China has introduced an “environmental tax” since 2018, and its implementation has a huge impact on plastics products enterprises and waste plastics processing and utilization enterprises. For the plastics industry, environmental supervision is like a round of cleaning, big waves and sand washing, cleaning lead, can promote enterprises to increase environmental protection investment, and force backward production capacity to withdraw. In this cleaning, on the one hand, companies whose production processes fail to meet environmental standards are bound to survive. On the other hand, in the long run, the plastics industry will also have a good time for a virtuous cycle due to the elimination of backward production capacity.

The impact of the Sino-US trade war on China's plastics industry and SMEs is not that great. The list of Sino-US tariff-added goods involves chemical plastic products such as PA, PC, PVC, ABS, PE, PP, acrylonitrile, propylene, etc.; and various plastic products, injection molding machines, extruders, blow molding machines, and thermoforming equipment. , molds, etc. The US tariff on plastic products will increase from 6.3% to 25%, while China's plastic products exports account for more than 15% of domestic plastic products, and the United States accounts for more than one-third of China's plastic products exports. In terms of plastic raw materials, due to the decline in export orders of plastic products enterprises, the demand for raw materials such as polyolefins declined, resulting in an imbalance of domestic polyolefin supply and demand, and market prices fluctuated drastically. In terms of plastic machinery, the number of plastic machines exported to the United States accounts for more than one-third of China's plastic machine exports.

From the perspective of the government, Li Keqiang pointed out that in 2019, it is necessary to do a good job of hard work, and the difficulties cannot be underestimated. The confidence cannot be shaken, the enthusiasm can not be relaxed, and the long-term economic trend is not good. will not change. The state has implemented a larger scale of tax cuts, both inclusive tax cuts and structural tax cuts, with a focus on reducing the tax burden on manufacturing and small and micro enterprises. Deepen the VAT reform, which will reduce the current 16% tax rate in the manufacturing industry to 13%, and reduce the tax reduction and 2 trillion in the whole year! The downward adjustment of the social security rate in the future is expected to be launched as soon as possible, and the VAT reduction program will be more powerful, which can directly reduce the burden on private enterprises.

Recently, the G20 summit of Chinese and American leaders announced the suspension of the Sino-US trade war, but the world economy is still fragile. The environmental pressure in 2019 and the uncertainties of the Sino-US trade war still exist, and the relevant indicators of China's plastic products industry may still show a downward trend. The further improvement and implementation of environmental protection standards will continue to strengthen, and will become a catalyst for accelerated integration of the plastics industry. It is expected that after the pain, the industry will still usher in a stable development opportunity. Similarly, the trade war will force China to further deepen reform and opening up, give private enterprises the opportunity to create great development, actively adapt to the trend of industrial transformation and continue to move forward.

Foshan Shunde Huabiao Plastic Technology Co., Ltd. is a professional technology enterprise engaged in research, development, production and sales of plastic additives, plastic functional masterbatch and special modified plastics.

The cooperation suppliers of “Huabiao Plastic Technology” include MILLKEN, BASF, CRODA, Clariant, DOW, etc. The cooperative customers include CNOOC, Sinopec, Midea Group, Dongling Kaiqin Group, Zhongfu Group, Wahaha, Deguan Film, Mito Plastic Industry and so on.