Fu Xiangsheng, vice president of the Petrochemical Federation: The new opportunity of the 20th National Congress of the Communist Party of China is both Chinese and the world

On November 17, the "Global Energy and Chemical Market Outlook Sub-forum" jointly hosted by the China Petroleum and Chemical Industry Federation and S&P Global was held
by video.
Compared with previous years, the international and domestic environment has undergone great changes this year, which has caused serious impacts and new challenges
to global economic development, international cooperation and industrial chain and supply chain security.
In his speech, Fu Xiangsheng, Vice President of the Petrochemical Federation, first emphasized the important new opportunities provided by the 20th National Congress of the Communist Party of China to open a new journey of China's high-quality development, then analyzed the new challenges facing the current global energy and chemical markets, and finally shared with the participants the new opportunities and new future
brought by China's strong market demand to Chinese and foreign enterprises.
The following is specially edited for the reference
of colleagues who are concerned about the petrochemical industry.

1.
The victorious convening of the 20th National Congress of the Communist Party of China has provided new opportunities
for China to embark on a new journey of high-quality development.

The 20th CPC National Congress is a very important congress
held at a crucial moment when the whole party and the people of all ethnic groups throughout the country are embarking on a new journey of comprehensively building a modern socialist country and marching toward the goal of the second centenary struggle.
It not only summed up the achievements of the past five years and the great changes made in the past decade since socialism with Chinese characteristics entered a new era, but also pointed out that from now on, the central task of the Communist Party of China is to unite and lead the people of all ethnic groups in the country to build a modern and powerful socialist country in an all-round way, realize the second centenary goal, and comprehensively promote the great rejuvenation
of the Chinese nation with Chinese-style modernization.
He also emphasized that "Chinese-style modernization is modernization that takes the path of peaceful development"
.
Promote high-level opening up to the outside world, and steadily expand the opening up
of rules, regulations, management, standards and other systems.
Reasonably reduce the negative list for foreign investment access, protect the rights and interests of foreign investment in accordance with the law, and create a market-oriented, legal, and international first-class business environment
.

The spirit of the 20th National Congress of the Communist Party of China on deepening reform and opening up is in line with the spirit of the series of important speeches made since the 18th National Congress of the General Secretary, building a new development pattern with the domestic cycle as the main body and the domestic and international dual circulation promoting each other.

China's vast domestic demand market will continue to stimulate a steady stream of innovation potential, making the Chinese market a world market, a shared market, and a market for everyone, injecting more positive energy
into the international community.

The 20th National Congress of the Communist Party of China solemnly reaffirmed that development is the first priority of the party's governance and rejuvenation of the country, especially emphasizing that high-quality development is the primary task of comprehensively building socialist modernization, innovation is the core position in the overall situation of China's modernization construction, and the strategic deployment of accelerating the goal of building a manufacturing power, a network power, a quality power, and a transportation power, so that we are more confident in the future of China's high-level opening up to the outside world, and create many new market demand
for petrochemical products and new chemical materials 。 Because the realization of the goal of becoming a strong country is inseparable from the supporting and support of petrochemical products and new materials, this provides many new opportunities
for the development of multinational companies in the petrochemical field in China and the creation of world-class domestic high-quality enterprises and advanced production capacity.

2.
The current global energy and chemical market has encountered new challenges
.

At present, the world's unprecedented major changes in a century have accelerated the evolution, a new round of scientific and technological revolution and industrial transformation has developed in depth, and the international balance of power is being profoundly adjusted, especially the continuation of the epidemic, coupled with the sudden Russian-Ukrainian conflict this year, which has accelerated the reconstruction of the world's petrochemical industry, and the global energy and chemical markets have encountered new challenges
.

First, the challenge
of the global economic downturn.
According to the latest forecasts of the world economy by international organizations such as the OECD and the International Monetary Fund, the global economic growth rate this year is about 3%, significantly lower than last year's 6.
1%; Next year's forecast is more pessimistic, and next year's forecast will be worse than this year, the world economy growth rate is only about 2.
2%, the growth rate of the United States is only 0.
5%, the growth rate of the eurozone will slow sharply to 0.
3%, and Germany will contract by 0.
6%.

The main reason is that inflation has reached its highest level in decades, and tighter economic policies, the Ukraine crisis and the continuation of the epidemic will seriously affect global economic growth
.
The probability of recession in advanced economies, especially in Europe, due to the impact of the energy crisis and rising inflation, is increasing
.

