China chemicals sector

The Chinese chemical market is attracting huge foreign direct investments. Between 1993 and 2003, investment projects amounted to around EUR 20 billion of contractual FDI, with Bayer, BASF, Shell, and BP the four biggest investors. Over the last ten years, five percent of foreign direct investment was into the chemicals sector. Multinational corporations (MNCs) tend to enter via joint ventures partially driven by the need for feedstock access, but wholly foreign-owned enterprises will become more common following China s membership of the WTO. 

China (1986) Preliminary cost of corrosion was conducted in 1980 although no nationwide corrosion losses have been reported (13). A total of 148 enterprises in the chemical sector were surveyed. The comprehensive results of 10 enterprises showed an average corrosion of 4% of the annual income. The results of another survey of an iron and steel complex indicated corrosion costs of 1.6% of their annual income. 

Only about 360,000 tonnes of mineral filler of any sort are used in polyolefins. Most of it is either calcium carbonate or talc. Globally, talc has 7% of the fillers-for-plastics market, and China is the world s largest producer. Consumption of talc in plastics is mainly in PP, but there is also considerable demand from the coatings, paper, pharmaceuticals, agricidtmal and water treatment chemicals sectors, as well as for ceramics and refractories. Estimates of consumption depend considerably on which minerals are counted some estimates have put global production at 2.4 M toimes in 2002, for all purposes. 

Competition in Commodity Chemicals Sector. Domestic players in the Commodity Chemicals sector are not as competitive as North American or European players, particularly in the more complex downstream intermediates. The biggest players in the commodity chemicals market in Chitra are the three main oil and gas companies, China Natiotral Petroleum Corporation (CNPC), China Natiorral Petrochemical Corporation (Sinopec) and China National Offshore Oil Corporation (CNOOC), all of which are still prinrarily owned by the Chinese government. 

In the fine chemicals and pharmaceutical sectors lower labour rates, increased local demand and acceptance of international standards in quality management are also taking manufacturing away from Europe and the US. India has become the no.l manufacturer of the APIs for generic drugs 70% of all such APIs used in Europe are now manufactured in India and China. 

China [26-30]. In recent years, China has seen its role on the world stage change dramatically from a rising star to an experienced performer. It has a massive trade surplus, but chemicals is one sector in which China runs a... 

However, China lacks the capabihty to produce certain fine chemicals that are required only in small amounts but are nonetheless vital to the national economy. Examples are methionine, lysine, pantothenic acid, calcium, vitamins E, A and D, L-lactic acid, behenic acid, nucleic acid, artificial sweeteners, new types of enzyme, biodegradable polymers, long-chain fatty acids and new biotech-based pesticides. Most of China s fine chemicals are currently produced in small qnantities, and in relative technical and geographical isolation. This sector can only be developed if China s scientific and technological base is upgraded, especially in chemical engineering. 

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