Importing Plastic Waste
There are two major reasons why China is of great importance for the world's recycling market: Firstly, the EU's environmental policy prescribes ambitious quotas for plastics that the EU itself cannot fulfil. These regulations, for example, dictate that 22.5 per cent of plastic packaging that is brought into circulation is recycled. These quotas are, in part, set even higher by national law. Since there is insufficient capacity within the EU, it needs to be found elsewhere, which leads to the second reason: China is quite simply the world's largest consumer of secondary plastics. In recent years, China has revolutionised plastic recycling worldwide.
In the mid-90s, many types of waste could only be sold at a negative market value as vendors were required to pay additional subsidies, whereas today Chinese recyclers earn higher prices. However, the unrestrained import of all kinds of waste has also had its price. Frequently, for especially poor goods, you would hear: 'This load can only go to China'. China's recycling industry has effectively enabled the EU to ensure its ambitious recycling goals.China might secure the disposal of the EU's plastic waste, but it does not want to remain the Western world's landfill.
With increasing pressures on the quality of secondary raw materials accompanied by growing political pressure, there is heightened demand for good quality raw materials. Currently, only companies that comply with the Chinese Administration of Quality Supervision Inspection and Quarantine(AQSIQ) for the import of waste into China can export to China. Goods exported are inspected by the China Commodity Inspection Corporation (CCIC). Increases in plastic imports go hand in hand with market demand. In 2007, about 10 million Chinese people were employed in the plastic recycling industry.
In the same period, China needed about 40 million tonnes of plastic, of which 14.54 million tonnes came from recycling. This supports the evidence that about one-third of total plastic consumption includes recyclable materials, as well as increased demand for secondary raw materials and hence the annual increase in quotas for imports. To read this article in its entirety, please visit BusinessForum China at www.bfchina.de.
