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Free plastic bag ban caused industry impact
In the bustling city of Guangzhou, on Yide Road, a small 10-square-meter shop operated by Chen Qiaoling stands as a relic of a once-thriving plastic bag industry. The signboard above the door, “Huason Plastic Products Co., Ltd.,†contrasts sharply with the cramped interior. For years, this shop was part of a sprawling network of over 1,000 stores that supplied plastic bags across the south, making it one of the largest wholesale markets in the region.
Chen, who once took pride in her business, now speaks less about the trade. “The less you have, the less you sell,†she says, reflecting on the changes that have taken place. While some stalls still display colorful plastic bags, many former merchants have shifted away from the business. “If you change jobs, you still stay in the plastics industry,†one local remarked.
The transformation of the plastic bag industry was driven both by market forces and government policies. In late 2007, the State Council issued a notice banning the production and sale of plastic shopping bags thinner than 0.025 mm. By June 2008, free plastic bags were no longer allowed in supermarkets, bazaars, and malls. This policy shift forced manufacturers to adapt or face closure.
Small family-run workshops, which had thrived on low-cost production, found themselves at a disadvantage. These operations typically used second-hand machinery and recycled waste plastics, producing ultra-thin bags at minimal cost. However, the new regulations made it harder for them to compete. “Many of these factories don’t even have licenses,†Chen noted.
Despite the challenges, some entrepreneurs like Chen Qiaoling have adapted. She now offers higher-value products such as gift bags, garment bags, and handbags. “The profits are similar to what I used to make from 20 pounds of plastic bags,†she explained. This shift was partly driven by rising costs and changing consumer habits.
Industry experts believe the policy has accelerated an already ongoing transformation. “The industry is upgrading, and the policy is pushing companies to do so,†said Chen Jianzhen, secretary-general of the Guangzhou Packaging Technology Association. He added that while the ban on thin bags has disrupted small businesses, it has also led to greater standardization and quality control.
The new national standards, released in early 2008, set strict requirements for thickness, appearance, and labeling. These rules made it harder for small-scale producers to comply, further accelerating the industry’s shift toward more formalized and regulated operations.
Some companies, however, remain skeptical. Fu You, chairman of the Guangdong Plastics Industry Association, questioned whether simply banning thin bags would truly address environmental concerns. “Is a 2.5mm bag really better than a 2mm one?†he asked. “We need to think beyond just regulation.â€
As the industry continues to evolve, the future remains uncertain. While some see opportunity in the transition, others fear the loss of traditional livelihoods. Yet, for many, the path forward lies in innovation, adaptation, and a commitment to sustainability.