China’s Plastics Processing Industry: Economic Performance in the First Half of 2026

In 2026, the first year of the 15th Five-Year Plan, the Communist Party of China (CPC) Central Committee, with Comrade Xi Jinping at its core, has united and led the entire Party and the people of all ethnic groups across the country in forging ahead with determination and perseverance. By coordinating both domestic and international imperatives as well as development and security, China has effectively responded to various external shocks and internal challenges, with its economy demonstrating a development trend characterized by new growth drivers and an optimized economic structure. China’s plastics processing industry is not only a high-quality traditional industry and an important livelihood-oriented industry, but also a key foundation and integral component of emerging and future industries. The industry has consistently adhered to the general principle of pursuing progress while ensuring stability, actively adapted to the requirements of high-quality development, and focused its efforts on promoting the high-quality development of the industry.

In the first half of the year, despite a complex and rapidly changing domestic and international environment, the industry generally maintained stable operations. While facing multiple pressures, including significant fluctuations in raw material prices, intense market competition, and weak demand in certain downstream sectors, the industry demonstrated strong resilience and vitality through technological innovation, green transformation, and market expansion. According to data from the National Bureau of Statistics and the General Administration of Customs of China, from January to June 2026, enterprises covered by the national statistical survey of the plastics products industry achieved a total production output of 36.544 million tons, while total exports of plastic products reached US$57.74 billion. Enterprises above designated size in the industry recorded a 2.9% year-on-year increase in operating revenue and a 2.9% year-on-year increase in total profits.

(I) Overall Production

According to data from the National Bureau of Statistics of China, in the first half of 2026, enterprises included in the national statistical survey of the plastics products industry recorded a total production output of 36.544 million tons, representing a 1.5% year-on-year decline. On a monthly basis, domestic plastic products production recorded year-on-year declines for two consecutive months in May and June, indicating a downward trend in industry demand. Overall production in the first half of the year followed a “higher in the first half and lower in the second” pattern, continuing the trend seen in recent years, characterized by a peak in the first quarter followed by a decline in the second quarter.

(II) Production by Major Provinces and Regions

In the first half of 2026, the top ten provinces and regions in terms of plastic products production accounted for a combined 28.734 million tons, representing 78.6% of the national total. Among them, Zhejiang Province recorded plastic products production of 6.904 million tons, up 3.7% year on year, while Guangdong Province recorded 5.853 million tons, down 6.6% year on year. The combined production of Zhejiang and Guangdong accounted or 34.9% of the national total.

In terms of growth, Jiangxi, Anhui, Shandong, and Hunan recorded significantly higher growth rates, indicating strong capacity expansion in some provinces in central and eastern China. By contrast, Hubei Province saw its production decline by 51.6% year on year, the most significant decrease among the major producing provinces and regions. See Table 1 and Figure 1 for details.

Table 1. Plastic Products Production in Major Provinces and Regions of China, First Half of 2026

Figure 1. Share of Plastic Products Production by Major Provinces and Regions in China, First Half of 2026

According to data from the General Administration of Customs of China, in the first half of 2026, China’s total exports of plastic products reached US$57.74 billion, representing a 10.3% year-on-year increase, while total imports amounted to US$8.59 billion, up 2.1% year on year. The trade surplus reached US$49.15 billion, accounting for 8.5% of China’s total foreign trade surplus. Since the beginning of the year, despite some monthly fluctuations in export value following the Spring Festival, overall exports have maintained steady growth. See Figure 2 for details.

Figure 2. Import and Export of Plastic Products, January–June 2026

(I) Imports of Plastic Products

According to relevant tariff-code statistics from the General Administration of Customs of China, in terms of import structure, plastic plates, sheets, films, foils, strips, and flat shapes recorded the highest import value among all subcategories in the first half of 2026, reaching US$5.21 billion, a slight 0.6% year-on-year increase. Imports of plastic tubes, pipes, hoses, and fittings amounted to US$530 million, up 8.4% year on year. Imports of plastic boxes, cases, crates, and containers and their fittings reached US$560 million, down 1.2% year on year. Imports of plastic artificial leather and synthetic leather amounted to US$110 million, down 8.1%, the largest decline among the major categories. Imports of household plastic products stood at US$110 million, down 0.5% year on year. See Table 2 for details.

