2017 In the past year, in line with the strategic plans laid out by the Party Central Committee and the State Council, the petrochemical industry has persisted in deepening supply-side structural reform, vigorously promoted innovation-driven development and industrial transformation and upgrading, and achieved outstanding economic results. In particular, the industry’s economic growth rate was the fastest in nearly six years, marking a new stage of development for the petrochemical industry.

　　I. Overall Operational Status

　　(1) Overall product production remains stable.

　　2017 In the year, the petrochemical industry maintained overall stable production. Ethylene output... 1821.4 Ten thousand tons, growth 2.4% ; Sulfuric acid production 8694.2 Ten thousand tons, growth 1.7% ; Caustic soda production 3365.2 Ten thousand tons, growth 5.4% ; Calcium carbide production 2447.3 Ten thousand tons, reduced 1.7% ; Pure benzene production 833.5 Ten thousand tons, growth 3.7% Methanol production 4528.8 Ten thousand tons, growth 7.1% ; Synthetic material production 1.5 Hundred million tons, growth 6.6% ; Tire production 9.26 Hundreds of millions, growth 5.4% ; Total output of chemical fertilizers 6065.2 Ten thousand tons, down 2.6% 。

　　(2) The pace of economic benefit growth is accelerating.

　　2017 Year, large-scale enterprises in the petrochemical and chemical industry 28005 Household, industrial value-added grew year-on-year. 3.7% Cumulative realized revenue from principal operations 13.45 Trillion yuan, growth 15.8% , for 6 The fastest growth rate in years; among them, the main business revenue of the chemical industry 9.10 Trillion yuan, growth 13.8% Annual profit achieved 8313.6 100 million yuan, growth 52.1% , for 7 The fastest growth rate in years; among them, the chemical industry achieved profits. 6072.4 100 million yuan, growth 39.7% 。

　　(3) Foreign trade continues to expand.

　　2017 Year, total import and export trade volume of the petrochemical industry 5833.7 hundreds of millions of dollars, growth 22.1% , including exports 1929.8 hundreds of millions of dollars, growth 12.9% ; Trade deficit 1974.2 hundreds of millions of dollars, growth 45.1% 。

　　(4) Structural adjustments continue to be optimized.

　　The development of high-end and specialized chemical products—such as synthetic resins, synthetic fibers, and electronic chemicals—is accelerating. Revenue and profit growth in synthetic materials, basic chemicals, and specialty chemicals are leading the way, and their combined contribution to the overall growth in chemical industry revenue and profits exceeds 80%. New progress has been made in capacity reduction efforts in industries suffering from overcapacity. 2017 This year, synthetic ammonia production capacity has decreased. 165 Ten thousand tons—urea production capacity reduced. 280 Ten thousand tons—calcium carbide production capacity reduced. 350 Ten thousand tons—PVC production capacity reduced. 28 Ten thousand tons.

　　II. Major Existing Issues

　　2017 In the past year, the petrochemical industry achieved rapid economic growth, with remarkable highlights across the entire sector. However, the industry still faces numerous challenges and constraints, among which the most prominent are:

　　(1) Industry investment remains persistently weak.

　　2017 In the year, the petrochemical industry completed fixed-asset investment. 2.06 Trillion yuan, down 2.8% ; Investment in the chemical industry among them 1.50 Trillion yuan, down 5.2% , expanded compared to the previous year 2.5 Percentage points—the second consecutive year of decline. The main reasons are: First, the transition from old to new growth drivers is slow. Overcapacity persists in bulk commodities such as synthetic ammonia, fertilizers, methanol, chlor-alkali products, calcium carbide, and tires, leading to weak investment demand. Moreover, the innovation capacity for high-end specialty chemical products remains insufficient, their industrialization level is still low, and investment momentum has yet to take hold. Second, the macroeconomic environment has had an impact. In recent years, environmental inspections have become increasingly stringent year by year, and efforts to reduce overcapacity have intensified, significantly affecting investment in the petrochemical and chemical industries.

　　(2) Frequent industry safety accidents

　　Currently, nearly... nationwide. 30 There are tens of thousands of enterprises engaged in the production and operation of hazardous chemicals, among which small-scale chemical enterprises with relatively weak safety assurance capabilities account for a significant proportion. 80% As mentioned above, safety accidents occur from time to time. According to disclosures by the State Administration of Work Safety, 2017 Year, the chemical industry experienced a total of accidents. 218 Start, death 271 People—two of which were major accidents, namely: 6 Moon 5 The Rilinyi Jinyu Petrochemical Explosion Accident, 12 Moon 9 The explosion accident at Lianyungang Juxin Biotechnology Co., Ltd. in China. The industrial layout of the domestic petrochemical industry is not entirely rational. “ Chemical Siege ”、 “ Chengwei Chemical ” The issue is becoming increasingly prominent: some hazardous chemical production enterprises are located near densely populated urban areas, seriously threatening the safety of life and property of nearby residents. It is urgently necessary to carry out relocation and upgrading efforts to eliminate these safety hazards.

