China’s Two Sessions for the year of 2020 (the 3rd Session of the 13th National People’s
Congress (NPC) and the 3rd Session of the 13th National Committee of the
Chinese People's Political Consultative Conference (CPPCC)) were held on 21–28
May. During the two sessions, Jinren Luo, Deputy of the National People’s
Congress (NPC), held the opinion that the Chinese central government should
enhance the overall planning and layout of its domestic pesticide industry and stabilise
the industrial chain in the aspects of R&D, production, application, and
promotion.
In addition, he also
proposed that the government should establish several pesticide specialised
industrial parks in suitable sites across the country in order to protect the
development of the pesticide sector to a certain extent. In the meanwhile,
related industrial policies should be formulated as soon as possible and the
production distribution should also be optimised so that the industry can be
guided to a healthy path of development.
The pesticide industry
in China has made great progress since China’s reform and opening-up
Nowadays, a lot of Chinese pesticide enterprises and
pesticide intermediate enterprises have a problem with their location because
most of them are misunderstood and defined as pollution. In particular, under the great pressure of China’s
strict policy concerning the protection of environment, it is even harder for
those pesticide enterprises to find a right spot. What’s worse, a couple of
accidents in the related industry appeared from time to time in the recent
years, for example, the explosion of Xiangshui Industrial Park, which does
exert some negative impact on the pesticide enterprises and pesticide
intermediate enterprises in China.
However, Jinren Luo insisted that despite the negative
news, the contribution made by those enterprises should also be seen. For
instance, the pesticide enterprises in China have increased more and more
investment in environmental protection by giving priority to environmentally
friendly production and reaching the standard of the discharge of three waste (waste
water, waste gas, and waste residue).
The pesticide industry in China has made great
progress since China’s reform and opening-up: China has become the biggest producer
and exporter of pesticides in the world. However, some potential pesticide
enterprises may be impeded during their reconstruction and relocation because
of prejudice. Jinren Luo thinks that without a related policy support, it would
be difficult for China’s pesticide industry to improve its competitiveness in
the global market.
Asian countries such as
India and Vietnam accelerate their production of pesticides
As for the reasons why pesticide specialised parks
should be established, Jinren Luo explained in the following two aspects.
First of all, under the strict policy regarding China’s
industries and the restriction in some areas, most of the Chinese pesticide
enterprises tend to move to the north and the west of China. As a branch of fine
chemical industry, Chinese pesticide industry usually lies in Jiangsu, Shandong
and Zhejiang. But because the accidents involving some pharmaceutical
enterprises happened recently in China, several chemical parks located along
the coast have been shut down for an inspection. Consequently, pesticide supply
was badly hit. Plus the increasingly high cost of labour force, production and
operation in Southeast Coastal Zone, the pesticide enterprises had to move to
the northwest, where the economic development relatively falls behind. The
northwest in China has disadvantages in water shortage, less chemical raw
materials and higher cost of logistics, which is very bad for the development
of fine chemical industry.
Furthermore, while China’s pesticide industry gets
restricted in its development, other Asian countries such as India and Vietnam
accelerate their production of pesticides. Additionally, have advantages in
better production costs and labour costs, which would be a challenge for
China’s competitiveness in the global market.
For more information on China’s pesticides market,
please check our pesticides
resources or email emarket1@cnchemicals.com.