With an average GDP of 10.88, China is an economic juggernaut no matter how you slice it. With this much economic power, it’s no wonder the chemical industry has taken a liking to China as a potential market for exponential growth, both for chemical corporations and the industry itself.
Despite its position as a global power, China is indeed a young economy industrially speaking, with most of the country’s industries less than 50 years old compared to the West and neighboring Japan, with some having operated for over a century, so it’s no surprise that the industry in China needs to overcome a huge. However, the research chemicals for sale in China is a burgeoning one. Taking the global market by storm, China is now the world’s largest consumer of chemicals, particularly polymers. China’s chemical sector is primarily dominated by petrochemicals in the home scene, with industry giants Sinopec and PetroChina accounting for most of the market. Although even with these vast strides in the global scene and the doubling of China’s chemical sector since 2000, the industry is underperforming due to its fragmented nature and the most significant players, all state-owned, mainly focusing on commodities, not innovative products. China is also a net importer due to the lack of natural resources to support a booming chemical industry, particularly oil.
Despite these shortcomings of being a young economy, the Chinese market is still one with great potential. Sinopec, as mentioned earlier, and PetroChina are big global players in their own right, with small and medium corporations rising as well. It goes hand in hand with China’s enormous manufacturing sector, which provides a ready market for their product at home. China’s ongoing infrastructure constructions also provide an excellent climate for chemical companies, both local and foreign. China’s population is also a factor for the growth of china’s chemical industries opening markets for agricultural chemicals and consumer products.
Although as with any rising industries, the chemical sector in China has suffered setbacks with recent factory disasters plaguing the country. Also, China’s position as the world’s largest chemical consumer is troubling to other global players as it hinders their access to both components and raw materials. The lack of necessary resources is also taking a toll on the growth of China’s commodity-focused chemical sector. China will have to address these hurdles if it wishes to be a top global player in the chemical industry, which is currently dominated by countries with enormous natural resources.
The Chinese economy is approaching maturity; its legendary growth has been attributed by many to its large population, which provided a cheap, almost limitless source of labor. But with the Chinese population aging, the old industries that relied mainly on human resources rather than innovation will dwindle insignificance. If China wishes to continue its explosive growth, it must embrace and invest in industries that drive innovations. The research chemicals for sale is one of them, an industry that has been the symbol of the modern age.