Growth potential of Chinese chemicals market is promising till 2020

China's economy is in transition, although the growth rate has slowed down, and still regarded as one of the most potential market. Executives from Clariant, international specialty chemicals giant, said in Shanghai that the company’s Chinese business will be transferred from the verge to the core. It is predicted that by 2020, China will continue to be the main engine of the chemical market growth, accounting for 60% of the total global growth.

Clariant held the "2016 Sustainable Development Dialogue summit" in Shanghai days before. President of Clariant China and Korea region Yan Kaipeng pointed out that under the the background of "new normal" and "13th Five-Year plan", Clariant can have a brilliant future. According to the third quarter earnings that the company just announced, Asia lead to all other regions, in local currencies, Clariant sales rose by 8%, showing the picking up of Chinese business.

It is predicted that from 2015 to 2020, the compound growth rate of China's chemicals market will reach 5.6%, significantly ahead of other regions of the world by 2.4% and the other regions of the Asia Pacific region by 1.9%.

China's continuous growing chemical market makes chemical giants rush to increase investment. A few days ago, BASF and DuPont have announced to put production in Xinjiang and Shenzhen, global chemicals manufacturing company accelerated to make arrangement in china. Clariant also revealed that the Clariant integrated park in Shanghai is planned to be completed in the first quarter of 2019, the park will include a regional headquarters and a brand new regional R&D center.

The International Chemical Manufacturers Association releasing the "future development of multinational chemical enterprise in China" also shows that transnational chemical giants are still generally optimistic about the Chinese market, and think it essential to them". In the survey of 33 responsible person from multinational chemical companies, more than 60% believe that the Chinese market has become an important support for the Asia Pacific region. And almost all of the respondents said that in the face of Chinese market demand changes, their productions in China are transferred from low cost to high added value products.