Food plastic packaging companies face life and death test

Since January 1, 2008, China launched a strict enforcement of the QS (Quality and Safety) certification system for food-related products, including 39 categories of plastic packaging, containers, and tools. This initiative aims to ensure that only certified products are allowed in the market. Industry experts estimate that this regulation could eliminate more than half of the current players in the food plastic packaging sector. According to the General Administration of Quality Supervision, Inspection, and Quarantine (AQSIQ), the enforcement will be rigorous. Starting from January 1st, any product that fails the QS audit cannot bear the QS logo. Additionally, products without the logo manufactured after that date will not be permitted to circulate or be sold. Companies found selling unlicensed goods may face severe penalties. As a result, many businesses began preparing for the audit as early as the first half of 2007. Shen Lan, manager of Beijing Lanjie Industry & Trade Co., Ltd., shared that they successfully passed the audit on December 28, 2007, after investing over 2 million yuan in the process. The QS audit imposes strict standards on food packaging, making it a challenging task for companies that previously operated under less stringent factory regulations. Shen added that their entire facility—from warehouse to building—was essentially rebuilt to meet the new requirements. In contrast, smaller and less competitive companies have struggled. Wang Yongren, director of the China Plastics Association’s expert committee, noted that only nine companies in the plastic woven bag industry have passed the audit. While the QS system is expected to streamline the industry and eliminate outdated production capacity, it has also created a supply gap. For example, if there is insufficient supply of plastic woven bags used for packaging flour and rice, it could lead to serious shortages. Currently, the AQSIQ focuses its unlicensed investigations on 28 types of food products. Although the investigation into food plastic bags has not officially begun, a transitional period of 1–3 months is expected. Li, a vendor at Fairview Land Wholesale Market, mentioned that the market is still dealing with last year's stock, and customers have not yet demanded the QS logo. Meanwhile, companies like Beijing Yanqi Central Chemical Co., Ltd., which supplies food factories and supermarkets, have already seen increased demand for QS-certified products. Pan Jiayi, general manager of the company, said that large food manufacturers are now requiring QS logos on special trays, signaling a shift in market expectations. Liu Guanqing, chairman of Shenzhen Xunbao Investment Development Co., Ltd., believes that faster implementation of the QS system would benefit certified companies by clearing the market of counterfeit and low-quality products. Shen Jie of Lanjie Company also expressed hope that the regulation would reduce competition from inferior products. However, some small-scale companies unable to meet the standards are preparing for a "guerrilla warfare" approach. A Beijing-based producer of disposable plastic bowls estimated that the audit cost would reach nearly 200,000 yuan, which many companies can't afford. One official admitted, “As long as the enforcement isn’t strict, someone will buy it, so I’ll dare to produce it.” Dong Jinshi, a quality inspection expert, noted that currently 1,280 companies in the food plastic packaging industry have passed QS certification. To meet market demand, this number needs to reach over 1,500. He believes that in the long term, the QS system will continue to strengthen, and those who fail to comply will eventually be eliminated from the market.

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