　　(3) Increasing import pressure on the petrochemical market

　　2017 In recent years, imports of petrochemical products such as synthetic materials and organic chemical materials have continued to grow, putting significant pressure on the domestic market. According to customs data, 2017 Year, total import volume of synthetic materials 4869.8 Ten thousand tons, growth 8.3% ; Net imports 3880.9 Ten thousand tons, growth 8.2% ; Total imports of organic chemical raw materials 6222.7 Ten thousand tons, growth 6.3% ; Net imports 4783.2 Ten thousand tons, growth 4.8% The main reasons are: First, domestic market demand has grown relatively rapidly, with apparent consumption of synthetic materials and organic chemical raw materials increasing by... 7.0 and 5.5 percentage points; second, due to environmental protection measures, some enterprises have reduced or halted production, leading to slow growth in supply; third, there is still a gap between China’s high-end chemical products and the world’s advanced standards, resulting in relatively weaker competitiveness.

　　Three, 2018 Annual Industry Work Priorities

　　(1) Vigorously promote the relocation and upgrading of hazardous chemical production enterprises.

　　2018 This year, we will earnestly implement the “Guiding Opinions on Promoting the Relocation and Transformation of Hazardous Chemical Production Enterprises in Areas with High Population Density in Urban Areas” (Guobanfa [ 2017 ] 77 No. ), in collaboration with the State Administration of Work Safety, established a special task force for the relocation and upgrading of hazardous chemical production enterprises. The task force will strengthen supervision and inspection, track and analyze progress, and promptly release relevant information on the relocation and upgrading efforts for hazardous chemicals. It will also organize experts to evaluate implementation plans submitted by various provinces (autonomous regions and municipalities), provide guidance and oversight to local authorities as they carry out relocation work, and timely summarize and promote exemplary practices. Those demonstrating solid work and achieving remarkable results will be commended, while those performing poorly or experiencing delays will be promptly urged to make corrections. This ensures that small- and medium-sized enterprises, as well as large enterprises posing significant risks and hidden dangers, will... 2018 All relocation and renovation projects will be fully launched by the end of the year.

　　(2) Accelerate the implementation of measures to address shortcomings in new chemical materials.

　　Focusing on key areas such as automobiles, next-generation information technology, aerospace, rail transit, energy conservation and environmental protection, and greater healthcare, we will formulate and implement the "Implementation Plan for Addressing Weaknesses in New Chemical Materials." We will also provide guidance to industry alliances—including the Carbon Fiber and Composite Materials Industry Alliance and the Electronic Chemical New Materials Industry Alliance—to promote the development and application of carbon fiber, electronic chemicals, and membrane materials in downstream sectors. Furthermore, we will facilitate the establishment of an Industry Alliance for Lightweight Non-metallic Materials for Automobiles, thereby accelerating the adoption of engineering plastics and carbon fiber composites in the automotive industry.

　　(3) Carry out intelligent upgrades of chemical industrial parks.

　　Establish an evaluation index system for chemical industrial parks, conduct a nationwide survey to map out chemical industrial parks, and create chemical industrial parks. “ A picture ” Carry out comprehensive evaluations of chemical industrial parks. Leverage existing funding channels to support chemical industrial parks in undertaking intelligent upgrades, continuously enhancing the infrastructure and public service levels of these parks, and strengthening their capacity to accommodate the relocation of hazardous chemical production enterprises.

　　(4) Promote the deep integration of informatization and industrialization in the chemical industry.

　　Deeply advance pilot demonstrations of intelligent manufacturing and the industrial internet, and accelerate the issuance of relevant standards and specifications. Actively promote the establishment of a shared information platform for the regulation of hazardous chemicals, integrate regulatory information resources from relevant departments, build a large-scale database, and create a comprehensive information platform featuring government-led construction and management, enterprise-based information reporting, collaborative data development and sharing, and departmental division of responsibilities for oversight.

　　(5) Enhance service capabilities and guide the petrochemical industry to expand investment.

　　Strengthen the alignment of fiscal and tax, financial, and trade policies with industrial policies; implement policies for bank-enterprise matching and industry-finance cooperation; and increase financing support for key enterprises and priority projects. Intensify support for areas such as the relocation and upgrading of hazardous chemical production enterprises, technological upgrades and enhancements in the petrochemical industry, pilot programs for intelligent manufacturing, smart chemical parks, development of high-end products, green and safe production, and the construction of public service platforms.

　　(6) Apply force “ The Belt and Road ” , enhance the industry “ Go out. ” Horizontal

　　Actively promote cooperation between key industries such as tires, fertilizers, and chlor-alkali. “ The Belt and Road ” Countries along the route will engage in international capacity cooperation. Based on country-specific proposals, we will compile project lists and organize targeted matchmaking between enterprises and industries in the partner countries. We encourage enterprises to join forces through various collaborative models. “ Go out. ” Improve fiscal and tax support policies, establish a coordination mechanism between petrochemical enterprises and financial and insurance institutions, and address the financing needs of enterprises’ overseas development.