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Four Factors Restricting the Development of China's Natural Rubber Industry
China's natural rubber industry faces four major challenges that hinder its rapid growth and development. These issues not only limit productivity but also affect the competitiveness of the sector in both domestic and international markets.
First, a significant portion of existing rubber plantations has low yields. Many of these older farms produce less than 50 kilograms of latex per mu, with over 1.95 million mu of land affected. Additionally, nearly 3 million mu of new plantations have yet to be tapped. Private rubber farms often lack modern technology, suffer from outdated varieties, and use inefficient tapping methods, which prevent them from reaching their full production potential.
Second, the layout of rubber planting areas is not optimal, and many varieties are aging. Although Brazil rubber trees were introduced as early as 1904, large-scale cultivation began after the founding of the People’s Republic of China. Due to an initial lack of understanding of ideal growing conditions, rubber trees were often planted in typhoon-prone areas like eastern Hainan, leading to poor site selection. This has resulted in an aging rubber base, slow adoption of high-quality new varieties, and a long-term reliance on imported high-grade rubber, creating a mismatch between domestic supply and market demand.
Third, the overall efficiency of the natural rubber industry remains low. The primary products are rubber and wood, while seed oil is a minor by-product. However, there is insufficient focus on the growth and value accumulation of rubber trees. In contrast, Malaysia uses 70%-80% of its rubber wood in furniture production, exporting around $2 billion worth of rubber wood furniture annually. This highlights a gap in how China utilizes its resources.
Fourth, rubber processing plants are small in scale and lack strong product development capabilities. Despite having a total annual dry rubber output of over 500,000 tons, China has only 324 processing plants, with an average capacity of just 1,600 tons per year. In comparison, processing plants in major Southeast Asian rubber-producing countries typically handle over 10,000 tons annually. This small scale leads to higher processing costs, lower product quality, and difficulty in adopting new technologies, further limiting the industry's growth potential.