CPCIF and ICIS Jointly Release Research Report on the Impact of EU Circular Economy Regulations on China's Export Industries

At the recently convened 16th China Petroleum and Chemical Industry Conference (CPCIC), the China Petroleum and Chemical Industry Federation (CPCIF) and international consulting firm ICIS jointly released the report titled “Study on the Impact of EU Circular Economy Regulations on Key Chinese Export Industries Including Packaging.”

This report represents a significant collaborative achievement between the two parties in the fields of circular economy and international compliance. Released at a pivotal moment when the global circular transition is accelerating and policy and market dynamics are deeply intertwined, the study systematically analyzes the far-reaching impacts of EU circular regulations on China's export industries such as packaging, automotive, and textiles. It proposes a forward-looking Chinese solution guided by the principle of “transitioning from compliance to competitiveness,” providing crucial strategic reference for industries, policymakers, and the investment community.

China's Role in Reshaping the Global Circular Landscape China is playing an increasingly vital role in global sustainable development and circular systems. Since the implementation of the “National Gate Sword” campaign in 2018, China has driven the restructuring of global recycling flows and spurred major markets—including the EU—to accelerate the establishment of systematic circular legislation frameworks.

Pang Guanglian, Member of the Standing Committee of the CPC Committee and Deputy Secretary-General of the China Petroleum and Chemical Industry Federation, noted at the launch event that the EU will see an additional demand of approximately 5.4 million tons for recycled plastics by 2030, potentially exceeding 11 million tons by 2040. This trend not only signifies a profound shift in the EU market structure but also presents new opportunities for Chinese enterprises in recycled material supply, mutual recognition of standards, and collaborative rule-making. He emphasized that the China Petroleum and Chemical Industry Federation will continue collaborating with ICIS to explore practical, implementable Chinese solutions in areas such as recycled plastic pricing mechanisms, mutual recognition of standards, and alignment of compliance systems. This effort aims to help the industry achieve value enhancement within the new global circular economy landscape.

Key Insights from the Report: Structural Transformation from Compliance to Competitiveness

Based on ICIS's system modeling and CPCIF's policy research, the report reveals three major trends driven by EU circular regulations:

1. Regulatory mandates significantly boost demand for recycled materials.

With the advancement of legislation such as the Packaging and Packaging Waste Regulation (PPWR), EU demand for recycled polyethylene (PE), polypropylene (PP), and PET materials will rise to approximately 5.4 million tons per year by 2030 and reach about 11.5 million tons per year by 2040, becoming a key growth engine for the global recycled materials market.

2. Trade spillover effects drive China's industrial upgrading.

Chinese packaging, automotive, and textile products targeting the EU market will require an additional 1 million metric tons of recycled plastic by 2040 to meet new recycled content requirements. This will compel the supply chain to accelerate upgrades in design, certification, and traceability systems, shifting from passive compliance to proactive innovation.

3. Transforming compliance costs into strategic opportunities.

China-International Collaboration: From Conceptual Consensus to Action Synergy

At the report launch ceremony, CPCIF representatives Pang Guanglian, Man Juan, and Zhang Jiayu joined ICIS Global Consulting Director Tin Nguyen, Asia Petrochemicals Analysis Director Liu Jing,

ICIS Global Consulting Lead Tin Nguyen, Asia Petrochemicals Analysis Director Liu Jing, and China Consulting Director Zhang Lingfeng jointly illuminated the launch pillar, marking the official release of both Chinese and English editions of the report. This also signifies the formal commencement of in-depth collaboration between the two parties in policy research, data analysis, and industrial action.

ICIS Chief Content Officer and Chief Commercial Officer Ashley Byford-Bates stated in a video address that this partnership represents a significant milestone in the joint efforts of Chinese and international industries to advance sustainable development and mutual recognition of standards. Helen McGeough, ICIS Global Head of Plastics Recycling Analysis, noted that the strong alignment between Europe and China on circular economy principles will form a solid foundation for jointly establishing international rules and sharing value.

Zhang Jiayu, Director of Sustainable Development at the International Department of the China Petroleum and Chemical Industry Federation (CPCIF), stated during the announcement that recycled polymers are reshaping the global supply landscape and emerging as a new growth engine for the chemical industry. Liu Jing, Director of Petrochemical Analysis for Asia at ICIS, shared insights on the key impacts of regulations such as the EU's PPWR, urging Chinese enterprises to transition from “compliance response” to “joint rule-making.”

Man Juan, Director of the International Department and Deputy Secretary-General of the Foreign Investment Committee at CPCIF, concluded that this collaboration marks only the beginning. Moving forward, CPCIF and ICIS will deepen cooperation—from policy research to market initiatives—to jointly advance the coordinated development of the circular economy between China and Europe. This partnership will contribute more Chinese wisdom and practical international solutions to global plastic circular governance.