EU dual-instruction sword refers to China's electrical new materials industry facing a green test

The EU's dual directives will inevitably bring about a huge reorganization of the entire Chinese electrical industry chain; in the face of new green trade barriers, some enterprises are in dire straits in the research and development of new products and key technological breakthroughs; It is an urgent topic inside and outside the country...

On August 13, the EU Directive on Waste Electrical and Electronic Equipment (WEEE) began to be implemented. This means that Chinese manufacturers that export various types of electromechanical products to the EU in the future will face the cost of high-volume e-waste treatment and technological upgrading. In July 2006, another EU Directive on the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment (ROHS) will also be implemented. ROHS is primarily intended to limit the use of six hazardous substances including lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls and polybrominated diphenyl ethers. At that time, non-compliant electrical and electronic products will not be allowed to enter the EU market.

Affecting the export of Chinese electrical products by USD 31.7 billion

According to estimates by the China Electromechanical Exporters Association, after the implementation of the two EU directives, China’s direct exports of electrical products will reach US$31.7 billion, accounting for 71% of the total value of China’s exports to the EU. It is understood that the EU's two green directives cover almost all electronic and electrical products, including large and small household appliances, IT and communications equipment, lighting equipment, electrical and electronic tools, medical equipment and other 10 categories of nearly 200,000 kinds of products.

At present, the EU is the main market for domestic appliance exports, and some even account for 60% of the company's exports. Industry insiders said that under the EU's environmental protection dual-guide WEEE&ROHS's comprehensive obstruction of China's electronic and electrical products, some home appliance companies will have to give up the EU market, and even some home appliance companies may be dragged down. Because Chinese companies want to meet the standards set by these two directives, they must pay the price of export products. The competitiveness of China's home appliance industry is mainly reflected in low prices. Therefore, the establishment of “green barriers” has set up a “cancer” for Chinese home appliance enterprises, especially small and medium-sized enterprises.

New materials companies face green test

Although the EU dual directives directly refer to home appliance manufacturers, the six hazardous substances prohibited by the ROHS directive are derived from raw materials. The ROHS directive first points to upstream suppliers of home appliances, so home appliance manufacturers will inevitably screen raw material suppliers. Almost all home appliance companies exporting to the EU have strengthened their environmental requirements for suppliers. In the process of re-selection of home appliance manufacturers, some suppliers with poor strength have been eliminated because they cannot meet the green standards of home appliance manufacturers.

Experts analyzed that the impact of EU dual directives on the domestic new materials industry is indirect. From raw materials to materials to parts to products, the pressure faced by new materials companies as material suppliers is mainly from the cost transfer of downstream products.

It is understood that some large enterprises in the domestic new materials industry are actively seeking countermeasures. The person in charge of the Antai Technology Marketing Department said that due to the influence of the Green Directive, downstream manufacturers requested Antai to provide environmental certification for materials products. The main problem at present is the cost of certification and management. In fact, this is insignificant for large companies, but for some small companies in the new materials industry, the technical requirements and certification fees under the 'Green Directive' will be a child. "

Insiders pointed out that both the international and domestic, the material industry will put forward higher environmental protection requirements in the future, domestic new materials companies should have this preparation. Moreover, this measure of the EU is likely to be borrowed from other countries such as the United States and Japan. This will put a severe test on China's export of mechanical and electrical products, and the additional cost will be passed on to suppliers such as the new materials industry.

Where is the way out?

The European Green Directive will put new pressure on Chinese exporters. Changing the strategy of relying on low-cost export licenses is the fundamental way for Chinese companies. In the face of “green barriers”, some large enterprises have also initiated a number of measures to actively respond. It is reported that the domestic color TV and disk drive industry, which is most affected by the ROHS directive, has begun to try new materials and new technologies, including the application of lead-free soldering technology and the conversion of electrolytic capacitor materials provided by suppliers. According to a senior executive of a listed home appliance company, in order to meet ROHS requirements, the company invested a large amount of money for research and development, thereby replacing more than 30% of the parts in the product. The insiders pointed out that the research, design and industrialized production of environmentally friendly green products for electrical and electronic equipment is the trend of the times. Domestic enterprises cannot complain too much. All upstream and downstream enterprises including new materials enterprises can only actively seek technological breakthroughs in order to finally eliminate green trade. barrier.

In addition, the extraction of useful elements from electronic waste will bring a new opportunity for the development of new materials industry, of which technological innovation is the key. Professor Liu Weiliang, vice chairman of the China Antibacterial Materials and Products Association and the Materials Department of the Jingdezhen Ceramic Institute, also pointed out that in the past our materials industry has always emphasized the production of lead-free materials, but in fact absolute lead-free materials can not be done, some new materials themselves Lead is required to improve performance. If we change our mindset and use the funds invested in the production of lead-free materials for product recycling, and do not let waste products affect the environment, all problems can be solved.

It is reported that relevant state departments are also accelerating the formulation of relevant laws and regulations, promoting technological innovation of enterprises, making our electrical products more energy-efficient, less expensive and more environmentally friendly. At present, the Regulations on the Management of Recycling and Disposal of Waste Electrical Appliances and Electronic Products are under national compulsory regulations. It is reported that the National Development and Reform Commission has reported to the State Council and it is estimated that it will be introduced in the near future.
The authenticity of this information has not been confirmed by the international electrical network, for your reference only.
From: China High-tech Industry Herald

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