Answer to Question #193558 in Economics for Narendra

Question

On January 1, 2018, China instituted their National Sword Policy. How did this policy affect U.S. exports to China?  

Answer 1

It is a policy in China that has banned the importation of certain types of solid waste, as well as set strict contamination limits on recyclable materials. This means that China will not accept shipments that are mixed with trash, the wrong type of recyclable, or low-quality recyclables like greasy paper goods.

However, the implementation of National Sword has reduced the rate at which these materials are imported. This has created significant logjams in the international recycling system, resulting in recycled material piling up at materials recycling facilities (MRFs) or worse, into landfills. This is effecting recycling efforts in the United States and abroad. So, the exports of US waste to China will decrease.