Published by Lucía Fernández
Business segments that are closely connected to the chemicals industry range widely, from agriculture, automobile manufacturing, metal processing, and textiles, to power generation. By providing industry with the raw materials needed to produce the products used in various aspects of daily life, the chemicals industry is broadly fundamental to modern society. Globally, the chemical industry generates a total revenue of approximately four trillion U.S. dollars every year. Almost 41 percent of that amount came from China alone as of 2019. Not only does China generate the highest revenue from the chemical industry in the world, but it is also a leader in chemical exports, with an annual export value of over 70 billion U.S. dollars. At the same time, China’s domestic chemical consumption amounted to 1.54 trillion euros (or 1.7 trillion U.S. dollars) as of 2019.
Chinese chemical trade
With over 314 billion U.S. dollars of total revenue and over 710,000 people employed, organic chemical material manufacturing is an important part of China’s chemical industry. Organic chemicals are also China’s largest chemical export category, accounting for over 75 percent of Chinese chemical exports based on value. The top destination for Chinese chemical exports as of 2019 was the United States and India, while other major destinations were predominantly emerging countries. On the other hand, the largest importers of chemicals from China were Japan and South Korea, each importing over 20 billion U.S. dollars’ worth of chemicals in 2019, followed by the United States and Germany. Both chemical exports from China and chemical imports to China had been steadily growing in recent years, however, the value of imports has been slightly higher than the export value, leading to a net import value of around 24 billion U.S. dollars in China as of 2019.
China to lead chemical industry growth post COVID-19
In 2020, the global chemical industry took a major hit as a result of the global COVID-19 pandemic, just like other industries. Due to the change in consumer habits and suspension of supply chains, many global chemical companies have reported a lack of growth or even a two-digit year-on-year sales dip, and Chinese counterparts were no exception. However, as consumption picks up speed along with the recovery from COVID-19 worldwide, China is expected to lead in the growth of the chemical industry, like before as the global manufacturing hub.
Post time: Nov-18-2021
