China eyes EU PPWR compliance as demand for recycled materials accelerates

As the industry prepares for the EU’s Packaging and Packaging Waste Regulation (PPWR), demand for recycled materials is rising. A recent report by the Independent Commodity Intelligence Services (ICIS) and the China Petroleum and Chemical Industry Federation (CPCIF) finds that this trend presents Chinese producers with an opportunity to align with EU standards early on and invest in R&D for recycled and bio-based materials.

Packaging Insights speaks with report authors Helen McGeough, global lead for plastic recycling at ICIS, and Guanglian Pang, executive board member and vice secretary general at CPCIF, to discuss how Chinese trade with the EU can remain competitive in the face of upcoming regulations. 

Can China close its regulatory and traceability gap with the EU without losing its competitive edge?

McGeough: Compliance with circularity regulations requires investment and a commitment to changes within the operating model, which can increase costs in the short term. However, the benefits are substantial for both companies and markets alike. 

Greater alignment in standards will deliver more consistent quality and traceability in recyclates. The cost structures between the regions differ considerably, and while this will impact margins, it is unlikely to tip the balance unfavorably for China’s exports.

Is China’s industrial sector prepared to comply with EU regulations?

Pang: China’s industry views the circular economy as a shared global mission and is ready to work with partners, including the EU, on the basis of equality, mutual trust, and shared benefit to advance standard alignment and closed-loop cooperation. Environmental regulations should serve as bridges for investment and innovation, rather than act as implicit trade barriers.

China advocates a policy framework that is both ambitious and inclusive — pursuing high standards while accommodating different national realities, and promoting collective progress through capacity building and technological cooperation.

How do Chinese manufacturers ensure their materials are EU compliant?

Guanglian Pang, executive board member and vice secretary general at CPCIF.McGeough: The requirements for compliance within the European market are still emerging in some areas of new regulation, with delegating acts yet to be released, for instance, for PPWR. However, there are schemes and auditors supporting exporters with registrations in areas requiring certification. 

The obligations can run deep across the full recycling chain. From original materials (for example, resins compliant with the EU’s regulation on the Registration, Evaluation, Authorisation, and Restriction of Chemicals) to post-processing of recycled materials under Food Contact Materials 2022/1616, the process is not without complexity. However, it is not restrictive for recycling suppliers outside the EU.

How can China balance high standards with practical support for SMEs?

Pang: The ICIS–CPCIF Joint Report embodies international collaboration and mutual openness. Chinese enterprises not only ensure compliance but also engage in shaping global rules, contributing practical solutions to the sustainable transformation of global supply chains.

Looking ahead, China will balance “rigor” with “pragmatism”: upholding high standards and effective implementation while enabling participation and benefit for small and medium-sized enterprises. The circular economy offers a shared opportunity for global prosperity — through joint innovation and material circularity, all nations can unlock economic value, reduce environmental impact, and move toward a more sustainable future.

Can EU-compliant packaging help unify global recycling standards?

McGeough: The more aligned standards within the recycling market become, the greater the progress that can be made toward achieving circularity of plastics. It is unrealistic to claim that one size fits all. Local markets will need to meet local needs, given the diverse infrastructures surrounding packaging formats and materials, waste management, energy profiles, and logistics. 

However, having a set of standards that guides markets toward best practices and innovations does not preclude developments that feed back into continual improvement in and development of a set of global standards. The EU may set a standard today, but markets across the globe are at different stages of the journey toward circularity, and it will take some time to shift from fragmentation to more aligned standards.

How will China’s domestic reforms redefine its role in the global circular economy?

McGeough: China has a strong institutional and regulatory foundation, but as the report identifies, there are also areas for improvement. The transition to a global circular economy needs to build on that foundation with regulatory drivers, infrastructural transformation, and alliances across value chains. 

China is a market that can be flexible with change, adapting quickly to new conditions, as demonstrated by the positive response to date, with industry investing in new circular materials. China has a track record of achieving high levels of success in its goals, capable of driving deep-rooted transformation rapidly. 

If the aim is to shift to greater circularity, then it can be expected that, if all the pieces are put into place, China will be a key contributor to the global circular economy.