China’s Plastics Recycling Enterprises Plan to Transfer Business

China's plastics recycling enterprises are interested in recycling operations in the U.S. because of the prohibition on imported waste plastics (hereinafter referred to as “Prohibition”).

However, Huang Chuqi, the chairman of Fukutomi Company Ltd., believes that some enterprises are more concerned with looking for alternatives in Asia and can quickly establish recycling operations.

Currently, Mr. Huang lives in Los Angeles and has a recycling operation in Asia, helping explain how China's Prohibition affects the global plastic recycling industry which relies heavily on China’s market.

He said: "In Asia, things are not so complicated. When they engage in recycling business in Vietnam, Malaysia, and Thailand, they only need to rent a warehouse and handle business licenses. And the governments in these areas are very cooperative and will not chase you out."

However, in the U.S., the process of establishing a recycling business is more complicated. It is not easy for the Chinese to obtain an operating permit here.

Another obstacle that affects recycling companies operating in the U.S. is that if recycled plastics are exported to China, they face tariffs, while if those are exported from other Asian countries to China, there is no tariff.

For companies such as Fukutomi Company Ltd., who operates business in mainland China and Hong Kong, maintaining operations in Asia is conducive to success. But it will be challengeable to select new address in the U.S. and conduct recycling business.