Plastics exports have begun to decline

On November 23, Li Guojun, vice president of the China Plastics Processing Industry Association, said in an interview with reporters that due to the adjustment of domestic processing trade policies and the impact of international trade barriers, exports of domestic plastic products have dropped sharply for the first time since July. At the same time, the number of imports increased. Li Guojun believes that this change in the foreign trade structure of the plastics industry will help adjust the industrial structure, reduce trade frictions, and change the current situation in which domestic plastics companies only dress one another.

The latest customs statistics also confirmed the analysis of Li Guojun. From January to October this year, China's primary plastics imports increased by 6.1%. However, the increase in the export volume of plastic products dropped from 8.9% in the same period last year to 5.2%, a decrease of 3.7 percentage points.

According to Li Guojun, for a long time, processing trade has occupied a considerable proportion in China’s foreign trade economy, but it has always been acting as a role for others to dress, and it is also easy to attract foreign anti-dumping. Plastic products are no exception. Since last year, the country has adjusted its foreign trade policy, and exports from plastic products have become restrictions from encouragement. From September 15, 2006, the state reduced the export tax rebate rate for plastic products from 13% to 11%. On July 1 this year, the export tax rebate rate was lowered to 5%. On July 23, the Ministry of Commerce and the General Administration of Customs in turn included plastic products in the newly-added export catalog of processing trade restrictions, adding a total of 1,853 10-digit commodity tax catalogs to the list of processing trade restrictions, including the tariff 150 for plastic raw materials and products. One. In particular, since the export tax rebate rate has been lowered, many plastic product companies have reduced the export of related products due to the significant reduction in tax rebates. The export volume of domestic plastic products has suddenly come down, and the import volume has increased accordingly.

According to experts, plastic products have always been a strong export product of China. Since 2001, China's exports of plastic products have been growing at an average annual rate of more than 13%, and the average annual export volume has increased by more than 25%. However, this kind of low-level trade export mainly based on processing methods is actually relying on resources and labor to exchange for low processing fees. There is no benefit in the restructuring of the plastics industry. The huge export volume and trade surplus cannot conceal the reality of winning by volume and exporting low-end, low-tech, low-value-added products. At present, there are 90,000 plastic processing companies in China, and only 9,000 plastic products enterprises above designated size.

Li Guojun said that with the adjustment of the country’s foreign trade policy, the current domestic plastic product companies have been forced to really start upgrading and restructuring their products.

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