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What policy support needs to be considered for the construction of a new chemical project?

煤制天然气

Chemical industry has diverse attributes, different production methods, for the same product policy requirements exist a world of difference. Therefore, the policy constraint for new projects is the policy threshold for their project investment, and the direction of choice for new projects is not only the existence of policy requirements, but also the need to meet the development needs of the market. In accordance with industry experience, assessed the current in the new chemical project declaration, the need to focus on the consideration and study of several directions, which are different from the policy constraints, but the policy for its project to encourage and support. Translated with www.DeepL.com/Translator (free version)

First, the need to respond to the market development trend needs, respond to the market development needs, is currently one of the main considerations for Chinese chemical companies to choose new projects. The chemical industry structure keeps changing and the market development trend keeps adjusting. To meet the market development needs is to reflect the accurate prediction of enterprises for the future development of the chemical market. At this stage, the Chinese chemical industry still has many development bottlenecks:

  1. Uneven development of the petrochemical industry chain, a new round of petrochemical project capacity release in the next three years, homogeneous competition intensified.
  2. A new round of consolidation will occur around 2025, with a large number of chemical companies, low concentration, few leading companies, low efficiency in resource allocation, etc.
  3. The technological innovation system is not perfect, the process of industrialization of basic research is slow, and there is a shortage of independent core technologies.
  4. The level of product application research is low, most enterprises focus on production, light on R&D and application, and few customized applications. And for the future development trend and opportunities of China’s chemical industry, the main focus is on the following points:
  5. Terminal industry development, continuous investment in science and technology R&D and green development will drive China’s chemical industry to shape a new global competitiveness in the next 10 years.
  6. The market will still drive the development of the industry, and new materials and other high-end materials industries will gradually move from Japan, South Korea, Taiwan and other places to mainland China.
  7. The chemical industry will enter a short boom cycle 1-3 years after the epidemic, and the cycle sustainability will depend on the implementation of relevant policies in China and the US.
  8. There will be a round of chemical industry de-capacity happening in the future, especially for bulk chemicals.
  9. The leading Chinese chemical companies have already emerged in the niche market segment. In the next three years, more R&D-driven companies will emerge in China. In the next three to five years, the globalization layout and domestic substitution will further intensify, while more foreign companies will land in China in the future.

During the 14th Five-Year Plan period of China’s chemical industry, China will focus on supporting the development of new energy vehicles, digital new infrastructure, high-performance semiconductors, new energy and other fields, and will also work to strengthen the domestic advanced chemical materials supporting the construction of supply capacity.

First, the development theme of the chemical industry during the 14th Five-Year Plan is to promote high-quality development, focusing on green, low-carbon and digital transformation. In order to follow the development trend of the chemical market, it is recommended to pay more attention to the industries encouraged by the industry, among which the advanced chemical materials encouraged to develop mainly include: high-end polyolefin, special engineering plastics, biodegradable materials, water-based and special polyurethane, special synthetic rubber, high-performance fibers, functional membrane materials, electronic chemicals, etc. Second, the need to draw on the 2019 edition of the “Industrial Structure Adjustment Guidance Catalogue” to encourage chemical projects in the “Industrial Structure Guidance Catalogue” is an important directional guidance in the declaration of chemical projects in China, but also in the basic premise of the declaration of chemical projects. The directory is divided into “encouraged” projects and “eliminated” projects, and the types of projects, production processes and production scale are clearly defined, which has obvious significance for the declaration of new projects. In the above article has introduced the “restricted” projects, and if you choose to encourage the class of projects, will be supported by the policy. These projects are in the way of production process and technology upgrade, as well as the scale of investment and construction encouragement. In addition, chemicals with high technical barriers and green attributes are also included in the scope of encouraged projects. If you choose to encourage the development and declaration of such projects, you will get special treatment of “green light” all the way, so we suggest you to focus on the scope of encouraging projects.

Third, the scope in the “Green Industry Guidance Catalogue (2023 Edition)” needs to be studied Just recently, the country released the “Green Industry Guidance Catalogue” 2023 Edition, in which relevant energy and material support required by the country in the future direction of green development is released, which is of great importance to promote the development of green industries and enhance environmental protection requirements. In this policy, several industries such as energy saving and carbon reduction, resource recycling, clean energy, ecological protection and restoration, infrastructure upgrading, and green services are released, and the relevant industries in several industries are subdivided to list specific green requirements and indicators. Although the specific content is not clearly written, the direction points to the need and efforts of China’s future “green” development path. As a new chemical project, if it meets one of the policy, such as belonging to the energy-saving and carbon-reducing transformation, or environmental protection, etc., it will be supported by the policy.

Fourth, in line with the “Catalogue of Industries Encouraging Foreign Investment”, “Guidance Catalogue for the First Batch of Application Demonstration of Key New Materials”, “Comprehensive List of Environmental Protection”, “Made in China 2025”, etc., will be supported by the policy Pingtou believes that the scope of policy support related to chemical industry involves several policy requirements, which are roughly divided into environmental attribute policy and industrial structure attribute policy. The representative policies are “Catalogue of Industries Encouraging Foreign Investment”, “Guidance Catalogue for the First Batch of Key New Materials Application Demonstration”, “Comprehensive List of Environmental Protection”, “Made in China 2025”, etc. The Catalogue of Industries to Encourage Foreign Investment clearly mentions the range of products for foreign investment and construction in China. Most of this products are products with high import dependency and limited technological development in China, which will be supported by policies if foreign investors choose to invest in China or build factories in joint ventures with Chinese enterprises. The “Key New Materials First Application Demonstration Guidance Catalogue” lists numerous high-end new materials needed in the field, which are all new material types necessary for China’s industrial development, and are also products with high import dependency in China. If a chemical company starts a new project that belongs to one of the new materials in this policy, it will be supported by the policy. Although the “Comprehensive Environmental Protection List” lists products with “high pollution and high environmental risk”, it also provides “exclusions” for some production processes, where “exclusions The “excluded” part is the advanced production process, which is not explicitly prohibited by the state. If you choose a new project belongs to one of the “except” content, need further explanation and examples, for the project declaration may increase a certain obstacle.

Finally, the declaration of new chemical projects will continue to increase in the future, on the one hand, the development of the chemical industry is still an important direction related to national security and livelihood, and on the other hand, the chemical market will be an important and profitable industry in the future, which will also attract more investment to enter, thus further accelerating industrial development. In such a premise, the policy approval in the process of investment and construction of new chemical projects becomes the biggest support or obstacle. Therefore, it is recommended that chemical companies declaring new projects need to make a full certification statement on the market and policies in order to improve the efficiency of the project declaration process and thus hopefully take the new project qualification smoothly.

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