Chinese chemical export sees another round of development and overseas purchasers are looking for more suitable Chinese suppliers
China has entered the WTO for seven years, indicating the end of "interim of entering WTOĦħ for chemical industry which is an important component of export. In 2007, the Chinese government implements a series of new policies on exporting trade, which will trigger another round of growth in chemical exporting trade.
On July 1 2007, the VAT refund rate on export of over 550 chemical products were cut or canceled. On July 23, 2007, different management policies on processing trade in eastern and western regions were implemented. The above measures aim to change the current situation that Chinese chemical processing and export is in the undeveloped part of the industrial chain.
After development and research in past years, a large-scale chemical production and export, in a certain sense, have been seen in eastern regions of China, which will be definitely affected greatly by above policies. Simple processing industry will see the cost rising by 30%, making reform necessary for them so as to survive the market. Only if companies in eastern regions shift from OEM to OBM and ODM, update technology, build up their own brands, exploit new market and customers, and decrease trade parts
shall they win in the competition.
Implementation of above policies purpose promoting development of intensive industries in western regions of China and improving technology level in processing industry in eastern regions instead of restricting Chinese chemical export. Chemical processing industry in western regions is endowed with special advantages by the government's policy protection. Thus, producers there shall take the opportunity to complete the primitive accumulation from weak to strong.
As everyone knows, China will become one of the major manufacture centers in the world. Along with fast growth of chemical industry in recent years, the country has been an indispensable supplier for international chemical purchasers. In the same way, strong demand from these purchasers is a major driver for development of Chinese chemical export.
According to ICIS, international chemical processing outsourcers and chemical product purchasers pay close attention to Chinese chemical export. After the issuance of above policies, more and more international chemical companies consult ICIS for the latest information regarding Chinese chemical producers and exporters so as to find more cooperation opportunities.
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