Table 2. Imports of Plastic Products by Subcategory, First Half of 2026

Across the nine subcategories, import growth showed a pattern of four categories recording growth and five recording declines, or otherwise relatively low growth rates. For most categories, year-on-year import growth was significantly lower than export growth, with some categories even registering negative growth.

The persistently weak growth in imports is closely related to the continued improvement of domestic supply capabilities and the accelerating impact of import substitution. In particular, imports of plastic plates, sheets, films, foils, strips, and flat shapes increased by only 0.6%, indicating that the substitution of imported products by domestically produced mid- to high-end functional films is accelerating. However, technological gaps remain in certain cutting-edge applications, making complete substitution difficult to achieve in the short term.

(II) Exports of Plastic Products

According to relevant tariff-code statistics from the General Administration of Customs of China, in terms of export structure, in the first half of 2026, exports of plastic plates, sheets, films, foils, strips, and flat shapes reached US$13.39 billion, up 18.0% year on year, ranking first among all subcategories. Exports of household plastic products amounted to US$12.84 billion, up 2.0% year on year; exports of plastic boxes, cases, crates, containers, and their fittings reached US$8.33 billion, up 11.7%; exports of plastic products for construction amounted to US$5.47 billion, up 4.1%; exports of plastic tubes, pipes, hoses, and fittings reached US$2.62 billion, up 9.7%; exports of plastic artificial leather and synthetic leather amounted to US$1.50 billion, up 4.4%; and exports of plastic monofilaments, strips, rods, profiles, and other shaped products reached US$1.01 billion, up 30.9%, the highest growth rate among all categories. See Table 3 for details.

Table 3. Exports of Plastic Products by Subcategory, First Half of 2026

All nine subcategories recorded year-on-year growth in export value. Except for household plastic products, all other categories grew by more than 4%, with five categories recording double-digit growth. This broad-based growth clearly demonstrates the continued optimization of China’s plastic products trade structure, with export momentum shifting from “scale expansion” toward “quality upgrading”, while international competitiveness continues to strengthen steadily.

(III) Major Import and Export Markets

In terms of import sources, China’s imports of plastic products were highly concentrated in the first half of 2026. Japan ranked first with imports worth US$3.00 billion, accounting for as much as 34.9% of total imports, close to one-third of the total. South Korea and the United States ranked second and third, respectively, followed by Taiwan, China, and Germany. The top five import sources together accounted for 75.0% of total imports, indicating that China’s high-end plastic products industry remains relatively dependent on developed economies such as Japan, South Korea, the United States, and Germany. Import substitution will therefore remain an important direction for industry upgrading over the medium and long term. See Table 4 for details.

Table 4. Major Import Sources of Plastic Products in China, First Half of 2026

In terms of export markets, China’s plastic products exports demonstrated a diversified pattern with multiple markets contributing to growth in the first half of 2026. By individual country, the United States ranked first with exports worth US$10.64 billion, accounting for 18.4% of total exports, and remained the largest single export destination worldwide. In addition, India, as the largest market in South Asia, ranked sixth; Germany led the European market, while Russia emerged as an important growth market. See Table 5 for details.

Table 5. Major Export Destinations of Plastic Products from China, First Half of 2026

From a regional perspective, exports to the 11 ASEAN member states totaled US$11.53 billion, accounting for 20.0% of China’s total plastic products exports and surpassing the United States to become China’s largest export region. If Japan and South Korea are included in the broader East Asian market, Asia as a whole accounted for more than half of China’s plastic products exports.

This pattern clearly demonstrates that, amid the rise of trade protectionism in Europe and continued adjustments to U.S. tariff policies, China’s plastics processing industry has effectively reduced its dependence on any single market by leveraging RCEP regional cooperation and expanding into markets along the Belt and Road. As a result, the resilience of China’s plastic products exports continues to strengthen.

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