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This page contains an archive of all entries posted to PN China Blog - English in the Sustainability category. They are listed from oldest to newest.

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November 11, 2009

China's bag ban enforcement challenged

A PhD student in Beijing is challenging the government's enforcement of the nationwide ban of free shopping carrier bags and ultrathin bags, joined by non-government organizations that have been tracking bag usage.

Mao Da, studying environmental history at the Beijing Normal University, has been trying to have the Administration of Industry and Commerce officials publish the detailed results of the "Bag ban enforcement survey." He also inquired about the penalties received by a supermarket, which was reportedly busted for giving out ultrathin bags.

While China's administrative regulations require a response to a public inquiry within 15 business days, Mao submitted his inquiry on Sept. 22, and had not received any feedback by Nov. 10, according to the China Economic Times.

Mao is part of Action for Plastic Bags Policy (http://napbp.blog.sohu.com), a Beijing-based NGO with members from China, Japan and Sweden. Their research shows that the bag ban is implemented in 94 percent of the department stores and supermarkets, 35 percent of the smaller retail outlets and just 29 percent in farmers' markets.

Another organization, International Food Packaging Association, suggested that eight government agencies are overseeing the enforcement of the bag ban, making it less clear and less efficient. General Secretary Dong Jinshi told local media, "Some law enforcement officials are unclear about the regulations." He said, "I'm afraid the ban is not working at all in some regions [outside Beijing]."

November 24, 2009

Bioplastic firms attract investment

One of China's leading manufacturers of bioplastic products, Wuhan Huali Environment Protection Science Technology Co. Ltd., has received US$13.5 million of venture capital funding from DT Capital Partners.

At last week's signing ceremony, Huali Chairman Zhang Xianbing projected 2009 sales to reach 120 million yuan (US$17.6 million), according to the company's Web site.

The 9-year-old company in Wuhan, Hubei province, touts its annual capacity of 40,000 metric tons of biodegradable plastarch materials (PSM), which meet international standards such as EN 13432 and ASTM D6400. Its product portfolio also includes finished products and processing equipment.

Huali said it exports PSM materials and packaging products to more than thirty countries. Sales have been growing at a compound growth rate of 50 percent and higher in the past few years.

Shanghai-based DT Capital, which manages more than US$500 million in US dollar and RMB funds, said China has a greater need to develop biodegradable plastics than developed markets.

"It's difficult to predict the payback period," managing director Zhao Jun said, "but the market prospects are looking good. Huali is the leader of the industry."

Previous news reports show that Huali posted 86 million yuan (US$12.6 million) in 2008 sales and 17 million yuan (US$ 2.5 million) in net profit.

Huali's first experience with venture capital investment dates back three years, when it received $US$5 million from a Hong Kong-based firm.

Huali is not the only bioplastic firm that's gaining popularity from the investment community. According to the 21 Century Business Herald, last year, Tianjin Green BioScience Co. Ltd. received US$20 million from investors including DSM. Also, Shenzhen Ecomann Biotechnology Co. Ltd. obtained investment from Shenzhen Capital Group Co. Ltd.

A trade group official said at an industry conference that among the 200-plus bioplastic companies in China, only 20 percent make profits. "Most of them are still in the early stage of investment," Weng Yunxuan of the China Plastics Processing Industry Association was quoted as saying in news reports.

December 8, 2009

Hangzhou mulls reduction of disposable products

A popular tourism destination near Shanghai is discussing ways to encourage hotels and restaurants to cut back on disposable supplies, including toiletry items.

Personally, I don't mind if they cut back on one-time-use plastic combs or toothbrushes, but there's one item I hope they don't take away.

Hangzhou, the capital of Zhejiang province, is famous for the West Lake and other natural scenery. Local tourism bureau officials said this week that hotels could use incentives like complimentary breakfasts or souvenirs to make up for the reduction on disposable supplies, according to local newspapers.

This one item that I actually use and hope to continue to use is disposable slippers, something I've never seen in America. From US$20 a night inns to five-star global chain hotels, all hotels in China offer disposable slippers, made of materials ranging from paper-thin plastic nonwoven fabric to cushioned terry cotton.

I understand why hotels in America provide, say, coffee makers, while the Chinese hotels don't. But is the need for disposable slippers a cultural or regional matter?

Back to the main subject, the hotels could probably start the green initiative by having customers request specific disposable items that they need, still free of charge, when they make reservations or check in. It may be some extra work for both the customer and the hotel, but still worthwhile for the sake of eco-friendliness.

