacturing will Beyond energy applications, the gas’ use as a plastic
certainly play an important role.
manufacturing feedstock looks to be gaining popularity in the
e nancial slowdown did not spare this resilient industry, United States and is expected to see similar gains in China as
although prompt attention from the government in the form investments and production capacity increase.38
of the “Opinion of Central Committee and State Council on
the steady agriculture development and continuously increase Notable Policy Activity
the yield for farmer,” the “Light industry restructuring
and revitalization plan,” VAT reform and export tax rebate Guidance on Cement Production
adjustments all helped shield Chinese producers from the Published by the Ministry of Construction of the PRC
brunt of the crisis, according to the China National Light
Industry Council (CNLIC).31 on November 14, 2007 and e ective May 1, 2008, “Energy-
saving Standards for Cement Manufacturing Plant” (National
It was later reported by the Ministry of Industry and Standard No. GB50443-2007) outlines many guidelines for
Information Technology that the plastics industry grew by energy-saving steps in the manufacturing of cement, some of
double-digits on average in 2009,32 and in the rst half of which are compulsory.
2010 total output of plastic products grew by 20 percent year-
on-year to reach 44.8 million tons.33 Meanwhile, output of China’s cement production capacity has historically been
plastics and synthetic resins arrived at 21 million tons after concentrated in small plants using older technologies and, as
growing 23 percent in the same period,34 and investment in a result, being relatively ine cient energy consumers in terms
the sector grew by nearly 27 percent to reach 1.1 billion yuan of overall output. e use of more e cient technologies,
in roughly the same period.35 combined with the closure of smaller, older plants in favor
of higher-volume operations, utilizing better technology will
Even if the industry grew in total, research conducted by likely contribute to energy savings and the reduction of overall
ailand’s National Innovation Agency and Nova Institute environmental impact while maintaining or increasing overall
GmbH found that “Chinese PLA resin production volumes production. is is consistent both with the overall targets
‘collapsed’ between 2007 and 2011, as companies there had in the 11th 5-year Plan to improve energy e ciency by 20
problems with the quality of their lactic acid, a key building percent over a ve year timeline and also the intended move
block of PLA.”36 away from highly energy-intensive manufacturing.
Accordingly, “Chinese exports of PLA dropped from
4,400 metric tons in 2007 to 237 metric tons in 2009, and is guidance likely led to the following item, new entry
remained at those low levels in 2010 and 2011. at has requirements for companies looking to produce cement.
boosted Chinese imports of PLA from about 1,200 metric
tons in 2007 to 4,000 metric tons [in 2011].”36 New Entry Criteria for the Cement Industry
In November 2010, the Ministry of Industry and
e plastics industry has also turned to modi ed plastics
in an attempt to become more sustainable. Current estimates Information Technology (MIIT) announced revisions to the
place 75 percent of the Chinese market for modi ed plastics entry criteria for the cement industry, which became e ective
with foreign-invested enterprises. Domestic demand for such on January 1, 2011.
materials exceeded 5 million tons in 2010 and is forecasted to
reach 10.4 million tons by 2015.37 e revisions stipulated that:
Finally, the emergence of shale gas resources in both the 1. Production lines of cement clinker shall adopt a new
United States as well as China have buoyed the outlook for dry process method;
plastics manufacturers in both nations. According to a Plastics
News-quoted analyst based in Houston, Texas, China is likely 2. Production scale of cement clinker shall reach 4,000
to move quickly in capitalizing on newly-discovered shale gas tons per line each day. For underdeveloped areas where
reserves “because [the Chinese] need new energy sources very transport facilities and market capacities are limited,
fast.”38 scale requirement shall be minimum 2,000 tons per
line per day;
Although new investments valued at more than $16 billion
are expected in the U.S. aimed at exploiting local shale gas 3. Self-possessed fund shall account for minimum 35
deposits, “Chinese investment is not likely to be immediate,” percent of the total investment in the building,
in part due to the fact that “China’s most-studied shale gas rebuilding, expanding and moving of cement clinker;
elds are generally also located in the far northwest of the 4. Projects that fail to meet these standards shall not be
country, where it is costly to bring it to sizable markets either approved by authorities.39
164
