#Two Sessions# Proposal from business tycoon (2)

China should set up natural rubber storage system, just like crude oil storage system, to protect China’s rubber industry, said Zhang Mingsen, vice general engineer in Sinopec Beijing Chemical Institution, on 2015 NPC and CPPCC sessions in Beijing.

On one hand, China spent a lot of money on natural rubber’s technology and replacement resource. On the other hand, China’s rubber plantation is destroying and wasted due to natural price recession in recent years, said Zhang Mingsen.

International capital manipulates NB price to years’ low, which compels China’s rubber farmers stopping rubber plant maintenance, some even cut the rubber plants to raise pepper plant instead, Zhang introduced.

Meanwhile, compounded rubber from Southeast Asia is another factor to impulse China’s natural rubber industry. Under the name of compounded rubber, those could avoid up to 20% import tax to be imported into China under zero tax rate.

In 2013, China imported compounded rubber surging to 1.54 million tons, taking one third of total rubber products’ import. In 2014, it was raised to over 1.6 million tons.

As the world’s largest rubber importer, China’s natural rubber heavily relies on import, 80% imported from Southeast Asia.

If China is bad relationship with countries in Southeast Asia, it will curb China’s rubber and tire industries’ development, Zhang said, China’s destroyed rubber plantation won’t recover without ten years planting.