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Natural rubber, alongside steel, coal, and petroleum, is regarded as one of the world’s four major industrial raw materials and serves as an indispensable strategic resource in sectors such as transportation, healthcare, and national defense. However, China, the world’s largest consumer and importer of natural rubber, recorded imports of 6.492 million tons in 2025, with an external dependence exceeding 80% and a self-sufficiency rate of less than 25%.

Fortunately, the state is deploying a comprehensive package of policies. The State Council has included natural rubber in the central government’s forestry subsidy program, and under the central budget, subsidies for natural rubber production capacity‑building projects can cover up to 80 percent of eligible costs.

I. Strategic Materials in Short Supply: “The Industrial Grain” with Over 80% Foreign Dependence
Natural rubber is classified as a strategic material due to its unique combination of properties—high elasticity, electrical insulation, wear resistance, and plasticity—which render it indispensable in high‑end applications such as aircraft tires, medical devices, and military equipment.
However, reality is harsh: China accounts for 44% of global rubber production, and although its 18 million mu of rubber plantations play a crucial role in ensuring supply security, they fall far short of meeting domestic demand. Even more concerning is that, in recent years, many rubber farmers have abandoned their plantations—ceasing management, tapping, or even switching to other crops—posing a serious risk of shrinking domestic production capacity.

II. Major Policy Announcement: Central Budget Investment Subsidies Can Reach as High as 80%:
As the State Council’s policy of “including natural rubber in central government forestry subsidies” continues to be implemented and refined, support from the central budget for projects aimed at enhancing natural rubber production capacity has reached an unprecedented level—subsidy rates now stand as high as 80 percent.

III. Key Takeaways from the Three Major Directions: Where Should We Allocate Capital?
According to the policy document, central budgetary investment will prioritize support for the following three areas:
(1) Standardized Rubber Plantation Development:
Renovate and replant aging, substandard rubber plantations, giving priority to those over 35 years old that have suffered severe damage from wind, frost, drought, or root diseases. Select high-yielding, high-quality, and multi‑resistant leading varieties. Based on traffic patterns, production logistics, and mechanized operations, construct main access roads, inter‑plot paths, and pedestrian walkways tailored to local conditions. Near natural rubber harvesting areas and in locations with convenient transportation, build maintenance facilities for storing production inputs and tools and providing rest areas for rubber tappers. Upgrade and expand collection stations in proportion to the latex production capacity of their service areas.
(2) Production and processing of specialty adhesives:
Upgrade and renovate the specialty adhesive production line, equipping it with state-of-the-art, environmentally friendly preservation and gelation technologies, as well as automated and intelligent systems for digital formulation and quality inspection and testing. Establish a full‑process traceability management system covering “raw material production—raw material transportation—raw material batches—processing batches—finished‑product batches,” enabling centralized receipt of large‑batch raw materials, continuous processing, and standardized, large‑scale production.
At the symposium, Academician Jian Xigao specifically pointed out that natural rubber exhibits quality fluctuations due to seasonal and regional variations, which severely undermine its market competitiveness. He recommended implementing a tiered management system for natural rubber and establishing a standardized control framework similar to that of synthetic rubber, with grade‑specific standards tailored to different applications. This suggests that the production and processing of specialty rubbers will become the primary battleground in future industry competition.
(3) Building Scientific and Technological Support Capabilities:
Establish a bio-breeding laboratory and an innovation platform for natural rubber, equip them with state-of-the-art instruments and facilities, and enhance research infrastructure. Develop a high‑quality seed and seedling propagation base, complete with dedicated seed‑collection gardens and shoot‑collection nurseries, and upgrade greenhouse and integrated water‑fertilizer irrigation systems. Build and upgrade a pilot facility for the refinement and commercialization of intelligent tapping equipment, promoting the market adoption of electric tapping knives and tapping robots. Renovate and construct a specialized laboratory for analyzing the quality of concentrated latex and evaluating its applications, and establish a high‑performance R&D laboratory for natural rubber test strips, equipped with relevant instrumentation and supporting facilities.
Academician Zhang Liqun has proposed shifting the natural rubber industry from a traditional supplier of industrial raw materials to the forefront of high‑tech component manufacturing. High‑value‑added sectors such as humanoid robots, sporting goods, and aircraft tires are emerging as new markets for natural rubber.

IV. Who Is Eligible to Apply? Be Clear About the Three Key Requirements
Not all projects are eligible for this 80% subsidy; the policy sets clear requirements for applicants:
• Strong planning foundation: Relevant reserve projects have been incorporated into national or local plans, and the project counties have completed comprehensive planning for developing natural rubber production capacity. Key areas of focus include Yunnan, Hainan, Guangdong, and Fujian.
• Preliminary work is in place: The project has obtained all necessary approvals, ensuring its smooth commencement and implementation.
• Secured matching funds: Local government contributions and enterprise‑raised capital are fully in place, ensuring that the project will not be interrupted due to funding issues.