Seattle Bag Tax

China

Bans Plastic Bags

Free plastic bags were first introduced to the Guangdong province when China’s commercial sector boomed in the 1980’s. The bags were embraced for their low cost, light weight, and ability to withstand various weather conditions. However, decades of use have resulted in a use-and-discard habit; it is estimated that prior to the ban, 3 billion plastic bags were used daily across China (this roughly translates to an annual consumption of 800 bags per person, compared to 600 bags per person in Seattle).

On April 16, 2008, the Order of the Ministry of Commerce, the National Development and Reform Commission and the State Administration for Industry and Commerce met to discuss ways to reduce plastic bag usage throughout China. Their goal was to reduce “white pollution”, conserve resources and protect the environment. The government also probed for ways to encourage recycling programs, promote reuse of disposable bags, and introduce substitutes to reduce the burden on small chain stores and farmers markets.

The General Office of the State Council passed legislation to regulate the production, sale and use of ultra-thin bags less than 0.025 mm thick on June 1, 2008. Following this date, retailers were banned from providing free plastic bags to customers, despite using them for more than a decade. The State Administration of Industry and Commerce threatened to fine non-compliant retailers anywhere from 5,000 to 10,000 yuan (equivalent to $667 to $1,470 USD). Since March, the State Administration for Industry and Commerce trained and deployed 600,000 law enforcement regulators to inspect 250,000 retail stores for free plastic bags. Because the legislation only applies to thin plastic bags, the Qingdao Industry and Commerce Bureau in the eastern Shandong Province invested 60,000 yuan (about $8,780 USD) to buy 120 instruments to measure the thickness of plastic film. So far about 2,000 cases have been investigated and 2 million yuan ($300,000 USD) in fines have been issued.

Even after a year, it is unclear how successful the ban on free plastic bags has been. Plastic bags are a major export of China and the legislation has resulted in job losses in the plastics industry. Suiping Huaqiang Plastic Co. Ltd., China's largest plastic bag manufacturer, shut down last year after the bag ban was announced. The 20,000-worker company once produced 250,000 tons of bags valuated at 2.2 billion yuan (about $322 million USD) on a yearly basis, but 90% of its products were banned by the law. New labor laws also led to higher wages that the company could not afford.

Enforcement of the ban, especially in rural areas, is another challenge. One article states that although some cities handed out 65-70% fewer plastic bags, over 80% of agricultural trade markets and retail outlets in rural areas ignored the ban. Another survey by Global Village found that in Beijing, nearly 96% of open food markets continued providing ultra-thin plastic bags and nearly 85% offered free plastic bags to customers, provoked by the fear of losing customers to competitors. While the intention to curb plastic bag consumption is noble, the application, enforcement, and cost of the program is impractical.