China Reaffirms Intent to Try to Eliminate Scrap Imports by 2020

The statement, unofficially translated as “Good Pollution
Prevention and Control Strategy,” discusses the path towards President
Xi’s envisioned “Ecological Civilization” of a nation free of
pollution. The “Five in One” policy talks about understanding the
causes for China’s environmental crisis, the vision for a “harmonious
coexistence of man and nature,” strengthening the party’s leadership and
government’s resources to battle the crisis, pollution reduction targets and
how to promote a greener lifestyle among the people.

For
scrap trade, the statement notes the following (as unofficially translated): “China has completely banned the
entry of foreign garbage, cracked down on smuggling, drastically reduced the
number and types of solid waste imports, and strives to achieve zero imports of
solid waste by the end of 2020.”

ISRI
believes this to be a reaffirmation of policy statements made in 2017 rather
than a new policy or a new ban, although we are in the process of confirming
that. The nuances of the Chinese language, coupled with a wider understanding
of China’s overall environmental policies and motivations, give us clues that
China’s market continues to close to scrap imports because of an intent to
fulfill their own resource needs through domestic generation. The statement
comes amid the completion of the government’s reorganization and outlines the
mission of the new Ministry of Ecology and Environment. 

There
is no doubt that China’s import restrictions continue to create many challenges
for the recycling industry, especially given the short transition time. But this
statement confirms that the restrictions are here to stay. ISRI is
continuing to aggressively monitor all that is happening in China so as to
provide the latest information to members and will provide updates as soon as
additional information is available.