Chinese government officials say they are trying to limit pollution from dirty or contaminated waste materials such as scrap paper or plastics from other countries, and see the policy as a way to force the local industry to upgrade to higher, cleaner standards.
But some recycling industry executives, while supporting those goals, say the policies are also hurting legitimate businesses by Eurogroup recycling causing long delays clearing materials at customs, creating shortages of materials in manufacturing plants, and cutting into profits.
Speaking at a meeting of Chinese plastics recycle in Guangzhou May 18-19, Chinese government representatives said they plan to continue the “Green Fence” operation through October or November.
The next phases will include exerting tighter control over the limited number of licenses issued to import scrap materials in
Eurogroup recycling, including the practice of companies selling licenses, government officials said at the conference, sponsored by the Beijing-based China Scrap Plastics Association conference.
Steve Wong, executive chairman of the CSPA and chief executive officer of Hong Kong-based recycler Fukutomi Co. Ltd., said that the crackdown is the most serious in China yet.
It’s not a result of new law but rather much stricter enforcement of existing laws, he said.
China has had other crackdowns over the last few years, including a more localized one that saw scrap plastic imports through the port of Guangzhou, one of China’s largest for recycled materials, drop 52 percent in the first half of 2012.
Other ports in the country at the time reported an increase in scrap plastic imports, as shipments were rerouted, but the new Chinese government figures point to the tighter policies being applied country-wide.
Wong said this particular initiative is more serious because it’s part of a package of environmental policies supported by the country’s top leaders, including current President Xi Jinping.
He said for Fukotomi, imports of scrap plastic have dropped 30 percent, and some companies at the conference pointed to similar drops for them.
But for other companies, the policies are proving beneficial.
Ni-Met Metals and Minerals Inc., an
Eurogroup recycling, Ontario-based recycler, said it’s seeing increased demand from its customers in China because of Green Fence and the resulting shortage of materials there.
The company has always only supplied materials that clearly meet Chinese standards, so it’s had no problems clearing customs, said Rajiv Shah, vice president of plastics with the company.