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« Bag ban's bumpy ride (1) | Main | "30 days" with Mr. Wang »

Bag ban's bumpy ride (2)

Many know that some laws in China aren't well enforced -- or enforced at all. But in many cases, the root lies in the laws themselves. The plastic bag ban is a perfect example. During the six months between the announcement of the new directive and the actual enforcement, the government simply let the following problems and issues take care of themselves:

1. Enforcement at farmers markets, where customers are most price-sensitive. I mentioned this problem in my January 28 column, China faces hurdles enforcing bag ban. According to Chinese local media, most farmers markets across the nation are still giving away free, ultrathin plastic bags. With double-digit inflation, consumers try to stretch their money at farmers markets versus stores and supermarkets. Farmers markets are also in higher need of plastic bags than supermarkets and other retailers, as food items in the former are not packaged. Is it smart to impose plastic bag fees here at this point in time?

2. Applicability. American fast food chain KFC was "caught" by some local media providing free plastic bags for carry-out orders. However, China's Ministry of Commerce previously exempted restaurants and drugstores from the ban. But a plastics trade group was quoted by media as saying the ban does apply to some restaurants including KFC. Such misinformation adds more frustration to an already confusing policy.

3. Pricing. Authorities have stressed that retailers must sell plastic bags for more than they cost. But there's no further instruction on pricing. The cost of plastic bags also bears much ambiguity: Should the price include additional operational costs incurred during the transition from old bags to new? Or should the charge be based on the price on the invoice? Furthermore, what agency is going to regulate the charge of plastic bags at stores? Dayang reported the most expensive plastic bags in Shenzhen are 19 times the cost of the cheapest. China News Agency said that bag prices vary widely in Beijing. Are retailers being encouraged to make profits on plastic bags? Is there a limit on how much a carrier bag costs?

4. Existing ultrathin bags. If they are not allowed to be circulated and used, shouldn't the government develop a mechanism to collect and recycle them? Right now, cities are dumping ultrathin bags in rural areas, where living standards are lower and law enforcement weaker.

5. Produce bags. Chinese media have also reported that the use of produce bags has skyrocketed since June 1. Beijing Times said some consumers steal produce bags for home use, and retailers have turned a blind eye because they don't want to deal with it.

However, even with all the issues, stores have reported a significant drop in their usage of plastic bags over the first two days of the ban. Beijing Business said some large supermarkets reported that they now use only 5 percent of the plastic bags that they used prior to the ban. Plastic bag makers should continue to watch the market responses.

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