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  1. The driving force behind China's import of solid waste

7.1 The imported solid waste can mitigate the domestic lack of resources.

According to The Ministry of Land and Resources of People's Republic of China, compared to its biggest population of the world, China's reserves of forestry, minerals and resources are not enough. The average mineral resource per capita in China is only 58 per cent of the average mineral resources per capita in the world. In 2010, the domestic demand of the important raw materials could not be met by the domestic supply, which leading to the import of raw material from abroad.72 Many kinds of solid waste, like scrape copper, play an important role in complementing domestic production of copper to stimulate China's economic development.

7.2. The cheap labour resources in China

The recycling industry of solid waste in China can be supported by its great supply of cheap labour resources. The recycling and reuse of some kinds of solid waste, like waste paper, waste plastics, needs pre-selection and cleaning, is a labour-intensive industry, which will be of high cost in developed countries, but will be booming in China. On the other hand, the importation of solid waste can produce employment opportunities, which will lead to the economic development at local level.

7.3. The needs arising from certain industries

Due to some limits of technologies or large demand of higher quality of raw materials from certain industries, China needs to import solid waste from other countries. This can be understood by taking the example of the paper and plastic industries.

At present, there are two types of production in paper production industry: A new industry with world-scale mills producing international grade paper and equipped to use a higher percentage of mixed recovered paper than current US industry recycling mills. This sub-sector is dependent on wood pulp and recovered paper imports. It has grown 250% in the past five years. An old industry producing traditional grades based on non-wood fibres and locally collected recovered paper, mainly for the local market.

China has limited capacity to supply this rocketing demand for fibre from its domestic forestry. Logging of natural forest has been banned after a series of severe floods hit the country. The local paper industry has therefore had to turn to imports of wood fibre and recovered paper. Imports have therefore grown about ten-fold since 1992.

A similar story can be told for the Chinese plastics sector, which has received substantial new investments over the last ten years. Whilst it does have a sizeable domestic plastics production capacity, China also imports large quantities of polymers. Plastics is a large and diverse sector, with applications ranging from agricultural films used for domestic purposes through to plastics packaging for exported goods (concentrated in the Pearl River and Yangtze River deltas in the hinterland of Hong Kong and Shanghai). 73

7.4. The underdeveloped domestic collecting system

On the one hand, the underdeveloped domestic collecting system cannot ensure the stable supply of waste. Since the network of waste collecting is not fully developed, and the transportation cost keeps increasing, the cost of collecting domestic is climbing up. On the other hand, as the environmental requirement of many developed countries are very high, the overseas suppliers prefer to transfer solid waste to developing countries with looser regime of environmental protection at low price than recycling or disposing waste at high cost in their own countries.74

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