China
During ISRI’s participation at the China Scrap Plastics Association (CSPA) meeting at the end of September, we heard several presentations indicating that there is currently significant imbalance between processing capacity in China compared with the domestic supply stream. While plastic bottles are widely used throughout China the postconsumer collection infrastructure is virtually non-existent. Largely, plastics processors rely upon an informal collection system in order to source material. That said, a major Chinese processor has been tasked by the national government to establish formal collection systems in the six largest cities in Northeast China (including Beijing), which will be a pilot program of sorts and serve as a model for implementation throughout the country.
In a conversation this month with the China Resource Recycling Association (CRRA), of which CSPA is a component, ReMA confirmed the fact that Chinese plastics processors are heavily reliant upon imports of plastic bottles to keep their operations running. There was consensus among the meeting attendees that although rumors of the Central Government’s intention to ban imports or plastic bottles have persisted for several years there is a very low likelihood of such a ban being imposed for the foreseeable future. Notwithstanding that consensus opinion, there was a very strong caution that diminution in quality of the material coming into China could precipitate a premature ban on imports of plastic bottles.
On the paper front, we met with the China Paper Recycling Association (CPRA), another component of the (CRRA). The good news is that China continues to need to import approximately 30 million tons of scrap paper annually, so demand for exports from the United States should remain strong. However, the CPRA was very clear that there has been an extraordinary diminution in quality of scrap paper they have imported over the past several years. This quality issue is not unique to the United States, however, they were very clear that material from single stream collection systems is one of the largest problems they face. There was also a discussion of the one-bin/Dirty MRF collection systems being proposed in jurisdictions throughout the U.S. CPRA was very clear that although they have not seen this material it would likely be very problematic for China Customs, Inspection, and Quarantine (CIQ), the Ministry level entity that is responsible for inspection of, and has the final say on, whether any load of scrap recyclables coming to China will be allowed entry.
CPRA was also anxious to establish a closer working relationship with ReMA that would allow us to cooperate on a wide range of activities including education and training and maintenance of a good trading relationship.
ISRI has also learned that there have been no significant changes in the process for obtaining or renewing the General Administration on Quality Supervision, Inspection and Quarantine (AQSIQ) exporters license for the shipment of waste and scrap materials to China for use as raw materials. While this is good news, ReMA was disappointed to learn that efforts to address the problems associated with the dual inspections required for shipments of recyclable materials to China (CCIC pre-shipment inspection and the CIQ inspection at the destination/discharge port have not been productive. It seems that while the Chinese government is very focused on building their Circular Economy there is reticence in changing the inspection process without extensive review and consideration of any alternatives. While the matter is not dead, it will likely be a much longer process than had been anticipated.