1. 1 Professor K.B. Chan Chairman, Hong Kong Electronic Industries Association November 2007 Green Manufacturing Update on China ROHS & Korea ROHS Regulations

2. 2 World Electronics Industry US$1.5 trillion economy, 6.9% growth (2006) Asia - growth engine (> 50% share incl. Japan) Slower growth in Europe & Americas Source: Reed Research, 10/2006 US$ Billion2003200420052006CAGR Europe2452692752814.6% Americas3123423603806.8% Asia58469476383512.6% Rest of World14.316.21717.87.6% World1,1561,3211,4161,5139.4% Electronics Production

3. 3 Source: Reed Research, 10/2006 China - World Electronics Factory 20% of world output Growth doubles world average Largest markets of handset, DVD, TV Emerging markets: automotive electronics US$ Billion2003200420052006CAGR China16121326030223.2% World1,1561,3211,4161,5139.4% China’s World %14%16.1%18.4%20%-- Electronics Production

4. 4 Top 5 Economies China 10.7% GDP growth in 2006 2007 Q1-Q3: 11.5% growth Foreign Exchange Reserve = US$ 1.4 tril (Sep 07) Source: Gov’t news, Commercial news, IMF Economy 2006 GDP (US$ Trillion) US13.2 Japan4.4 Germany2.9 China2.7 Britain2.4

5. 5 Source: Reed Research Top 7 Asian Electronics Producing Countries

6. 6 California: Recycling (2005) with RoHS (2007) EU: WEEE & RoHS (2005 & 2006) EU: EuP (2007) EU: REACH (2007) China: RoHS (2007) WEEE (under preparation) Japan: Recycling Law (2001) RoHS labeling (2006) RoHS (Pending) Australia, Taiwan, Argentina, Brazil... Korea: RoHS/WEEE (Jan 1, 08)

7. 7 China RoHS “Administration on the Control of Pollution Caused by Electronic Information Products” 《電子信息產品污染控制管理辦法》 : Effective March 1, 2007 Apply to products manufactured in, sold in or imported into China (export products not applied) Same 6 substances as in European RoHS For Details: http://www.mii.gov.cn/art/2005/12/17/art_525_1786.html 

8. 8 Executed by 7 Government Departments Ministry of Information Industry National Development and Reform Commission Ministry of Commerce General Administration of Customs General Administration of Industry and Commerce General Administration of Quality Supervision, Inspection and Quarantine State Environmental Protection Administration

9. 9 Computer Telecommunication Household Electronic Special Electronics Apparatus Radar & Broadcast Electronic Measuring Components and Materials Application Products Product Coverage Following Electronic Information Products (EIP) & their accessories: Over 1,800 items, for details: http://www.mii.gov.cn/art/2006/03/16/art_1221_8441.html

10. 10 Major Requirements 1.Labeling / Marking  Hazardous substances and contents  Environmentally friendly use period*  Packaging materials 2.Restrictions on 6 hazardous substances: Same as European RoHs 1.Compulsory pre-market certification - China Compulsory Certification (CCC) - tested by one of the gov’t-approved Chinese laboratories * Environmentally friendly use period = # of year from manufacturing date in which no hazardous substance is released to the environment

11. 11 Two Phases of Implementation Phase 1: Labeling / Marking for Products Phase 2: Products listed in “Key Product Catalogue” need to comply with requirements:  Hazardous substances limits  Certification (CCC) Chinese Government is drafting the “Key Product Catalogue” (not yet available - expected end 2007 / early 2008)

12. 12 China RoHS Working Group Established in Oct 2004, with 5 sub-working units:  Certification & marking  Maximum concentration limits & testing  Lead-free soldering  Standard system study  Environmentally Friendly Use Period ~120 members, SMT is one of them Consultation and voting rights

13. 13 Consequences of Non Compliance Enforcement by 7 Departments - complicated Penalties and fines More rules No details yet

14. 14 Important Notes Pay attention to China RoHS details & developments (e.g. Key Product Catalogue 重點管 理目錄 ) Consult relevant departments regarding testing & certification Prepare labels, and Chinese translations for documents (substance disclosure table, operating parameters for Environmentally Friendly Use Period)

15. 15 Korea RoHS - titled “Act for Resource Recycling of Electrical and Electronic Equipment and Vehicle” Includes key regulatory actions of the EU directives RoHS, WEEE and ELV Effective January 1, 2008 Regulations in Korea

16. 16 I. Target products & restricted substances: 10 target product items (e.g. TVs, refrigerators) 6 restricted substances (same as EU RoHS) II. Design for recyclability and recycling information: All manufacturers and importers to provide their Electronic and Vehicle Recycle information (product name, year of production, disassembly procedure...) Vehicle's ratio of recyclable contents will be over 85% in 2009, over 95% after 2010 Korean Requirements

17. 17 III. End-of-life recycling system: 4 hazardous substances will be banned in vehicles (same as EU ELV) Korean Requirements

18. 18 RoHSEUChinaJapanKorea Restricted Materials 6 materialsSameSame but info. only Same EffectiveJuly 1, 06Mar 1, 07July 1, 06Jan 1, 08 Scope8 categories (10 for WEEE) Long list (incl. capital equipment) 7 home app. & computer products 10 Target items ExemptionDefinedCatalogNot applicable undecided Marking Req. NoneYes Packaging Materials No impactNon-toxic / recyclable NoneYes Testing/ Certificat- ion No prerequisite China Compulsory Certification No prerequisite Yes

19. 19 A non profit making organization supported by manufacturing and trade associations Alliance formed Dec 2004 Founding Honourary Chairman: Prof. KB Chan Secretariat: Federation of Hong Kong Industries Steering committee – holds regular meeting Government support HK Industry’s Response: Hong Kong Green Manufacturing Alliance (HKGMA)

20. 20 Founding Members 7 Trade Associations related to Electronics, Electrical, Toys and Watches Industries Advisors Hong Kong Productivity Council Hong Kong Trade Development Council 6 universities in Hong Kong Observer Innovation and Technology Commission, HK Government

21. 21 Mission To facilitate the transformation of HK manufacturing industry into “Green” Activities (2005 - Oct 2007) – on RoHs WEEE Raise awareness: seminars, promotions Provide guidelines for compliance: workshops Technology advancement: R&D, database Industry representation: liaise with government Platform for networking: domestic and international  Organized ~40 events > 5,000 participants

22. 22 Activities 2007 onwards Apply same action of promotion & awareness on China RoHs EuP REACH – full funding programs from HK Government Promote Green Q-Mark for FHKI Recognition of enterprise with Green Manufacturing practice

23. 23 World electronics industry is growing at a steady pace, China taking a dominant position China is trying to improve its economic condition, with focuses on R&D, high tech and environment (target industries: e.g. electronics, automotive) Meanwhile, environmental laws around the world are greatly affecting the electronics & other industries (many technical issues still unsolved) Drafting standard industry guidelines for RoHS based on EU laws (agreed in WEF/APEC Seminar - June 2007) is a good start Summary

24. 24 Let’s Join Together for a Better Electronics Industry! Thank You!