Over the past two years, industry insiders can clearly feel how frequently policies have been introduced in the modified plastics sector. From trade-in programs to new-materials planning, the entire strategy points clearly toward lightweighting and green manufacturing.

Intelligent Vehicle Body Welding Lines Driven by Government Policies

Trade-In Programs Have Supported Demand

In January 2025, the large-scale equipment upgrade and consumer goods trade-in policies were implemented, continuously boosting the demand for modified plastics in the automotive and home appliance sectors. By January 2026, the detailed rules for the vehicle trade-in subsidy program had been updated, and in March, the Government Work Report allocated an additional 250 billion yuan in ultra-long-term special government bonds to support trade-in initiatives, ensuring policy continuity.

New Materials Plan Highlights High-Performance Materials

In September 2025, the Ministry of Industry and Information Technology and seven other departments jointly issued a work plan for stabilizing growth in the petrochemical and chemical industry, listing high-end polyolefins, specialty engineering plastics, and high-performance composite materials as key areas for technological breakthroughs. Around the same time, the 15th Five-Year Plan for New Materials Industry Development also places high-performance modified plastics and lightweight composite materials among its top priorities.

The Numbers Speak

According to data from the China Association of Automobile Manufacturers, in 2025, automobile production and sales reached 34.531 million units and 34.40 million units, respectively, up 10.4% and 9.4% year on year. Among them, new energy vehicle sales accounted for 47.9% of total new car sales. The more cars are sold, the more lightweight materials are naturally used.

Green is an unavoidable hurdle

In December 2025, the Action Plan for Promoting the Use of Recycled Materials was released, setting a target of 19.5 million tons of recycled plastic production by 2030. This means that modified-material companies not only need to be able to produce materials, but also to produce materials that are recyclable and traceable. Raising the entry barriers actually presents an opportunity for companies that are committed to R&D.