The Impact of China’s Tightening Environmental Regulations on International Waste Trade and Logistics

• Main Authors: Trang Tran, Hiromasa Goto, Takuma Matsuda
• Format: Article
• Language: English
• Published: MDPI AG 2021-01-01
• Series: Sustainability
• Subjects: waste plastic; used paper; import ban; import license; international waste trade
• Online Access: https://www.mdpi.com/2071-1050/13/2/987

In recent years, China’s influence as the dominant importer of waste products has reshaped global waste trade through restrictive programs such as Operation Green Fence in 2013 and National Sword in 2017. These restrictions have greatly affected not only China’s import of waste products but also the international trade and global logistics of these products. China’s import restrictions in 2017 decreased the country’s import of waste plastic by 92% and used paper by 56%. It also increased the unit value of these two categories of waste by 27% and 13%, respectively, showing an improvement in the quality of imported waste. Most of these impacts originate from intensive margins. The restrictions diverted the flow of waste mostly to the low- and middle-income countries of the East Asian and Pacific regions along with Europe and Central Asia, as their imports increased by 161% and 266% for waste plastic and 101% and 77% for used paper, respectively. Compared with Operation Green Fence, the impact of the 2017 National Sword has been much higher, with shipping companies faced with a lack of products on backhaul routes and forced to change their longstanding practices.