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In 2013, the Chinese chemical industry faced a challenging trade environment, marked by declining external demand and increasingly restrictive policies from its trading partners. This dual pressure made the outlook for China's chemical imports and exports quite uncertain.
In 2011, emerging markets accounted for over 50% of China’s total trade volume, which reached $3.64 trillion. However, since the second half of 2012, these economies experienced significant economic instability, with growth slowing down and large amounts of capital flowing out. According to Mei Xinyu, a researcher at the Ministry of Commerce’s International Trade and Economic Cooperation Research Institute, this trend was expected to have a major impact on the chemical sector in 2013.
Li, deputy director of the China National Chemical Information Center, pointed out that the structure of China’s chemical exports had several issues. There were significant differences in export distribution compared to major importers globally, indicating that the current export strategy needed improvement. Additionally, most of China’s chemical exports were resource-intensive, energy-consuming, and labor-heavy products, while its imports focused on high-end chemicals. Such a structural imbalance made the industry vulnerable to international trade restrictions, including carbon taxes and other environmental regulations.
Mei Xinyu added that trade policies from China’s partners were becoming stricter, not just due to carbon taxes but also through various other measures. Statistics from the Global Trade Early Warning Organization showed that between 2008 and June 2012, 2,430 trade protection measures were launched worldwide, with 47.1% related to trade barriers. From 1979 to June 2012, 1,530 trade remedy investigations were initiated against China, and 371 of those involved the chemical industry. “China is the biggest victim of global trade protectionism, and the chemical industry is the hardest hit,†Mei concluded.
Internally, the situation wasn’t much better. Unreasonable public perceptions and environmental protests placed additional pressure on the chemical industry. Mei noted that frequent social environmental rights activism had caused serious harm to the sector. Public misconceptions about the industry had led to increased scrutiny and negatively impacted its future development, potentially becoming a major obstacle to trade expansion.
So, what was the way forward? Li Zhong suggested that transformation and upgrading were urgently needed. He emphasized shifting from short-term profit-driven products to long-tail, high-value-added chemicals such as fine and specialty chemicals. This would help diversify the product structure and improve the competitiveness of China’s chemical exports.
In response to public concerns, Mei Xinyu stressed that environmental protection was necessary but should be based on scientific understanding rather than misinformation. Li Zhong added that the chemical industry’s contributions to society should be recognized, and efforts must be made to address the challenges it faces in terms of development space and public perception.