Page 166 - 2015_WhitePaper_web
P. 166
5 White Paper on the Business Environment in China
Rising Power Tari Surcharges for Energy-ine cient Increased Regulatory Supervision of Plastic Recyclers
Production A round of new attention from environmental regulators
In May 2010, an NDRC plan to raise power tari on the plastic recycling trade has led the Ministry of
surcharges for energy-ine cient industry went into e ect, Environmental Protection to issue the “Imported Waste
whereby “Local governments must cancel any favorable power Plastics Environmental Protection Regulation.”44
prices to energy-intensive rms, including preferential rates in
the name of direct trade between power generators and power According to Plastics News, “ e new regulation will set a
users.”40 market entry barrier, which is 4,000 square meters of site area
and 5,000 metric tons of annual processing capacity.” e
is plan was actually rst put into practice in 2006, regulation also “divides the 1,600 or so companies [operating
according to Xinhua, but that “in order to stimulate their in the industry] into four categories and raises certain
struggling economy at the height of the global nancial requirements for each category.”44
crisis, some provincial governments, mainly in west China,
started to nd ways to subsidize energy-intensive enterprises Like many industries in China, a certain degree of
in November 2008.”40 fragmentation and reliance on low-tech production methods
has led to a proliferation of small, ine cient facilities which
Further Tax Rebate Changes may have little or no environmental oversight. According to
Beginning July 15, 2010, exports of 406 items (including one plastic recycling executive, “Many of the recycling plants
are operated by farmers, using simple technology, and are not
some plastic products) would no longer receive export safe places to work.” and that “’99 percent’ of China’s scrap
tax refunds, in a move to discourage the export of highly- plastics companies do not have equipment to properly clean
polluting and energy-ine cient goods. According to the the water they use in their factories.”45
Ministry of Commerce, this change was not expected to
substantially a ect overall export volume as the goods in Major goals of the new regulation appears to be the
question accounted for roughly one percent of the total.41 consolidation of recycling operations into ‘campuses’ which
will feature more sophisticated waste treatment facilities and
Rules for Importing Whole PET bottles management to limit the process’ negative environmental
In October 2010, the Chinese government issued new impact. Such consolidation would carry with it the additional
bene t of easier regulation and oversight of the trade.44
regulations regarding the import of whole polyethylene
terephthalate (PET) bottles (such as those used for soft A 2014 report by the Tokyo Foundation outlines China’
drinks). Previously, such imports were required to have been plans for the recycling and urban mining sector and how these
processed in some way and the import of whole bottles was developments could be key drivers for economic growth in its
forbidden.42 interior provinces. According to the report, “in May 2010,
China’s National Development and Reform Commission
e new rules “require that importers have existing and the Ministry of Finance announced a plan to develop
facilities and a current license to import recycled plastic, that pilot urban mining facilities in 30 cities within ve years—
they be located in a district designated for recycling and have with nancial assistance being provided by the central and
imported at least 10,000 metric tons of material in each of the regional governments—to obtain reusable resources from
last three years.”42 junked electrical and electronic appliances. Seven newly
developed industrial parks were identi ed as the rst group
Plastics News observes that “ e issue has been closely of such facilities: Tianying Recycling Economic Park in
watched for its potential impact on recycling streams Jieshou, Anhui; Ziya Circular Economy Industrial Park in
worldwide, and for its potential to increase China’s already Tianjin; Jintian Industrial Park in Ningbo, Zhejiang; Miluo
signi cant imports of PET. e country, for example, has Industrial Park in Hunan; Huaqing Circular Economy Park
taken more than half of the recycled PET bottles collected in in Qingyan, Guangdong; Jinmai Industrial Park in Qingdao;
the United States for each of the last four years.”42 and the Southwest Resource Recycling Industrial Park in
Sichuan. e target is for the seven to recycle 1.9 million tons
Plan for Expanded Ban on Free Plastic Bags of copper, 800,000 tons of aluminum, 350,000 tons of lead,
Since the implementation of the ban on complimentary and 1.8 million tons of plastic by 2015. Another 15 sites have
already been earmarked for phase two of the urban mining
plastic bags at retail locations in 2008, plastic bag usage has initiative.”
