
In 2013, a key seminar on the future of China's chemical industry was held in Beijing by the China Petrochemical Federation. The event focused on addressing the long-standing issue of overcapacity that has plagued the sector for years. Li Yongwu, president of the China Petrochemical Association, emphasized that resolving this overcapacity challenge is not only a priority for the current year’s industrial restructuring but also a long-term goal for the entire industry.
He called for strict adherence to central government policies and urged the implementation of comprehensive measures across various sectors. To tackle the problem effectively, three main strategies were highlighted. First, actively managing and reducing overcapacity by limiting new construction projects, eliminating outdated facilities, optimizing existing ones, and transferring surplus production capacity. This would be supported by economic tools such as differentiated water and electricity pricing, which would increase costs for inefficient operations and help curb uncontrolled expansion.
Second, fostering innovation-driven growth by investing in advanced technologies for processing low-grade raw materials and heavy oil. The focus would be on developing cost-effective and high-performance manufacturing methods for bulk synthetic materials and critical chemical components. Additionally, breakthroughs in special engineering plastics, membrane materials, carbon fiber, aramid fibers, and fluorosilicone materials were encouraged to elevate the industry’s position in the global value chain and enhance its competitive edge.
Third, promoting sustainable development through green practices, recycling, and low-carbon initiatives. Research into major environmental challenges—such as mercury pollution, phosphogypsum, chromium slag, PM2.5, and volatile organic compounds—was urged. The development of eco-friendly chemical parks was also emphasized to ensure safer and more standardized industrial operations.
Li Yongwu further recommended that industries with significant overcapacity and outdated production units should be included in national plans to phase out obsolete facilities annually. This would help accelerate the transition toward a more efficient and environmentally responsible chemical sector.
The conference brought together nearly 100 representatives from leading enterprises, research institutions, professional associations, local groups, and industry experts. Discussions centered on pressing issues facing China’s chemical industry, including the status and trends of coal-based chemical development and the nitrogen fertilizer sector. It served as a vital platform for exchanging ideas and shaping the future direction of the industry.
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