December 11, 2009

Chinese bank launches biodegradable credit cards

China's Shenzhen Development Bank has launched two sets of biodegradable credit cards, which are said to be able to break down to water and carbon dioxide. The bank said one of the green-themed sets comes with paperless statements only, another way to protect the environment.

It's unclear what specific material(s) the cards are made of. But the bank started issuing the first set of four "Beauty Cards" in November, targeting environmentally conscious female consumers.

The second set of four "Green Cards" made a debut in Beijing this week. These cards use electronic statements exclusively, the bank said on its Web site. Users can choose to receive an email newsletter on environmental protection from the bank. They also have the option to redeem membership points for "green products."

According to a report from the Xinhua News Agency, China had issued 170 million credit cards by the end of 2008.

By using the images on the bank's Web site, I compiled this low-resolution photo, just to give you an idea how the collection of "Green Cards" looks. (Yes, these are vertical cards.)
Cards.JPG

January 4, 2010

Sichuan recycling plastic temporary homes

625,000 is the number of plastics makeshift housing units that were built in Sichuan province after the magnitude 8.0 earthquake in 2008. As reconstruction progresses, these plastic structures have fulfilled their duties and are being taken down.

It costs 260 yuan (US$38.1) to dissemble a 20-square-meter (215.3-square-foot) unit and another 400 yuan (US$58.6) to reassemble it elsewhere, plus transport expenses, local authorities were quoted as saying in a report by the Chengdu Business Newspaper. It's also costly to warehouse and manage the unneeded ones. Therefore, it makes good sense to recycle the plastic homes.

Philanthropist Chen Guangbiao, who runs a recycling business -- Huangpu Group - in Jiangsu province, recently announced in Mianyang city that he has invested 30 million yuan (US$4.4 million) and put in place 20 mobile recycling stations, which combined can process 5,000 plastic housing units every day. Chen said the recycling service is free of charge.

February 11, 2010

Realities facing the housewares industry

Here is my quiz of the day for you: do U.S. households spend the most on A. housewares, B. dairy products, or C. fruits and vegetables?

The answer, according to the International Housewares Association (IHA), is that U.S. households spent more on housewares than on dairy products, and just slightly less than on fruits and vegetables.

In its fresh-off-the-press State of the Industry report, IHA said the average U.S. household spent $609 on housewares in 2008.

Based on data from its annual membership survey and government stats, IHA gave some good insights that may help U.S. manufacturers to better position themselves:

• More than half (58 percent) of IHA member companies produce all their products offshore. Another third (34 percent) make some products in the U.S.
• Virtual retailers distributed 13 percent of the 2008 housewares sales, which was slightly down from 2007, but gains were seen from manufacturers' direct-to-consumer Web sites.
• Housewares manufacturers may need to follow their audiences closely as they "migrate from the traditional print media to online options."
• Consumers are becoming thriftier and more price-sensitive for the immediate future.

I look forward to covering this year's International Housewares Show, scheduled for March 13-16 at Chicago's McCormick Place, with my colleague Rhoda Miel. Our past coverage focused on latest global business and design trends, Made-in-USA products, sustainability, and so on.

Moreover, we plan to do some video reporting at this year's show. We welcome news leads and ideas.

March 9, 2010

Sichuan firm expands export to ASEAN

A bio-plastic manufacturer in Chengdu, Sichuan province, is ready to take advantage of the China-ASEAN (the Association of Southeast Asian Nations) free trade agreement and increase its export of bio-resin film.

Ye wenbin, general manager of Sichuan Corn-T Biology Technology Co. Ltd., has come up with a business plan to export PLA film to ASEAN countries, where the film is processed into bags and then exported to Europe.

Under the free trade agreement, which started on Jan. 1, China and the six richest ASEAN members -- Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand -- eliminated tariffs and barriers to investment on more than 90 percent of the products traded between China and ASEAN, or more than 7,000 products. The zero-tariff status is expected to extend to the four new ASEAN members -- Cambodia, Laos, Myanmar and Vietnam -- by 2015.

Thanks to the zero-tariff, Ye told the Western China Metropolis Daily, orders from Singapore, Thai and Malaysia are on the rise.

Corn-T makes both PLA resin and film, according to a speech Ye gave last year. The company priced PLA film for 30,000 yuan (US$4,394) per metric ton and claimed annual sales of 6 million yuan (US$878,818).

The China-ASEAN free-trade agreement is the world's third-largest regional agreement in terms of economic value, after only the EU and NAFTA.