reportedly dropped by two-thirds. To further reduce the use
of plastic bags, the Ministry of Commerce has published a On September 22, 2008, the report says, “the Neijiang
new regulation for public feedback that would extend the ban municipal government in southwestern China and
to include restaurants, hospitals and book stores.43
166
Rising Power Tari Surcharges for Energy-ine cient Increased Regulatory Supervision of Plastic Recyclers
Production A round of new attention from environmental regulators
In May 2010, an NDRC plan to raise power tari on the plastic recycling trade has led the Ministry of
surcharges for energy-ine cient industry went into e ect, Environmental Protection to issue the “Imported Waste
whereby “Local governments must cancel any favorable power Plastics Environmental Protection Regulation.”44
prices to energy-intensive rms, including preferential rates in
the name of direct trade between power generators and power According to Plastics News, “ e new regulation will set a
users.”40 market entry barrier, which is 4,000 square meters of site area
and 5,000 metric tons of annual processing capacity.” e
is plan was actually rst put into practice in 2006, regulation also “divides the 1,600 or so companies [operating
according to Xinhua, but that “in order to stimulate their in the industry] into four categories and raises certain
struggling economy at the height of the global nancial requirements for each category.”44
crisis, some provincial governments, mainly in west China,
started to nd ways to subsidize energy-intensive enterprises Like many industries in China, a certain degree of
in November 2008.”40 fragmentation and reliance on low-tech production methods
has led to a proliferation of small, ine cient facilities which
Further Tax Rebate Changes may have little or no environmental oversight. According to
Beginning July 15, 2010, exports of 406 items (including one plastic recycling executive, “Many of the recycling plants
are operated by farmers, using simple technology, and are not
some plastic products) would no longer receive export safe places to work.” and that “’99 percent’ of China’s scrap
tax refunds, in a move to discourage the export of highly- plastics companies do not have equipment to properly clean
polluting and energy-ine cient goods. According to the the water they use in their factories.”45
Ministry of Commerce, this change was not expected to
substantially a ect overall export volume as the goods in Major goals of the new regulation appears to be the
question accounted for roughly one percent of the total.41 consolidation of recycling operations into ‘campuses’ which
will feature more sophisticated waste treatment facilities and
Rules for Importing Whole PET bottles management to limit the process’ negative environmental
In October 2010, the Chinese government issued new impact. Such consolidation would carry with it the additional
bene t of easier regulation and oversight of the trade.44
regulations regarding the import of whole polyethylene
terephthalate (PET) bottles (such as those used for soft A 2014 report by the Tokyo Foundation outlines China’
drinks). Previously, such imports were required to have been plans for the recycling and urban mining sector and how these
processed in some way and the import of whole bottles was developments could be key drivers for economic growth in its
forbidden.42 interior provinces. According to the report, “in May 2010,
China’s National Development and Reform Commission
e new rules “require that importers have existing and the Ministry of Finance announced a plan to develop
facilities and a current license to import recycled plastic, that pilot urban mining facilities in 30 cities within ve years—
they be located in a district designated for recycling and have with nancial assistance being provided by the central and
imported at least 10,000 metric tons of material in each of the regional governments—to obtain reusable resources from
last three years.”42 junked electrical and electronic appliances. Seven newly
developed industrial parks were identi ed as the rst group
Plastics News observes that “ e issue has been closely of such facilities: Tianying Recycling Economic Park in
watched for its potential impact on recycling streams Jieshou, Anhui; Ziya Circular Economy Industrial Park in
worldwide, and for its potential to increase China’s already Tianjin; Jintian Industrial Park in Ningbo, Zhejiang; Miluo
signi cant imports of PET. e country, for example, has Industrial Park in Hunan; Huaqing Circular Economy Park
taken more than half of the recycled PET bottles collected in in Qingyan, Guangdong; Jinmai Industrial Park in Qingdao;
the United States for each of the last four years.”42 and the Southwest Resource Recycling Industrial Park in
Sichuan. e target is for the seven to recycle 1.9 million tons
Plan for Expanded Ban on Free Plastic Bags of copper, 800,000 tons of aluminum, 350,000 tons of lead,
Since the implementation of the ban on complimentary and 1.8 million tons of plastic by 2015. Another 15 sites have
already been earmarked for phase two of the urban mining
plastic bags at retail locations in 2008, plastic bag usage has initiative.”
reportedly dropped by two-thirds. To further reduce the use
of plastic bags, the Ministry of Commerce has published a On September 22, 2008, the report says, “the Neijiang
new regulation for public feedback that would extend the ban municipal government in southwestern China and
to include restaurants, hospitals and book stores.43
166
