CHINA SPECIAL & CHINEPLAS 2022 PETplanet Insider Vol. 23 No. 03/22 www.petpla.net 33 is a hot topic within China. Although China is the world’s largest producer of rPET, accounting for around 45% of current global rPET capacity, rPET flake is almost exclusively used in the production of textiles and fibre. Within China, until now rPET in food-grade applications been heavily restricted by food standards, Czarnikow explains. Quality safety certificates are required for local manufacturers to produce food packaging materials made of plastics and paper, and very few have ever been granted for the use of food-grade rPET. However, this could change in the future. The Chinese government is pushing efforts for the circular economy, and new standards are being established. Only recently, on 1st of March, a new national standard became effective, the “Ecological technical requirements for recycled Poly(ethylene terephthalate) fibre” (GB/T 40351-2021), focusing technical requirements such as chemical residues, colourants or dyestuff. Although the food contact regulations in China are not expected to be changed in the short term, they will have a major impact on the rPET market, which is already experiencing higher demand than supply. Market situation for foreign companies Mid-January, the German Chamber of Commerce (AHK) in China, in cooperation with KPMG AG Wirtschaftsprüfungsgesellschaft, published the results of the annual “Business Confidence Survey”. Results show that confidence in the growth of the China market remains strong. German companies in China are confident about the current year: in 2021, almost 60% of companies in China reported improved business, and more than half expect an improvement of the development in their industry in China in 2022. Also, the VDMA members reported that in 2021, revenue developments in China were better than originally expected for many machinery and plant manufacturers. In spring, respondents estimated their revenue growth for 2021 at an average of 17 per cent; the autumn survey forecasted an encouraging 22 per cent. Expectations for 2022 are significantly lower at plus 10 per cent, but still at a good level. However, even a few months ago there were already some developments that cast a shadow over the China business. According to the survey conducted by the VDMA China, the shortage of raw materials and supplies, are regarded as an essential factor hampering business operations; 62 per cent of the companies see themselves affected by this. Bottlenecks in the supply of electricity posed a challenge for 32 per cent of the companies. This problem has been largely solved in the meantime. The preferential treatment of domestic competitors against the background of a political focus of the Chinese economy on itself, has become a major challenge, as it is stated by AHK. This moves the challenge from 6th to 1st place in the study’s ranking compared to the previous year. Also among the top operational challenges are ongoing travel restrictions. The strict Covid-related entry regulations increasingly induce foreign companies to localise in China. “Of course, the Russian aggression in Ukraine could not yet play a role in January [when the survey was conducted], and the effects of the war will not be seen in the order figures until March at the earliest,” VDMA economic expert Mr Olaf Wortmann comments the current development which might become the next top challenge, not only for China. EC PROCESS on energy consumption, PET RECYCLING PLANT Compact process, modular design equipment space. Sources: PETplanet Pulse, www.china.ahk.de, www.vdma.org, www.marketsandmarkets.com, www.czarnikow.com, www.chinesestandard.net, www.imarcgroup.com, www.prnewswire.com
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