More from Chinese reader Mr. Li You of Nanjing Wellplas Platics Co. Ltd.:

In my personal view, there are two types of plastics manufacturing. One is pure plastic products such as basins and hangers, and the other type is plastic parts and components that go into more complex and value-added products. China obviously has advantages in the first type of products, which feature steady supply, large demand and sensitivity to price points.

I can give you some examples: a 90-metric-ton, second-tier brand injection press costs only 70,000 yuan (US$10,200); in the Yangtze River delta, the monthly salary for injection press operators is 1,000-1,500 yuan (US$150 to US$220), 2,000-4,000 yuan (US$290 to US$590) for injection technicians, 3,000 yuan (US$440) for a mold technician, and just 5,000 yuan (US$730) for a mold technician with ten years of experience. Isn't that far less than even unemployment benefits in the U.S.? That's why made-in-China products are so cheap.

However, the U.S. has a tremendous advantage in the second type of plastic products, leveraging other leading manufacturing sectors and industries. In this category, quality, delivery time and communication are highly valued, as well as local services like product design, drawing and prototyping. The Chinese plastics industry doesn't have these leveraging opportunities from domestic manufacturing sectors such as medical, aviation, biochemical, etc. Since Chinese firms can't even get in the door to supply these industries, they miss all the opportunities of growing with them.

I also would like to take the auto industry as an example. Twenty years ago, when Shanghai Automotive Industry Corp. started a joint venture with Volkswagen, making Santana-branded sedans, less than 3 percent of the parts and components were supplied by domestic Chinese manufacturers. Twenty years have passed. Today, China's fast-expanding automakers are bringing mold and plastics suppliers up to speed. That illustrates how different industries support and enhance each other.

I believe that eventually China will become a leading player in the plastics industry, but definitely not through making low-value-added products like basins and hangers. The best technologies always apply first in military supplies, medical, precision systems, etc. As these sectors develop in China, the Chinese plastics industry will eventually enter the high-end markets.

The present American plastics industry, perhaps, is the future of the Chinese plastics industry.