“Low-Carbon Transition” + “Technological Restructuring”: Fine Chemicals Industry Undergoes Profound Transformation
Industry Insight: Policy guidance, green innovation, and digital empowerment drive China’s fine chemicals sector toward high-quality development—key takeaways from the 25th Fine Chemicals Industry Conference.
The 25th Fine Chemicals Industry Conference, held in Ningdong, Ningxia (December 4–5), gathered experts, industry leaders, and policy representatives to decode the deep transformation of China’s fine chemicals industry. Centered on the theme “Fine Chemicals Lead Development, Green Transformation Empowers the Future,” the event highlighted four core drivers: low-carbon transition, technological restructuring, digital empowerment, and high-quality growth.
Hosted by the China National Chemical Information Center and the China Chemical Industry Information Association, and co-organized by Ningxia Ningdong Development and Investment Co., Ltd. and other institutions, the conference released critical industry data, policy interpretations, and forward-looking insights that will shape the sector’s development trajectory.
Recent policy initiatives have laid a solid foundation for the fine chemicals industry’s transformation:
• In 2024, nine ministries jointly issued the “Implementation Plan for Innovative Development of the Fine Chemicals Industry (2024–2027)”—a landmark document guiding industrial upgrading.
• In November 2025, the Ministry of Industry and Information Technology (MIIT) launched the “2025 Fine Chemicals Key Product Innovation Task”—targeting breakthroughs in 50 key technological products to strengthen supply chain security in emerging fields (new energy vehicles, medical equipment, communication technologies).
These policies underscore the country’s focus on enhancing the industry’s resilience, innovation capability, and global competitiveness.
Wang Wu, Deputy General Manager of the China National Chemical Information Center, emphasized that the global chemical industry is facing opportunities and challenges brought by low-carbon transition and technological restructuring. As the core of high-quality petrochemical development, fine chemicals play a pivotal role in the integrated innovation of strategic emerging industries.
Today, the industry is undergoing a profound shift marked by three key directions:
✅ Refinement: Moving toward high-value, specialized products to meet downstream demand for customization.
✅ Green Development: Prioritizing environmental protection and carbon reduction to align with dual-carbon goals.
✅ Digitalization: Integrating digital technologies to optimize production and management efficiency.
Liu Yu, Vice President and Secretary-General of the China Chemical Industry Information Association, pointed out a critical gap: China's fine chemical rate is still about 20 percentage points lower than that of the EU and Japan. Accelerating industrial upgrading through technological innovation is essential for achieving high-quality development.
Fu Xiangsheng, Vice President of the China Petroleum and Chemical Industry Federation, highlighted the strategic significance of coal chemicals amid China’s “coal-rich, oil-poor, gas-limited” resource structure:
• National Energy Strategy: Western China’s large-scale energy and chemical bases (including the world’s largest single coal-to-liquids project) are vital for energy security.
• Development Direction: Coal chemicals must advance toward high-end, diversified, and low-carbon development, with core technology innovation as the top priority.
• Green Approach: Moderately developing modern coal chemicals through innovation-driven and green practices to maximize resource utilization.
Yuan Longhua, Deputy Director of MIIT’s Raw Materials Department, emphasized that fine chemical processes are complex and hazardous, requiring the industry to:
• Promote clean production, recycling, energy conservation, and carbon reduction.
• Accelerate intelligent upgrades to build green factories, green parks, and green supply chains.
Ling Zhen, Deputy Director of the Ningdong Energy and Chemical Industry Base, added that developing new quality productive forces (high technology, strong innovation) is key to enhancing the competitiveness of fine chemical clusters under dual-carbon goals.
Digital transformation has become a key driver for the fine chemicals industry’s high-end development. Industry leaders and experts outlined two core directions:
Leveraging 5G, 6G, big data, cloud computing, IoT, AI, and blockchain to build first-class smart factories—optimizing production efficiency, supply chain collaboration, and refined management.
Digitalization is not limited to individual enterprises: building smart parks will enhance industrial synergy, reduce operational costs, and support the integration of green and low-carbon practices across the entire industrial chain.
Yuan Longhua further emphasized that digital empowerment will enable intelligent manufacturing and collaborative supply chains, driving the industry toward high-quality growth.
Key data released at the conference reflects the fine chemicals industry’s robust development:
• 2024 market size: 3.96 trillion RMB, a year-on-year increase of 7.5%.
• 2025 projected market size: Exceeding 4.1 trillion RMB, maintaining steady growth.
This growth is supported by strong demand from downstream sectors and continuous investment in innovation and green transformation.
Experts and policymakers offered four key recommendations to guide the industry’s future:
• Increase R&D investment to address weak links in the industrial chain.
• Overcome critical bottlenecks in key technologies and materials to seize the technological high ground.
• Strengthen park-based clustering (currently less than half of fine chemical enterprises are in industrial parks).
• Reduce regional imbalances and enhance industrial and supply chain synergy.
• Enhance self-reliance in critical materials to ensure supply chain resilience.
• Deepen joint R&D with downstream sectors to align with market demand.
• Adopt AI, big data, and biomanufacturing to drive technological upgrading.
• Implement new internationalization strategies to adapt to global market changes, reduce risks, and enhance competitiveness.
Yang Bo, representative of the Ningdong Base, introduced its rapid development as the largest fine chemicals hub in Western China. The base focuses on four core sectors: modern coal chemicals, new materials, fine chemicals, and low-carbon specialty industries.
It is actively attracting high-value projects such as:
• Catalysts and functional additives
• Biopharmaceuticals and green pesticides
• High-end coatings, fragrances, and food additives
The Ningdong Base’s success demonstrates the potential of regional clustering and green development in driving the fine chemicals industry forward.
• Intrinsic Safety: She Yuanbin, professor at Zhejiang University of Technology, emphasized that fine chemicals must achieve safety through design, technical, and quality improvements to address process complexity and hazards.
• High-Performance Materials: Academician Jian Xigao shared breakthroughs in new heterocyclic high-performance engineering plastics—a critical area for reducing reliance on imports.
• Enterprise Transformation: He Chun, Senior VP of Lianhe Chemical Technology, discussed practical cases of innovation-driven transformation, highlighting how enterprises can balance growth and sustainability.
The conference released the China Fine Chemicals TOP100 list, with Liang Minyan noting strong growth in segments such as electronic chemicals, adhesives, and intermediates. To further enhance product added value, the industry should:
1. Learn from leading companies in green carbon reduction, global operations, and innovation.
2. Deepen collaboration across the industrial chain to improve self-reliance in critical materials.
3. Embrace cross-domain technologies and new internationalization strategies to adapt to global market changes.
This article summarizes key insights from the 25th Fine Chemicals Industry Conference. For detailed reports, policy documents, or the full China Fine Chemicals TOP100 list, refer to the official publications of the China National Chemical Information Center or the China Chemical Industry Information Association.
