The new plastic restriction order has been released, and biodegradable materials welcome a springtime in the industry.

On January 19, 2020, the National Development and Reform Commission and the Ministry of Ecology and Environment released a new version of the plastic restriction order - "Opinions on Further Strengthening Plastic Pollution Control." Preliminary statistics on the production capacity of major domestic biodegradable plastic enterprises indicate that China's annual production capacity for biodegradable plastics exceeded 520,000 tons in 2019, and it is expected to double by 2021. The new plastic restriction order is being enforced nationwide. In 2008, the State Council issued a notice on restricting the production, sale, and use of plastic shopping bags, prohibiting the production, sale, and use of ultra-thin plastic bags nationwide starting June 1, and implementing a paid usage system for plastic bags. This was the first nationwide implementation of a "plastic ban" policy, but its effectiveness was limited as it only restricted ultra-thin shopping bags. In November 2015, Jilin Province became the first province to comprehensively ban non-degradable plastic bags and plastic utensils; in April 2018, Henan Province gradually prohibited the use of disposable plastic products; in February 2019, the Hainan Provincial Government issued a plan to comprehensively ban the production, sale, and use of disposable non-degradable plastic products, becoming the third province to implement a plastic ban. The new version of the plastic restriction order released on January 19, 2020, outlines three phases of implementation goals and restrictions on plastic use in four key areas (non-degradable plastic bags, disposable plastic utensils, disposable items in hotels, and fast plastic packaging). The biodegradable materials market is gaining momentum. The EU region has been proactive in promoting biodegradable plastics globally. Since 2011, developed countries in the EU have introduced a series of policies to restrict the use of disposable plastic products. In October 2018, the EU passed what is known as the "strictest plastic ban in history," prohibiting the use of disposable plastic products and quantifying future planning goals to ensure that all plastic packaging in the EU market can be reused or recycled by 2030. Thanks to the promotion of the plastic ban policy, Europe has long been a major consumer market for biodegradable plastics globally. Most of China's biodegradable plastic production is exported to Europe. According to IHS data, in 2018, the demand for biodegradable plastics in Western Europe accounted for 55% of the global total, while Asia and Oceania (Australia and New Zealand) accounted for about 25% of global consumption, with China accounting for approximately 11.7% of the demand for biodegradable plastics. With the release of the new plastic restriction order in January 2020, China is expected to become a new major consumer market for biodegradable plastics in the coming years. According to the European Bioplastics Association, the global annual production capacity for bioplastics was 2.114 million tons in 2019, with an annual production capacity for biodegradable plastics of 1.174 million tons, a year-on-year increase of 9.0%. Asia is an important large-scale bioplastics production region, accounting for 45% of the global total. Preliminary statistics on the production capacity of major domestic biodegradable plastic enterprises indicate that China's annual production capacity for biodegradable plastics exceeded 520,000 tons in 2019, and it is expected to double by 2021. Whether the new "plastic restriction order" will increase support for biodegradable plastic products while cracking down on disposable plastic products has become a key concern in the industry.

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