On Jan. 6, 2013, China’s State Council issued the 12th Five-Year Plan for Biological Industry Development, which reveals that the Chinese government has begun to attach importance to raw materials and consumption.

1. 12th Five-Year Plan for Biological Industry Development published
Summary: On Jan. 6, 2013, China’s State Council issued the 12th Five-Year Plan for Biological
Industry Development, which reveals that the Chinese government has begun to attach importance
to raw materials and consumption.
Tags: five-year plan, biological, Polyurethane, Chitosan fiber, PLA, Succinic acid, BDO, Castor
oil
On Jan. 6, 2013, the State Council of the People’s Republic of China issued the 12th Five-Year
Plan for Biological Industry Development (the 12th Five-Year Plan), covering the biological
industry’s seven sub-sectors—biological medicine, biological medical engineering, biological
agriculture, biological manufacturing, biological energy, biological environmental protection and
biological service sectors, according to Biomaterials China News 1301 issued on 8 January by
CCM.
Specifically, the plan for the biological manufacturing sector is shown below.
Target:
1. To achieve the production of a batch of important biological products from non-grain feedstock;
2. To achieve a capacity of biological materials of 1 million t/a by 2015;
3. To achieve a capacity of biological products of 10 million t/a by 2015.
Content:
1. Industrial demonstration of non-grain industrial sugar: promoting the R&D and application of
high quality, large-scale preparation technologies including the processing technology of biomass
such as tuber crops, straw and corn, and enzymatic saccharification, constructing non-grain
industrial sugar industrial demonstration lines, and forming the large-scale supply of non-grain
fermentable sugar.
2. Industrial demonstration of biological chemicals: promoting the industrial application of
microbe-engineered bacteria and thermochemical technologies, constructing large-scale
production lines of biological chemicals such as alcohol, organic acid, biological olefin and its
derivatives, and improving the competitiveness of biological chemicals compared to petroleum
products.
3. Industrial demonstration of biological materials: promoting the development and application of
biological materials’ biological and chemical polymerization technologies, constructing
demonstration production lines of biological plastics and fibers, such as polylactic acid (PLA),
poly butylene succinate (PBS) and polyhydroxyalkanoate (PHA), and promoting the application of
biological materials.

2. Policy:
1. Establishing an authentication mechanism for biological products;
2. Introducing an incentive policy for the consumption of biological products;
3. Researching a system for rationing agricultural raw materials for the industrial sector.
Compared to the 11th Five-Year Plan for Biological Industry Development (2006–2010), the 12th
Five-Year Plan reveals that the Chinese government attaches importance to the development of the
whole industry, not just the technology, and it pays more attention to raw materials and
consumption. The 11th Five-Year Plan for Biological Industry Development only included
encouraging biological products and stated the government’s support for their large-scale
production.
In the 12th Five-Year Plan, China pays more attention to raw materials of biological products, and
specifically emphasizes the production of sugar from non-grain crops. In general, corn is the main
raw material for most biological materials due to its excellent properties. However, too much corn
has been consumed by industrial production in the last two years, which led to a significant
increase in the corn price, so China is trying to limit corn consumption in the industrial sector.
Researching a system for rationing agricultural raw materials for the industrial sector is a new
initiative, which may help restrict corn consumption in processing industries and encourage the
consumption of non-grain crops in the industrial sector at the same time. In the future, more
cassava, straw and potato may be used as a feedstock of biological materials.
Meanwhile, the Chinese government is also focusing on the consumption of biological products
and is attempting to encourage domestic consumers to use them. Although China is already a large
producer in the biological industry, most biological products are exported to developed countries
and the output is far smaller than the capacity due to limited domestic consumption.
Once an authentication mechanism has been established to judge whether a product is
biodegradable and test its degree of degradation, producers will be able to set a reasonable price
for different degrees of degradation, and it will also be easier for consumers to purchase real
biological products. This mechanism will help consumers build confidence in this industry and
protect the profit margin of those high degradation products.
The 12th Five-Year Plan reveals that the Chinese government is working on related policies that
can help the biological industry become mature and maintain sustainable development.
PBS has been added to the list of encouraged biological materials in the 12th Five-Year Plan due
to its biodegradable properties and comprehensive performance. Currently, there are five
producers producing these products and there are another two new production lines under
construction.
It is also worth noting that it is the first time that the Chinese government has listed biological
service as an independent industry. The government plans to construct national biological
resources and an information technology network service system and form an information service

3. capability for the biological industry.
Source from: Biomaterials China News 1301
http://www.cnchemicals.com/ResearchCenter/Newsletter/245/Biomaterials-China-News
Table of contents of Biomaterials China News 1301:
Overview of Chinese insecticide in 2008
Shandong Dacheng to post deficit in 2008
Wuhan Wudalvzhou expanding 4,500t/a virus insecticide production
Anhui Huaxing to build 5,000t/a chlorpyrifos production line
Chizhou Sincerity to expand ethyl chloride
China’s meadow moth stricken area hit new record in 2008
Harbin’s forest hit by insects to reach 18,700 ha. in 2009
China’s insecticide demand to increase 8.5% in 2009
Toluene price change in 2008
Monthly price of key raw materials in China in Jan. 2009
Monthly factory price of main insecticides in China in Jan. 2009
Monthly Shanghai port price and FOB Shanghai of main insecticides in Jan. 2009
Most Chinese insecticides witness continuous price fall
Avermectin price movement in 2008
China’s insecticide export price up 26.5% in first 9 months
A new biopesticide formulation passes evaluation
Registration situation of profenofos in China
China’s insecticide registration situation in December 2008
Anhui releases schedule on controlling wheat pest insects
Jiyuan Baiyun registers plutella xylostella granulosis virus insecticide
China’s first environmental friendly production line of pesticide built
Zhejiang Forest College clones 8 genes resisting diamondback moth successfully
Bayer’s registration of flubendiamide approved in America
Shandong Yantai controlled fall webworm successfully
Biomaterials China News, with 12 to 14 topics in one issue, published by CCM on 8 th every
month, will bring you the latest information on the market dynamics, company dynamics, new
biomaterials products, new biomaterials technology development, new legislations as well as
policies and raw material supply dynamics, which are shaping the significant market
intelligence of the industry.
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