The Chinese market in the eyes of foreign chemical companies: trade frictions, relocation to parks, poor communication···

Global Coatings Network News:

Global Coatings Network News:

Since the reform and opening up, foreign-funded chemical companies have shown a momentum of blowout development in China.

Since the reform and opening up, foreign-funded chemical companies have shown a momentum of blowout development in China.

Recently, the "2019 AICM Sustainability Report" (hereinafter referred to as the "Report") organized and compiled by the International Association of Chemical Manufacturers (AICM) was released, which analyzed and looked forward to the status quo of the development of multinational companies.

Layout orientation: policy and market

Regarding the main driving force and strategic matching decisions of foreign-funded chemical companies in China, 66.

The "Report" summarizes the solutions proposed for the difficulties of policy matching in the development of foreign-funded chemical companies, mainly including: hope to enjoy the same treatment as local companies in terms of policies; simplify administrative procedures and tax incentives; hope for more scientific policies Formulate methods and implement policies tailored to local conditions; the state increases special support for emerging and high-tech industries, etc.

Trade frictions have little impact on foreign-funded chemical companies

In terms of the impact of trade frictions on the development of enterprises, the overall impact on foreign chemical companies is not significant: 75.

The "Report" suggests that companies can adjust the industrial chain structure and supply chain structure in time to minimize the impact of trade frictions in response to trade frictions.

The status quo of communication between foreign-funded enterprises and the government

The status quo of communication between foreign-funded enterprises and the government

83.
3% of the surveyed member companies stated that they have established a dedicated department to communicate with the government and will regularly participate in meetings held by the government, so that more stable exchanges can be reached between the company and the government.
Positively related to the proportion of communication departments, 63.
6% of the surveyed member companies indicated that they did not have too much communication with the government, and that they had invested more in communication; 36.
4% of the surveyed member companies believed that they had no difficulty in communicating with the government.
Difficulties encountered in communication are mainly due to the fact that sometimes it is difficult for companies to communicate directly with the government, and there are still few opportunities for communication.

83.
3% of the surveyed member companies stated that they have established a dedicated department to communicate with the government and will regularly participate in meetings held by the government, so that more stable exchanges can be reached between the company and the government.
Positively related to the proportion of communication departments, 63.
6% of the surveyed member companies indicated that they did not have too much communication with the government, and that they had invested more in communication; 36.
4% of the surveyed member companies believed that they had no difficulty in communicating with the government.
Difficulties encountered in communication are mainly due to the fact that sometimes it is difficult for companies to communicate directly with the government, and there are still few opportunities for communication.

In response to the problem of communication between foreign-funded enterprises and the government, the "Report" proposes some solutions:

In response to the problem of communication between foreign-funded enterprises and the government, the "Report" proposes some solutions:

It is hoped that the government can establish inter-departmental coordination functions to enable unified coordination among multiple departments;

It is hoped that the government can establish inter-departmental coordination functions to enable unified coordination among multiple departments;

At present, foreign-funded chemical companies have spent a lot of energy to understand the government, hoping that the government can provide foreign-funded chemical companies with more opportunities for communication.

At present, foreign-funded chemical companies have spent a lot of energy to understand the government, hoping that the government can provide foreign-funded chemical companies with more opportunities for communication.

Before the policy is promulgated, if the government can negotiate and communicate more with relevant companies and combine opinions from more parties, the applicability of the policy will be more reasonable.

Before the policy is promulgated, if the government can negotiate and communicate more with relevant companies and combine opinions from more parties, the applicability of the policy will be more reasonable.

After the policy is promulgated, it is hoped that the government can issue policy interpretations and explanations for related companies at the same time to reduce misunderstandings of the policies by companies.

After the policy is promulgated, it is hoped that the government can issue policy interpretations and explanations for related companies at the same time to reduce misunderstandings of the policies by companies.

The hidden worries of moving into the park

The hidden worries of moving into the park

The Chinese government vigorously promotes the relocation policy of chemical companies, which not only has a positive impact on the management of the chemical industry, but also makes many chemical companies face the choice of relocation and closure.

The Chinese government vigorously promotes the relocation policy of chemical companies, which not only has a positive impact on the management of the chemical industry, but also makes many chemical companies face the choice of relocation and closure.

In the process of implementing the policy, the stability of the park is an issue that chemical companies are very worried about.
For example, the policy is still unclear on key issues such as whether the park is stable, the time to complete the relocation, and relocation compensation.
Government decision-making departments also have policy interpretation and communication.
insufficient.
In addition, some interviewed member companies said that although the company itself is not affected, its suppliers and other partners are facing the problem of moving into the park, and the entire industrial chain will be affected to a certain extent.

In the process of implementing the policy, the stability of the park is an issue that chemical companies are very worried about.
For example, the policy is still unclear on key issues such as whether the park is stable, the time to complete the relocation, and relocation compensation.
Government decision-making departments also have policy interpretation and communication.
insufficient.
In addition, some interviewed member companies said that although the company itself is not affected, its suppliers and other partners are facing the problem of moving into the park, and the entire industrial chain will be affected to a certain extent.

In response to this problem, the interviewed member companies expressed their hope that the government can study and formulate compensation policies more specifically, such as linking to corporate profits in the past few years; hope that government departments can further strengthen communication with companies and make policies more effective.
Transparent and clear.

In response to this problem, the interviewed member companies expressed their hope that the government can study and formulate compensation policies more specifically, such as linking to corporate profits in the past few years; hope that government departments can further strengthen communication with companies and make policies more effective.
Transparent and clear.

China will become a hot spot for foreign-invested chemical companies in research and development

China will become a hot spot for foreign-invested chemical companies in research and development

Regarding whether foreign chemical companies invest in R&D in China, 100% of the surveyed member companies hope to invest in R&D in China, and 66.
7% of the surveyed member companies expressed a strong willingness to invest.
They believe that they will transfer their innovative R&D work to China is an inevitable choice in the future, and another 33.
3% of surveyed member companies said they also have the possibility of establishing R&D centers in China in the future.
Moreover, the focus of foreign-invested chemical companies in China’s R&D investment layout lies in “development”, that is, to meet the needs of new markets and new customers, and to create products that meet the requirements, rather than doing some basic levels or technical theories to obtain intellectual property rights.
Research and innovation at the level.
For example, technical research and development support, helping to formulate industry standards, promoting process innovation, and optimizing production process systems.

Regarding whether foreign chemical companies invest in R&D in China, 100% of the surveyed member companies hope to invest in R&D in China, and 66.
7% of the surveyed member companies expressed a strong willingness to invest.
They believe that they will transfer their innovative R&D work to China is an inevitable choice in the future, and another 33.
3% of surveyed member companies said they also have the possibility of establishing R&D centers in China in the future.
Moreover, the focus of foreign-invested chemical companies in China’s R&D investment layout lies in “development”, that is, to meet the needs of new markets and new customers, and to create products that meet the requirements, rather than doing some basic levels or technical theories to obtain intellectual property rights.
Research and innovation at the level.
For example, technical research and development support, helping to formulate industry standards, promoting process innovation, and optimizing production process systems.

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