Second, the continuous turbulence of big country games and geopolitical conflicts has caused a serious impact
on the industrial chain and supply chain.
The big power game is intensifying trade protectionism and unilateral sanctions, and even developing to the decoupling of the proposed industrial chain and supply chain, especially the energy crisis caused by sudden geopolitical conflicts, natural gas supply cuts, affected by high energy prices, many industrial sectors in Europe are reducing production
.
In October, the German Handelsblatt reported: In order to save natural gas and electricity, the energy-intensive industry steel production reduced by about 5%, the chemical industry reduced production by 8%, and the fertilizer industry even closed 70% of Germany's production capacity, resulting in the risk of unstable, unsustainable and even supply interruption of the industrial chain and supply chain
.

Third, the global petrochemical market has been deeply impacted
.
The decline of the global economy directly affects the petrochemical industry, and the stability and even security of the global industrial chain and supply chain are facing challenges
.
The global petrochemical market has also been deeply affected, and the performance of multinational companies and many petrochemical companies this year is far from last year, especially in Europe
, an important region of the world's chemical industry.
The interruption of natural gas supply has a serious impact on the supply chain of the European chemical industry, because 40% of the natural gas consumed in Europe is used as a raw material for the production of chemicals, which was originally thought to be a year worth looking forward to, but now it seems that it will become a year of suffering, and from the current situation, it will be difficult to improve next year
.

3.
China's petrochemical industry has once again shown a continuous improvement in the fundamentals
.

First, economic indicators continue to improve
.
In the first three quarters of China's petrochemical industry, the industry-wide operating income exceeded 12.
25 trillion yuan, a year-on-year increase of 18.
5%; Total profit was RMB979.
4 billion, a year-on-year increase of 7.
6%; Since the second half of the year, the impact of benefits has been more serious, with the year-on-year growth rate falling sharply from 24% in the first half of the year to 7.
6%
in the first nine months.
Now looking at the fourth quarter, it is stabilizing and improving, and on the basis of last year's economic indicators hitting a record high, we expect to usher in another harvest year
this year.

Second, the import and export situation of foreign trade continued to improve
.
In the first nine months, the total import and export volume of the petrochemical industry was 787.
04 billion US dollars, a year-on-year increase of 27.
4%, of which the import value was 516.
67 billion US dollars, a year-on-year increase of 27.
2%.

Under the serious setback of the global petrochemical industry due to the energy crisis, the total import and export volume of China's petrochemical products, as well as the import and export value of Sinopec products, increased by more than 27% year-on-year, which once again proved that the strength of China's economy, the stability of its production and operation and the sustainability of the industrial chain and supply chain are better
.

Third, the potential of the Chinese market has been further revealed
.
At present, China's total trade in goods, manufacturing scale and foreign exchange reserves rank first in the world, and its population of 1.
4 billion has huge untapped market potential
.
In the first nine months, the Chinese market consumed 246 million tons of refined oil, more than 22.
5 million tons of ethylene, more than 52 million tons of methanol, of which imports accounted for 17.
9%, synthetic resin consumption was close to 96 million tons, of which imports were more than 20%, and polyethylene imports were as high as 37%.

In the first nine months, the trade deficit of the petrochemical industry was close to 250 billion US dollars, a year-on-year increase of 26.
4%.

China's huge and stable consumer market is the stabilizer and growth engine of the sustainable operation of the world petrochemical industry, without the support and support of China's huge petrochemical market, and the stability of China's most complete industrial chain supply chain from oil and gas exploration and exploitation to petrochemical products and synthetic materials, the situation of the global petrochemical industry may be even
bleaker.

At present, the entire petrochemical industry and the vast number of petrochemical enterprises are conscientiously studying and implementing the spirit
of the 20th National Congress of the Communist Party of China.
The strategic goals established by the 20th National Congress of the Communist Party of China have put forward new market needs and opportunities
for petrochemical products and petrochemical materials, as well as Chinese and foreign petrochemical enterprises.
It is hoped that we will join hands to make new efforts to build a new development pattern in which domestic circulation is the main body and domestic and international dual circulation promote each other, provide new opportunities for the world with China's new development, and jointly cultivate new momentum
for global development.