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China's tax hikes on plastic bag production is good news for China's blossoming cloth bag industry.China's cabinet, the State Council, said in a notice posted on the central government Web site ( www.gov.cn ) that China uses too many of the bags and fails to dispose of them properly, wasting valuable oil and littering the country. The cabinet also said finance authorities should consider adjusting taxes to discourage the production and sale of plastic bags and encourage the recycling industry.
