Page 230 - 2017 White Paper
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7 White Paper on the Business Environment in China
for completion in 2015. The first phase focused on an checks have suspended the import licenses of 247
area covering 53 hectares and investment of 912 million companies” (Earley 2013).
yuan to develop facilities for retrieving and sorting scrap
materials, trading, processing, distribution and shipping, The revocation of those licenses is expected to “force
anti-pollution measures, waste management training, smaller outfits out of business, making environmental
scientific and technological research and development, regulation easier for the government” (Guilford 2013).
and public services. Phase two involved the construction
of a 26.5 ha deep processing area at a cost of 515 million Whereas “China’s demand for low-cost recycled raw
yuan. And phase three, covering 253 ha and costing 2 materials has meant waste shipments from Europe, the
billion yuan, will expand the park’s resource-retrieval and US, Japan and Hong Kong arrived thick and fast, with
deep-processing capabilities”. scrap becoming the top US export to China by value
($11.3bn) in 2011” (Earley 2013), the new policy appears
China Recycling Development, China’s top recycling to have motivated American and European industry
company, was founded with State Council backing in May players to explore more extensive recycling operations
1989. In addition to Neijiang, the report says, the company on their home turfs. As a result, say some executives,
“has bases all over the country, including Qingyuan, China may have sparked a new wave of innovation in the
Guangdong Province; Luoyang, Henan Province; industry (Guilford 2013).
Changzhou, Jiangsu Province; Linyi, Shandong Province;
Lingwu,Yinchuan in the Ningxia Hui Autonomous Region;
Tangshan, Hebei Province; Xian, Shaanxi Province; and
facilities in Heilongjiang and Jiangxi Provinces”.
The report points out that recycling permits in China
are difficult to obtain, issued only in limited numbers
on a provincial basis, which accounts for the pseudo-
monopoly of CRD and fragmentation of smaller players.
That CRD has national coverage, says the report, “is proof
that it has full state approval”.
According to the report, “Neijiang no doubt hoped
to formalize the sector by inviting one of China’s leading
companies to the city. Plans call for the recycling park
in Niupengzi to recycle 1.85 million tons of resources a
year from 2 million electrical and electronic devices and
50,000 scrapped automobiles. This, it is hoped, should
generate sales of 10 billion yuan and profits of 200 million
yuan, creating 1.9 billion yuan in tax revenue and jobs for
20,000 people”.
China’s “Green Fence”
China “sent shock waves through the global recycling
market [in February 2013] when it announced it would
no longer be accepting poorly sorted or dirty shipments
of recyclable waste from foreign exporters” (Earley 2013).
Enforcement of the new policy, dubbed “Operation
Green Fence”, reportedly led to the rejection of “800,000
tons of recyclables or scrap” in its first seven months.
During that time, “customs officials [conducted] rigorous
230
for completion in 2015. The first phase focused on an checks have suspended the import licenses of 247
area covering 53 hectares and investment of 912 million companies” (Earley 2013).
yuan to develop facilities for retrieving and sorting scrap
materials, trading, processing, distribution and shipping, The revocation of those licenses is expected to “force
anti-pollution measures, waste management training, smaller outfits out of business, making environmental
scientific and technological research and development, regulation easier for the government” (Guilford 2013).
and public services. Phase two involved the construction
of a 26.5 ha deep processing area at a cost of 515 million Whereas “China’s demand for low-cost recycled raw
yuan. And phase three, covering 253 ha and costing 2 materials has meant waste shipments from Europe, the
billion yuan, will expand the park’s resource-retrieval and US, Japan and Hong Kong arrived thick and fast, with
deep-processing capabilities”. scrap becoming the top US export to China by value
($11.3bn) in 2011” (Earley 2013), the new policy appears
China Recycling Development, China’s top recycling to have motivated American and European industry
company, was founded with State Council backing in May players to explore more extensive recycling operations
1989. In addition to Neijiang, the report says, the company on their home turfs. As a result, say some executives,
“has bases all over the country, including Qingyuan, China may have sparked a new wave of innovation in the
Guangdong Province; Luoyang, Henan Province; industry (Guilford 2013).
Changzhou, Jiangsu Province; Linyi, Shandong Province;
Lingwu,Yinchuan in the Ningxia Hui Autonomous Region;
Tangshan, Hebei Province; Xian, Shaanxi Province; and
facilities in Heilongjiang and Jiangxi Provinces”.
The report points out that recycling permits in China
are difficult to obtain, issued only in limited numbers
on a provincial basis, which accounts for the pseudo-
monopoly of CRD and fragmentation of smaller players.
That CRD has national coverage, says the report, “is proof
that it has full state approval”.
According to the report, “Neijiang no doubt hoped
to formalize the sector by inviting one of China’s leading
companies to the city. Plans call for the recycling park
in Niupengzi to recycle 1.85 million tons of resources a
year from 2 million electrical and electronic devices and
50,000 scrapped automobiles. This, it is hoped, should
generate sales of 10 billion yuan and profits of 200 million
yuan, creating 1.9 billion yuan in tax revenue and jobs for
20,000 people”.
China’s “Green Fence”
China “sent shock waves through the global recycling
market [in February 2013] when it announced it would
no longer be accepting poorly sorted or dirty shipments
of recyclable waste from foreign exporters” (Earley 2013).
Enforcement of the new policy, dubbed “Operation
Green Fence”, reportedly led to the rejection of “800,000
tons of recyclables or scrap” in its first seven months.
During that time, “customs officials [conducted] rigorous
230
