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In 2013, the global trade landscape for China's chemical industry was facing significant challenges. A decline in external demand combined with increasingly restrictive policies from key trading partners created a difficult environment for import and export activities. The overall situation remained uncertain, with growing concerns about how these factors would impact the sector in the coming year.
By 2011, emerging markets had become a major part of China’s trade, contributing more than half of the total trade volume of $3.64 trillion. However, starting in the second half of 2012, many emerging economies experienced economic instability, slow growth, and large outflows of capital. According to Mei Xinyu, a researcher at the Ministry of Commerce's International Trade and Economic Cooperation Research Institute, this trend posed a serious threat to China's chemical exports and imports in 2013.
Li, deputy director of the China National Chemical Information Center, highlighted structural issues within China's chemical trade. He noted that there were significant imbalances in the distribution of chemical products between major importers and exporters, indicating that China's export strategy needed improvement. Additionally, most of China's chemical exports were resource- and labor-intensive, while imports focused on high-end chemicals. This structure made the industry vulnerable to international trade restrictions, such as carbon taxes.
Mei also pointed out that trade policies from China's partners were becoming tighter. According to data from the Global Trade Early Warning Organization, between 2008 and June 2012, over 2,430 trade protection measures were implemented globally, with nearly half (47.1%) related to trade barriers. From 1979 to June 2012, 1,530 trade remedy investigations were launched against China, and 371 of those involved the chemical industry. "China is the biggest victim of global trade protectionism, and the chemical industry has suffered the most," Mei concluded.
Internally, the chemical industry faced its own set of challenges. Unreasonable public perceptions and environmental protests have further strained the sector. Mei emphasized that these irrational forms of rights protection have caused significant harm, with public distrust of the chemical industry leading to a shrinking development space. Such negative attitudes could become a fundamental obstacle to future trade growth.
So, what is the way forward? Li Zhong believes that transformation and upgrading are essential for the chemical industry. He suggested shifting from short-term, low-value products to long-tail, high-end specialty chemicals. By improving product structure and focusing on innovation, the industry can better adapt to changing market conditions.
In response to public misconceptions, Mei Xinyu stressed that environmental protection is important but should be based on scientific understanding rather than fear or misinformation. Li Zhong added that the contributions of the chemical industry to society must be recognized, and efforts should be made to address the challenges it faces in order to ensure sustainable development.
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