Dr. Michele Jermini and Dr. Enrico Polastro11.20.19
China is in the middle of a transformation phase. The country is rapidly transitioning towards a new stage of its development path where quality of life and environmental considerations are increasingly superseding the quest for GDP growth at all costs.
Obviously, this transition is having a major impact on all sectors of the Chinese economy. The chemical industry is no exception. The business model traditionally applied in the country has revolved around low delivered prices leveraging a low cost base—with little regard for elements such as innovation, service or impact on the environment. However, this is more and more being challenged by structural developments, including tighter regulations and a rapid pace of cost inflation. An additional catalyst is represented by the uncertainties created through trade frictions.
This is mirrored in the wave of plant closures affecting mainly small- and medium-sized players—the backbone of the Chinese fine and specialty
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