Source: www.chemistry.org
Topic: Chemical Industry
Sort Desciption: The Chemical Industry in China. Overview. The chemical industry is the third largest in China, after textiles and machinery, and ...
Content Inside: Part 3. The Chemical Industry in China Overview The chemical industry is the third largest in China, after textiles and machinery, and accounts for 10 per cent of the country’s GDP, as well as for between 35 and 40 % of the global demand growth for chemicals. China’s chemical industry is the second largest consumer, after the US, of basic chemical products--fully 45 % of the total for Asia. The estimated growth in domestic demand for chemicals in 2004-2005 is now estimated at 7 to 8 %. Output of chemicals increased by 30 % in the first half of 2004 over the same period in 2003, especially in petrochemicals, making it the fastest single sector in manufacturing. However, despite this growth, China has a net chemical deficit with the world market and is heavily dependent on imported materials. This dependency has been affected by price trends in the world market caused by heavy international demand for raw materials, petroleum and other chemical inputs. China joined the World Trade Organization in 2001, which committed it to cutting tariffs on chemicals. In coming years this could expose weaknesses in various parts of the domestic chemical manufacturing center. The chemical industry in China is affected, along with other manufactures, by infrastructure inadequacies and limited energy supplies. There are sporadic and regional coal and electricity shortages as well as transport weaknesses, which have impacted production and the delivery of supplies and product alike. Power cuts have also affected industries, including chemicals, although with less impact to petroleum and petrochemicals than elsewhere. Production of nitrogen fertizers has been particularly hit by power shortages. Nevertheless, growth in chemical output is estimated at 17 to 18 per cent in 2004 and is expected to average more than 11 per cent annually through 2014. The chemical industry in China will therefore continue to be one of the major engines of Chinese economic growth . Leading ...
