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Chemical industry

Updated: 2018-06-29

China is recognized as a major chemical country. Its output accounted for 36 percent of global production in 2015. The majority of China's chemical production capacity has ranked No 1 in the world. After more than 20 years of development, China has accumulated considerable strength. In recent years, the speed of technological upgrading has been extremely fast, and world-class devices have been continuously put into operation in various sub-industries. China is in the world’s leading position in terms of scale of advancement. With substantial improvement of the profit level, technology upgrades will become faster in the future.

Potential

China has obvious advantages throughout its entire industrial chain, which is exceptionally well-equipped, with full coverage from the lowest-end urea and methanol to the highest-end new energy resources and new materials, which provides cheap and adequate raw material for the downstream, as well as massive market demand for the upstream.

The terminal market has obvious advantages in capacity. China has a population of 1.4 billion. Its annual per capita GDP exceeds $ 8,000 and is still growing at a rate of 10 percent per year. The annual income of 300 to 400 million people in coastal provinces has reached the level of moderately developed countries, and their spending power is not inferior to that of Europe and the US.

China also has obvious advantages in infrastructure facilities. China leads in not only transportation infrastructure, but also the supply of electricity and water, political stability, and social security. The integration of the logistics network, energy network and information network are jointly weaving a highly efficient and convenient infrastructure system in China.

China has obvious advantages in dividends of population base and engineers. The size of the industrial population directly determines the country’s development potential, speed, and industrial upgrading speed. The output of science and technology depends essentially on talents and funding. China’s talent reserve already tops the world and the input will reach the top in the world within the next few years. China’s R&D investment exceeded 1.4 trillion in 2015, accounting for 20 percent of the global total. The R&D investment of the US, EU and Japan accounted for 28 percent, 19 percent and 10 percent of the global total respectively.