China has enjoyed unprecedented growth in the plastics manufacturing sector and currently ranks third in the world for the production of petrochemicals and plastics. Key constituents of plastics manufacturing have been steadily taking their business to China, resulting in the creation of the latest and most cutting edge polymer production facilities the world over. It is a fact that over 80% of the 500 largest global companies have invested or begun maintaining a presence on the mainland of China. Some of these companies include Bayer, Exxon Mobile, Shell, DuPont and Dow Chemical just to name a few.
Caojing and Nanjing are some of the newer companies that have benefited from partial financing from foreign companies. With increased foreign investment, China is on track to become the world’s number one plastics manufacturer by 2025 (if not sooner). The country is also becoming a hub of research and development, with major companies like KPMG helping to contribute in this regard. China is continuing to equip itself to meet the growing demand for plastics materials and petrochemicals in the twenty-first century by investing in infrastructure, building new plants in industrial zones like the Yangtze River Delta and Shanghai Chemical Industry Park.
In an effort to improve its appeal to the growing interest by foreign investors, China became a member of the World Trade Organization just over a decade ago. China’s Ministry of Commerce has since taken steps to help ensure that the environment for investors is safe and hospitable. The Ministry has undergone steps to increase transparency, allowing investors to sue Chinese government departments if there are potential disputes. This critical step has helped to assure investors that their funding is protected and that there will be a level of accountability that was previously unavailable.
China is already playing a vital role in the world’s plastics production and with demand on the rise, this country is continuing to take all of the necessary steps in order to improve its ability to meet such growing demand. This will all but ensure that China reaches the number one spot as the primary global plastics and petrochemicals supplier in the near future.