New prospects for China’s petrochemical industry following 20th Party Congress
China aims to shift its economy from “high-speed” growth” towards “high quality” growth, president Xi Jinping said in a report at the opening session of the 20th National Congress of the Communist Party of China on 16 October. The report lays out the country’s development objectives for 2035, with the goal of “significantly increasing economic strength, scientific and technological capabilities, and composite national strength”.To get more news about china 20th party congress, you can visit shine news official website.
Strategies that will attract the attention of chemical industry players include the upgrading of China’s petrochemical industry with investments that focus on bringing cost savings and stronger profits, as well an increased move towards green developments through eco-innovation, say ICIS analysts.
In the Congress, long-term themes highlighted in the 14th Five-Year Plan were reiterated, including the topics of technology and innovation, as well as rural vitalisation and urban development.
“China sets the target to substantially grow per capita GDP to be on par with that of a mid-level developed nation”, Xi said. He emphasized that “high-quality development is the top priority for the construction of a modern socialist country”.
Some indicators were also reiterated, with the report stating: “China is to reach the level of a moderately developed country by 2035, in per capita GDP.”
The targeting of “high quality” over “high speed” economic growth will involve integrating China’s strategy to expand domestic demand with efforts to deepen supply-side structural reform, the Congress report said.
Such development expectations will help boost chemical industry development in the longer term, driving demand from industries including polyolefins and polyesters.
The polyolefins market, which is connected to various end-use sectors such as construction, packaging, automotive and household appliances, could reflect the impacts of China economic development.
According to the ICIS supply and demand database, China’s polyolefins demand will see a CAGR (compound annual growth rate) of 3.6% between 2020 and 2030 and 1.4% in 2030-2050.
As the largest downstream application for polyvinyl chloride (PVC), the construction industry will drive demand for pipes and profiles with the policy of modernisation and rural revitalisation.