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China Not Without Kinks But Still Lures
September 17, 2010 | By PECK HWEE SIM
Those doing business in China already know this: there are risks in doing business in a market that is not always freely accessible, and there are risks in staying away from this market with a seemingly insatiable appetite for chemicals. Multinationals that took the floor on the second and final day of the China Petroleum and Chemical International Conference (CPCIC) are in agreement that investment by multinational companies has room to grow in view of the size of the market. They say that although the investment climate has not worsened, it is changing and can be improved.
Chinese officials at the event outlined steps that the central government is taking in its next five-year plan, which included restructuring production facilities, closing highly polluting facilities, improving logistics and infrastructure, introducing clean technologies and promoting more specialized products and technological innovation, an area where cooperation with MNCs is a key area of focus. With the ambitious targets for industry restructuring set forth, balancing execution by the central and local balance will be important in ensuring proper implementation. There is no one-size fit all solution but dialogue between MNCs and local companies and officials were active on day two of the conference.
Energy conservation, emission reduction, REACH, and a need for globally harmonized chemical management system also came into focus at the event.
Despite the kinks, there is without doubt China is on the verge of becoming a key part of the global petroleum and chemical economy as Chinese companies look beyond the border. In the coming decade, the development of Chinese companies will be people-driven and based on a scientific approach, using technology as far as possible to gain advantage, Chemical Week group vice president Lyn Tattum says in her opening remarks on day two.
CPCIC is co-organized by Chemical Week and China Petroleum and Chemical Industry Federation.