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Chemical Industry in China

  • June 2016
  • -
  • Aruvian's R'search
  • -
  • 180 pages

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The chemical industry is the third largest in China, after textiles and machinery, and accounts for 10% 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.

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.

Aruvian Research analyzes the Chinese chemical industry in its new report Chemical Industry in China. The report researches the characteristics of the Chinese chemical industry and the segments which, as a whole, make up this dynamic machinery of growth. The massive globalization and consolidation strides taken by the industry as explained in the report with the requirement of heavy capital investment that brings in more competition and the overall focus of the industry to meet the environmental challenge.
A Porter’s Five Forces analysis of the Chinese chemical industry is included in the report.

The report delves deeper into the processes applied in the Chinese chemical industry and their defining global standards thereby ensuring leadership in exports as well as attracting significant FDI in the industry. The industry’s dynamics like competition, infrastructure and the regulatory policies with the reporting requirements deployed on the industry are explained by the report.

The report analyzes the Chinese commodity chemical sector and the Chinese specialty chemicals sector through an industry overview, industry growth by value analysis, industry segmentation and an industry forecast. For both these sectors, we undertake a Porter's Five Forces strategy analysis wherein we look at the bargaining power of buyers and suppliers to the industry, competitive rivalry in the industry, the threat of new entrants to the market and the threat of substitutes to the industry.

A comprehensive section on the effect of the REACH agreement, which came in to effect from June 1, 2007, on the Chinese Chemical Industry, sets Aruvian’s offering apart from other reports on the subject. The report also profiles some of the leading players in the industry who have earned the reputation and pride for the Chinese Chemical Industry globally and have placed China at the top of the pecking order. The players are profiled through a corporate analysis that looks at their businesses in depth, a financial analysis and a SWOT analysis.

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