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China's statistics show that China's plastics industry increased by about 20% in 2011, about 10% in 2012, and about 8% in the first half of 2013. Considering the various incentives mentioned above, and the "Twelfth Five-Year Plan" has only been implemented halfway so far, it can be reasonably assumed that the North American plastics industry has not yet experienced the full impact of the Chinese government's current plastics industry development plan.
The 12th five-year plan released by China covers 2011 to 2015. Although industry policies cover the entire Chinese economy and are universal in nature, Chinese officials have developed specific industry-specific plans to provide more detailed guidance for key industries. Specific instructions are provided in these programs and incentives are provided for companies that follow these instructions, which can provide an answer to the overall growth of the Chinese plastics industry.
From 2010 to 2012, China's total exports of various forms of polypropylene polymers to the United States climbed from approximately $2.4 million to $13.6 million - an increase of more than 200%. Similarly, imports of primary form polyamides climbed from approximately $7.6 million to $22 million - an increase of approximately 190% over the past three years. Although the growth of these products is concentrated in the high-end market, the overall growth of plastic products is also growing.
Plastics that have increased their imports from China by 50% between 2010 and 2012 include: vinyl chloride polymers, vinyl acetate polymers, amino resins, phenolic resins and polyurethanes, primary forms of silicones, cellulose and their chemical derivatives. As well as pipes, pipes and hose fittings. In addition, there are more than 10 tariff classifications that have increased by more than 20% from China during the same period.
The growth of China's exports depends to a large extent on the policies of Chinese industry planning agencies. Beijing's elite institutions continue to issue industry policies calling for the development of specific industries and products, while lower-level governments have the task of ensuring that these goals are achieved. The prospect of personal career is unpredictable - officials responsible for jurisdiction will not be promoted if they fail to meet the economic goals of the central government.
An example of industry-related policies is the “Twelfth Five-Year” development plan for light industry, which calls for the Chinese government to help plastics manufacturers upgrade and upgrade their production lines. The program pays special attention to specific products – including agricultural films, environmentally friendly plastic packaging, pipelines and biodegradable products, as well as tax incentives and cash incentives for companies that follow the plan. The plan also calls for the promotion of government-funded mergers and acquisitions, the consolidation of weaker companies into larger ones, and the formation of more competitive entities.
Another related policy, the “12th Five-Year” development plan for the petrochemical and chemical industries, calls for further promotion of the development of engineering plastics and the listing of biodegradable plastics, special plastic alloys and environmentally friendly plastic additives as “focus”. Companies that comply with these directives will receive incentives such as cash payments, tax breaks, land acquisitions and other incentives provided by the government.
In just two short years, we are expected to see that China will have more streamlined and efficient enterprises to produce higher quality plastics. By then, the Chinese government's industry planning agencies will reassess the state of the plastics industry and introduce new policies. This means that companies in the US plastics industry will face more intense competition, not only in the Chinese market, but also in the export markets of Chinese plastic products, including the United States.
Lu'an Qingsong Masterbatch Co., Ltd. is located in the Dabie Mountains of Luan, Dongqi Road, Lu'an Economic Development Zone, covering an area of over 10,000 square meters. It was founded in 2008 and now has many advanced production lines, specializing in the production of various kinds. Environmentally friendly masterbatch, functional masterbatch, blown film masterbatch, injection masterbatch, engineering plastic modified masterbatch and enhanced masterbatch.