China is recognized as a big country in chemical industry with a global production ratio of 36%, and most of the production capacity of the chemical industry is in the world's first. But the top 50 of global chemical industry is only Sinopec listed on the list. It inevitably gives people a sense of being big and not strong. Even a view is that the leading enterprises in China will only be able to reach the level of overseas comparable companies in the 50-60 century in the next few years.
But for any industry, most of them are strong foundations, with high yields and high revenues, with high profits and high added value.
However, after 20 years of development, China's chemical industry has accumulated a considerable strength, especially in recent years the technology to enhance the speed, the sub industries have been a world-class production equipment, regardless of size or are advanced in the global forefront, as profits are greatly improved, not to upgrade technology even faster.
At present, China's chemical industry has arrived at the critical point that can compete with Europe and the United States. In the next 10 years, a number of leading enterprises will catch up and surpass overseas chemical giants. China will also rise as a world-class chemical power.
A breakthrough in domestic chemical breakthroughs from MDI
Speaking of technical progress of China's chemical industry, the market reaction is undoubtedly the first Wanhua chemical. Wanhua broke through the blockade of foreign technology, independent research and development MDI (two phenyl methane diisocyanate) production process, to achieve a great breakthrough in the industry.
After 10 years of development, Wanhua MDI production capacity has reached 1 million 800 thousand tons, ranking first in the world, the cost and process capability in the highest level in the world.
And also through the Wanhua production PO (propylene oxide), TDI (toluene diisocyanate), improve the whole industry chain, the integration of all kinds of materials become the supplier of polyether.
In addition to the expansion of the upstream raw materials, we continue to develop more sophisticated fine chemical products downstream of the MDI, which is to say that the company is becoming a leading MDI enterprise in the world. In fact, Wanhua success is just a microcosm of China's chemical industry overall upgrade, there are a lot of sub industry breakthrough.

Merger and acquisition to help the industry to take off
In fact, China's chemical industry is not weak. Even in many subdivision areas, it has been at the leading level in the world. Why is it hard to find the figure of China's chemical industry in the top 50 global chemical industry?
The main reason is that China's chemical industry is too scattered, high quality enterprises often only in a single area of development, not developed a large number of enterprises through mergers and acquisitions, business areas across multiple chemical sub sectors, the nature of income and profit scale are far larger than China's enterprises.
Therefore, the essence of chemical enterprises in our country is not big but not strong, but not strong, single champion, champion too little.
But from the overseas experience of the developed countries, the cyclical industry late in the development of the industry concentration tends to promote quickly, and the source of industry mergers and acquisitions in China is still less part of the state-owned enterprises even if the competitiveness is not strong, it is also difficult to bankruptcy in the soft budget constraint, private enterprises in the backward production capacity due to local environmental and the tax supervision and has the advantages of low cost, also not easy to exit.
In recent years, the pace of overseas acquisition of enterprises in China has also been accelerated. Such as Chinese chemical group in recent years overseas mergers and acquisitions is also generous frequent, the first is the acquisition of the global giant Andy and veteran methionine tire companies in Europe, then global mergers and acquisitions Pirelli pesticide seventh enterprise ADAMA, again this year to spend 44 billion euros holding the Syngenta, not only to fill the short board in our country of genetically modified seeds, but also in the world's largest agricultural enterprises.
In the future, as more and more enterprises are stepping towards globalization, the going out and technology import will also help our chemical enterprises get a new round of rapid development.

The core advantage of China's chemical industry
The development in the past 30 years of China's chemical industry, starting from the initial urea, methanol, chlor alkali, soda ash, tire, gradually expanded to three ene three benzene, MDI, acrylic, silicone etc. in engineering plastics, chemicals, and recently began to extend to the more high-end electronic chemicals, fine chemicals and new energy, new material direction, manufacturing capacity is more and more complex, the value chain is rising.
We can say a breakthrough technical barriers to each sub industry, will absorb the knowledge, replication technology in a very short time, and innovation, and ultimately by virtue of market size and cost advantages to achieve the world's first, and then on this basis, continue to conquer the next sub industry, the whole industry chain to promote the situation is very alarming.
In the chemical industry, China's industrial chain has been matched perfectly, and achieved the full coverage from the lowest urea, methanol to the most high-end new energy and new materials. The advantage is not only in the developing countries, but also in the developed countries.
This not only provides cheap and sufficient raw material guarantee for the downstream, but also provides a huge market demand for the upstream. In the future, we will also use the opportunity of American ethane export to build a large number of new ethylene cracking production capacity to further realize ethylene self supply.
In addition, the new big oil refinery will be used to solve the import problem of PX, which has plagued our country for many years, and the last few short boards in the upper reaches of China will be basically filled.
Future prospects of China's chemical industry
There are many basic commodities in our country, and the direction of the future upstream development is undoubtedly to find opportunities in a large number of imported products.
From overseas comparable experience, except for DuPont and so on, most of the top 50 global chemical enterprises have considerable volume of refining and chemical production capacity, such as Dow Chemical is relying on upstream refining and chemical industry to become a chemical giant in the middle reaches, so the industry can generate many large market value enterprises.
Besides the upstream refinery, the future development direction is undoubtedly the short board and new energy and new materials that have not yet been conquered by China, which will bring a new development opportunity to the chemical industry in the upstream industry chain.
In the future, as China vigorously promotes the localization of chips, the industry of photoresist, electronic special gases, packaging materials, high purity reagents and other industries will undoubtedly usher in great development. As well as the development of China's automobile lightweight and large aircraft, it also provides a huge market space for high end engineering plastics such as carbon fiber and polycarbonate.
Polyphenylene in the field of new materialsSulfide and polyimide need to be breakthroughs in China. There are also opportunities for explosive growth of various lithium batteries and fuel cell materials in the new energy field.

Looking forward to the future, China's enterprises will enter the developed countries in a comprehensive comparison of quality, the phase of research and development. Accordingly, new requirements for enterprise capabilities are put forward. Enterprises that are long enough for cost control and capacity expansion are hard to adapt to the future development. The core competitiveness of enterprises must turn to technological innovation and product innovation, which is the most important stock selection logic in the future.
And with periodic reversal of the recent years, many chemical enterprises profit has reached billions of scale, the future if we can find a good industry direction, have R & D capacity big, actively promote the integration of upstream and downstream, and eventually become a platform for enterprises, and the impact of chemical industry in the world top 50.
summary
With the improvement of technological progress and refinement in the future, most of the domestic chemical industry is expected to achieve global scale and efficiency in the most products. China will also rise as a world-class chemical power.
In the longer term, China will expand the new frontier of human productivity by leading the largest innovative talents gathering in history, leading the new round of industrial revolution and pushing the world into the next wave of prosperity.
China's chemical industry will also undertake technological innovation stagnant for many years in developed countries, and develop new subversive products instead of existing mature products. Chemical leaders will also reproduce growth from 0 to 1. 30 years later, we will eventually realize the &ldquo, the two hundred year &rdquo, the goal of the struggle and the great rejuvenation of the Chinese nation!