(Yicai) Aug. 14 -- China’s plastic exports surged 7.2 percent in the seven months ended July 31 from a year ago in US dollar terms, despite weak worldwide demand and a slow recovery, according to customs' data. Many Chinese plastic makers are turning to emerging markets and the growing overseas recycled plastics market to boost sales.

China’s plastics manufacturers have increased exports to Southeast Asia and makers of plastic daily commodities, whose main markets are China, Europe, and the US, are making a greater effort to expand to emerging markets.

"Plastic exports to Southeast Asia should increase noticeably this year," Jiang Nanqing, founder and executive director of the Institute of Carbon Neutrality and Circular Economy, told Yicai.

Many Chinese plastics makers have headed overseas since the import of plastic waste was banned in 2018, said Fan Yushun, who is executive vice president of a special committee on plastic recycling under China Plastic Processing Industry Association

Plastics containing a certain amount of recycled material have promising prospects now that the concept of sustainability is spreading, Fan said. Both the EU and the US have brought out legislation on reprocessed plastics.

Fan himself closed his plastics plant in China during the pandemic and set up a special-purpose plastic plant in Japan instead. He prepared for the trend in recycled plastics last year and his exports to Europe and the US surged this year.

However, most overseas plastics manufacturers still rely on China for their raw materials.

Core technologies for plastics recycling as well as experienced workers are still mostly in China, Jiang said. Moving these abroad is very hard. Therefore demand from Southeast Asia and countries in the Belt and Road Initiative will increase.

Many micro, small and medium-sized exporters of plastic products are looking for opportunities amid a downturn in the economy. After Covid-19, overseas demand for raincoats only started to rebound last year, said Sun Shunli, a cross-border e-commerce merchant. Export orders should jump 10 percent this year from 2023.

Editors: Liao Shumin, Kim Taylor