With the ever-increasing trend of economic globalization in the world, joining the WTO is inevitable. After China's accession to the WTO, the fine chemicals industry in China is not only faced with the impact of lower tax rates, but more importantly, product distribution, retail, wholesale markets, and opening up of manufacturing and service sectors will directly affect the production and marketing of fine chemical products. consumption. Due to the weak foundation of China's fine chemical industry, most of them are small and medium-sized enterprises. The technology is relatively backward and the product quality is not high. Therefore, the pressure on the chemical industry is greater than that of other large chemical industries in a short period of time. At the same time, there are many types of fine chemicals, so the impact of joining the WTO on various specific industries is not exactly the same. The pesticide industry has a greater impact on the industry. Due to the fact that most of the 2,000 pesticide production enterprises are lagging behind in process technology, products and equipment are aging, the scale of production is small, and the quality of products is poor. Some companies are still producing highly toxic or highly residual products that have long been banned or restricted from use abroad. After joining the WTO, these companies will be subject to greater impact and even difficult to establish. However, it has brought development opportunities to enterprises engaged in the development of pesticides or focusing on the development of new products and technologies and the introduction of new technologies. In recent years, the state has invested a considerable amount of funds to support the creation of new pesticides. At the same time, China has also strengthened the cooperation with foreign pesticide companies to create and develop new products, such as the cooperation between Shanghai Pesticide Research Institute and Bayer, Shenyang Chemical Research Institute and Roma-Haas Company. With the continuous development of new products and changes in the structure of pesticide products, the dysentery that has been difficult to treat for many years has been changed. In the long run, joining the WTO will benefit the development of China's pesticide industry, and it will also benefit China's agricultural development and environmental protection.
Spice flavor industry At present, the annual demand for various flavors in the domestic market is 80,000 - 90,000 tons, and its Chinese products only account for 1/3. After China's accession to the WTO, tariffs have further decreased, the prices of imported products have also been reduced, and the market share of domestically produced goods may have decreased.
Various types of auxiliary industries will also have a great impact on the industry. Rubber Additives: Because tire manufacturers will be severely impacted, the related rubber chemicals industry will also be affected. In addition, China's current high quality varieties of rubber additives, after joining the WTO, foreign high-quality products will fill this vacancy. Plastic auxiliaries: At present, China's plastic auxiliaries manufacturing enterprises are small in scale, lag behind in technology, high in cost, unstable in raw material supply, and poor in product quality, and cannot meet the needs of the domestic plastics processing industry. In recent years, imports have been large, resulting in domestic The operating rate of production facilities is insufficient, and most companies have difficulties in operating. After entering the WTO, the days of such companies will be even more sad. Paper-making chemicals: Small but decentralized production systems for paper chemicals will be replaced by large companies. Therefore, in the development of new products, it must be brought into line with international standards as soon as possible, not only the importance of the synthesis of paper-making chemicals, but also the research of applied technologies. In addition, the photosensitive materials, high water absorbent resins, some medicines, dye intermediates and other industries will also have varying degrees of impact.
In the field of fine chemicals, some industries have opened up earlier and have a certain degree of competitiveness. The impact of China's accession to the WTO will outweigh its disadvantages. For example, in the cosmetic and detergent industry, at present, there are 570 joint ventures in the cosmetics industry in China, and annual sales have accounted for more than 40% of the total sales of cosmetics in the country. Some of the world's leading cosmetic multinational companies have invested in factories in China. Cosmetics production and consumption have been internationalized. After joining the WTO, although the tariffs on imported cosmetics will be significantly reduced, the prices are still high. In a considerable period of time, consumers who buy imported cosmetics are still a minority, so they will not cause a big impact on domestic cosmetics production enterprises. China's laundry industry was also a joint venture with well-known foreign multinationals earlier, and the domestic market has become increasingly international. The soap production of the joint venture has accounted for about 50% of the national soap production. The detergent industry has undergone major changes in its corporate structure since 1993, with joint ventures and foreign-owned enterprises producing about 30% of the country's total output. In addition, fats and oils used to rely on imports of palm oil, beef and sheep oil, the original high tariffs, raw materials products to reduce import tariffs, these industries are beneficial. In addition, China's accession to the WTO is beneficial to some of China's traditional export of fine chemicals such as citric acid, lactic acid, vitamin C, xylose and xylitol, and inositol.
It should be noted that joining the WTO is a two-way market opening process. While opening up the domestic market for foreign products and enterprises, it will also bring new business opportunities for domestic companies and products to enter the international market. Of course, only products and companies with competitive strengths and advantages can enter the international market. At present, most of the fine chemical companies in China are not competitive. Therefore, in the period after China's accession to the WTO, China's fine chemical industry will be in competition. Disadvantages. Due to the large market for fine chemicals in China, it will provide business opportunities to foreign companies with competitive advantages. In fact, since China’s reform and opening up, many foreign fine chemicals have entered the Chinese market. Many of these foreign companies have invested in cooperation with domestic units to develop fine chemical technology and products, and established joint ventures or wholly-owned facilities to build fine chemical production facilities. A very good benefit.
Therefore, in the long run, China's accession to the WTO will promote the healthy development of the domestic fine chemical industry and create a better environment for qualified foreign companies to enter the Chinese market, which will help strengthen cooperation and common development.