Page 226 - 2017 White Paper
P. 226
7 White Paper on the Business Environment in China
years at a time. In some cases, factories would directly hire The revisions stipulated that:
workers and force them to sign with a dispatch agency,
and over 80 percent of a given factory’s workers could 1. Production lines of cement clinker shall adopt a
be comprised of dispatched labor. Because dispatched new dry process method;
workers are technically employed by their agencies,
employers could avoid responsibility for payment of 2. Production scale of cement clinker shall reach
benefits and the risk of labor disputes. However, now 4,000 tons per line each day. For underdeveloped areas
that March 2016 regulations have come into effect where transport facilities and market capacities are
to curb these practices, companies are forced to be limited, scale requirement shall be minimum 2,000 tons
more responsible in meeting their obligations to their per line per day;
employees (Koty 2016).
3. Self-possessed fund shall account for minimum
Notable Policy Activity 35 percent of the total investment in the building,
rebuilding, expanding and moving of cement clinker;
Guidance on Cement Production
4. Projects that fail to meet these standards shall
Published by the Ministry of Construction of the PRC not be approved by authorities (中国水泥网 2011).
on November 14, 2007 and effective May 1, 2008,“Energy-
saving Standards for Cement Manufacturing Plant” Rising PowerTariff Surcharges for Energy-
(National Standard No. GB50443-2007) outlines many inefficient Production
guidelines for energy-saving steps in the manufacturing
of cement, some of which are compulsory. In May 2010, an NDRC plan to raise power tariff
surcharges for energy-inefficient industry went into
China’s cement production capacity has historically effect, whereby “local governments must cancel any
been concentrated in small plants using older favorable power prices to energy-intensive firms,
technologies and, as a result, being relatively inefficient including preferential rates in the name of direct trade
energy consumers in terms of overall output. The between power generators and power users” (Xinhua
use of more efficient technologies, combined with 2010b).
the closure of smaller, older plants in favor of higher-
volume operations, utilizing better technology will likely This plan was actually first put into practice in 2006,
contribute to energy savings and the reduction of overall according to Xinhua, but that “in order to stimulate their
environmental impact while maintaining or increasing struggling economy at the height of the global financial
overall production. This is consistent both with the crisis, some provincial governments, mainly in west
overall targets in the 11th 5-year Plan to improve energy China, started to find ways to subsidize energy-intensive
efficiency by 20 percent over a five year timeline and also enterprises in November 2008” (Xinhua 2010b).
the intended move away from highly energy-intensive
manufacturing. Further Tax Rebate Changes
This guidance likely led to the following item, new Beginning July 15, 2010, exports of 406 items (including
entry requirements for companies looking to produce some plastic products) would no longer receive export
cement. tax refunds, in a move to discourage the export of highly-
polluting and energy-inefficient goods. According to the
New Entry Criteria for the Cement Ministry of Commerce, this change was not expected to
Industry substantially affect overall export volume as the goods in
question accounted for roughly one percent of the total
In November 2010, the Ministry of Industry and (Xinhua 2010d).
Information Technology (MIIT) announced revisions to
the entry criteria for the cement industry, which became Rules for Importing Whole PET bottles
effective on January 1, 2011.
In October 2010, the Chinese government issued new
regulations regarding the import of whole polyethylene
terephthalate (PET) bottles (such as those used for soft
drinks). Previously, such imports were required to have
226
years at a time. In some cases, factories would directly hire The revisions stipulated that:
workers and force them to sign with a dispatch agency,
and over 80 percent of a given factory’s workers could 1. Production lines of cement clinker shall adopt a
be comprised of dispatched labor. Because dispatched new dry process method;
workers are technically employed by their agencies,
employers could avoid responsibility for payment of 2. Production scale of cement clinker shall reach
benefits and the risk of labor disputes. However, now 4,000 tons per line each day. For underdeveloped areas
that March 2016 regulations have come into effect where transport facilities and market capacities are
to curb these practices, companies are forced to be limited, scale requirement shall be minimum 2,000 tons
more responsible in meeting their obligations to their per line per day;
employees (Koty 2016).
3. Self-possessed fund shall account for minimum
Notable Policy Activity 35 percent of the total investment in the building,
rebuilding, expanding and moving of cement clinker;
Guidance on Cement Production
4. Projects that fail to meet these standards shall
Published by the Ministry of Construction of the PRC not be approved by authorities (中国水泥网 2011).
on November 14, 2007 and effective May 1, 2008,“Energy-
saving Standards for Cement Manufacturing Plant” Rising PowerTariff Surcharges for Energy-
(National Standard No. GB50443-2007) outlines many inefficient Production
guidelines for energy-saving steps in the manufacturing
of cement, some of which are compulsory. In May 2010, an NDRC plan to raise power tariff
surcharges for energy-inefficient industry went into
China’s cement production capacity has historically effect, whereby “local governments must cancel any
been concentrated in small plants using older favorable power prices to energy-intensive firms,
technologies and, as a result, being relatively inefficient including preferential rates in the name of direct trade
energy consumers in terms of overall output. The between power generators and power users” (Xinhua
use of more efficient technologies, combined with 2010b).
the closure of smaller, older plants in favor of higher-
volume operations, utilizing better technology will likely This plan was actually first put into practice in 2006,
contribute to energy savings and the reduction of overall according to Xinhua, but that “in order to stimulate their
environmental impact while maintaining or increasing struggling economy at the height of the global financial
overall production. This is consistent both with the crisis, some provincial governments, mainly in west
overall targets in the 11th 5-year Plan to improve energy China, started to find ways to subsidize energy-intensive
efficiency by 20 percent over a five year timeline and also enterprises in November 2008” (Xinhua 2010b).
the intended move away from highly energy-intensive
manufacturing. Further Tax Rebate Changes
This guidance likely led to the following item, new Beginning July 15, 2010, exports of 406 items (including
entry requirements for companies looking to produce some plastic products) would no longer receive export
cement. tax refunds, in a move to discourage the export of highly-
polluting and energy-inefficient goods. According to the
New Entry Criteria for the Cement Ministry of Commerce, this change was not expected to
Industry substantially affect overall export volume as the goods in
question accounted for roughly one percent of the total
In November 2010, the Ministry of Industry and (Xinhua 2010d).
Information Technology (MIIT) announced revisions to
the entry criteria for the cement industry, which became Rules for Importing Whole PET bottles
effective on January 1, 2011.
In October 2010, the Chinese government issued new
regulations regarding the import of whole polyethylene
terephthalate (PET) bottles (such as those used for soft
drinks). Previously, such imports were required to have
226
