Factors that hamper development of Petrochemical industry in China

05-Aug-16

China''s petrochemical industrial development is hampered due to overcapacity and environmental or safety restrictions, according to the cabinet of China, as reported by Prensa Latina. According to a directive issued by the country's leadership, China must shut down obsolete facilities, strengthen production and reduce pollution in search of greater competitiveness in the petrochemical industry. The Act establishes that foreign companies will be allowed to participate in mergers and acquisitions.
In addition, the Chinese cabinet announced a plan to build seven coastal petrochemical production bases. The current administration aims to reduce energy consumption by eight 8% by 2020 and lower CO2 emissions and water consumption by 10 and 14%, respectively.