Recyclables and waste are the sixth-largest US export to China. In 2016, almost 50 percent of its commodity-grade scrap metal, paper and plastic was sent to China, according to the Institute of Scrap Recycling Industries in Washington.
"Our industry is on tenterhooks right now because of the impact on these high-value scrap commodities, which our members send almost exclusively to China," said Adina Renee Adler, a senior director with the institute.
Some companies, such as Rogue Waste Systems, a waste collector in Oregon, have started to slow processing work to meet the higher quality standards imposed by China, and have sought help from local authorities to allow them to bury excess material in landfills, as indoor stage facilities are full.
In November, the European Union, the US, Japan, Australia and Canada questioned the broad scope of the ban and asked China for a longer transition period of up to five years, according to the statement issued by the WTO.
Domestic effect
The strengthened restrictions on some recyclable waste have also affected Chinese companies that rely on foreign recyclables, especially paper and plastics.
The Ziya Circular Economy Industrial Zone in Tianjin is the largest recycling facility in North China and was home to 387 companies by December. Now, some companies have closed or suspended activities as a result of the fall in the volume of imported waste.
"About 90 percent of the materials for companies that process plastic waste were imported, so they have been affected by the planned ban," said Tang Guilan, deputy director of the zone's management committee, adding that 96 plants used to process imported waste, but only a few are still operating.
It's estimated that next year, the zone's approved import volume of recyclables will be 118,000 tons, half the number in 2016, she said, noting that the volume of imported waste in the zone fell as stricter regulations were implemented in recent years.
Tang said the affected plants are being encouraged to turn to domestic suppliers to replace imported waste, but conceded that it will take time to shift their materials.
Some plants in Tianjin started processing imported solid waste from the US, Canada, Japan and South Korea in the 1980s, and many relocated to the industrial zone in 2003, establishing a recycling system based on the steady supply of material, Tang said.
According to Xue Tao, deputy head of the E20 Environmental Platform, a domestic environmental protection service, imported solid waste is cheaper to buy than some domestically sourced raw materials as a result of lower costs in the countries of origin.
He added that plants that rely on imported waste in other areas of China will also be affected, especially in the paper and plastics scraps industry, considering the large volume of imported recyclables.
In 2016, China processed more than 49 million tons of waste paper, with 28.5 million tons, or 57 percent, coming from overseas. Of the 18.78 million tons of plastic scraps processed in the same year, 39 percent, or 7.35 million tons, was imported, according to data from the Ministry of Commerce.
"Imported plastic and paper scraps accounted for a large proportion, thus the ban will significantly raise costs at processing plants, which will definitely have an influence on plants that rely on processed paper and plastic materials in the short term," Xue said.
In addition, stricter regulations have seen import volumes fall in recent years, which has resulted in a reduction in the number of companies processing imported waste nationwide, from 2,527 in 2013 to 1,766 in 2016, data from the Ministry of Environmental Protection showed.
