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6 White Paper on the Business Environment in China
economy at the height of the global financial crisis, some pro-
vincial governments, mainly in west China, started to find ways
to subsidize energy-intensive enterprises in November 2008.”40
Further Tax Rebate Changes
Beginning July 15, 2010, exports of 406 items (including
some plastic products) would no longer receive export tax re-
funds, in a move to discourage the export of highly-polluting
and energy-inefficient goods. According to the Ministry of
Commerce, this change was not expected to substantially affect
overall export volume as the goods in question accounted for
roughly one percent of the total.41
Rules for Importing Whole PET bottles
In October 2010, the Chinese government issued new regu-
lations regarding the import of whole polyethylene terephthal-
ate (PET) bottles (such as those used for soft drinks). Previous-
ly, such imports were required to have been processed in some
way and the import of whole bottles was forbidden.42
The new rules “require that importers have existing facilities
and a current license to import recycled plastic, that they be lo-
cated in a district designated for recycling and have imported
at least 10,000 metric tons of material in each of the last three
years.”42
Plastics News observes that “The issue has been closely
watched for its potential impact on recycling streams world-
wide, and for its potential to increase China’s already significant Circular Economy Park in Qingyan, Guangdong; Jinmai Indus-
imports of PET. The country, for example, has taken more than
half of the recycled PET bottles collected in the United States
for each of the last four years.”42
Plan for Expanded Ban on Free Plastic Bags
Since the implementation of the ban on complimentary
plastic bags at retail locations in 2008, plastic bag usage has re-
portedly dropped by two-thirds. To further reduce the use of
plastic bags, the Ministry of Commerce has published a new
regulation for public feedback that would extend the ban to in-
clude restaurants, hospitals and book stores.43
Increased Regulatory Supervision of Plastic Recyclers
A round of new attention from environmental regulators on
the plastic recycling trade has led the Ministry of Environmen-
tal Protection to issue the “Imported Waste Plastics Environ-
mental Protection Regulation.”44
According to Plastics News, “The new regulation will set a
market entry barrier, which is 4,000 square meters of site area
and 5,000 metric tons of annual processing capacity.” The regu-
lation also “divides the 1,600 or so companies [operating in the
industry] into four categories and raises certain requirements
for each category.”44
Like many industries in China, a certain degree of fragmen-
182
tation and reliance on low-tech production methods has led
to a proliferation of small, inefficient facilities which may have
little or no environmental oversight. According to one plastic
recycling executive, “Many of the recycling plants are operated
by farmers, using simple technology, and are not safe places to
work.” and that “’99 percent’ of China’s scrap plastics compa-
nies do not have equipment to properly clean the water they use
in their factories.”45
Major goals of the new regulation appears to be the con-
solidation of recycling operations into ‘campuses’ which will
feature more sophisticated waste treatment facilities and man-
agement to limit the process’ negative environmental impact.
Such consolidation would carry with it the additional benefit
of easier regulation and oversight of the trade.44
A 2014 report by the Tokyo Foundation outlines China’
plans for the recycling and urban mining sector and how these
developments could be key drivers for economic growth in its
interior provinces. According to the report, “in May 2010, Chi-
na’s National Development and Reform Commission and the
Ministry of Finance announced a plan to develop pilot urban
mining facilities in 30 cities within five years—with financial
assistance being provided by the central and regional govern-
ments—to obtain reusable resources from junked electrical and
electronic appliances. Seven newly developed industrial parks
were identified as the first group of such facilities: Tianying
Recycling Economic Park in Jieshou, Anhui; Ziya Circular
Economy Industrial Park in Tianjin; Jintian Industrial Park in
Ningbo, Zhejiang; Miluo Industrial Park in Hunan; Huaqing
trial Park in Qingdao; and the Southwest Resource Recycling
Industrial Park in Sichuan. The target is for the seven to recycle
1.9 million tons of copper, 800,000 tons of aluminum, 350,000
tons of lead, and 1.8 million tons of plastic by 2015. Another
15 sites have already been earmarked for phase two of the urban
mining initiative.”
On September 22, 2008, the report says, “the Neijiang mu-
nicipal government in southwestern China and China Recy-
cling Development Co., the largest resource recycling company
in the country, reached agreement on the construction of the
Southwest Recycling base, and on November 14 they signed
a contract calling for an initial investment of 3.4 billion yuan
to develop a recycling park spanning 3.3 square kilometers to
function as the core facility for the recycling base.The base is
a colossal project that will make it the largest recycling center
in the southwest, comprising a market covering some 53.3 km2
and another area for the deep processing of recycled resourc-
es covering 26.7 km2. The core recycling park is being built in
three phases over five years and is scheduled for completion
in 2015. The first phase focused on an area covering 53 hect-
ares and investment of 912 million yuan to develop facilities