Research On Trade Competitiveness Of Chinese Chemical Industry

First, the development of China’s chemical industry and an overview of the background are analyzed; the grim situation of China’s chemical industry and the problems to be solved are emphasized. With globalization in the international community intensifying, the deficit situation of China’s chemical industry trade has not been improved; most production process may be at the low end of the global industrial chain; a lot of sophisticated technology-intensive products need to be imported from abroad. However the trade volume is huge, development imbalances are rendered. Then the literature of China’s chemical industry trade competitiveness at home and abroad, including the theoretical basis of international competitiveness are summarized and the theory of comparative advantage, factor endowment theory, ownership advantages theory, new trade theory and Porter’s theory of international competition are also analyzed.Second, the current situation of the trade of China’s chemical industry, production and management are analyzed. On the aspect of production and operation, although the total amount of China’s chemical industry is large, the competitiveness is weak, of which the problem of extensive production and investment is serious. On the aspect of trade, China’s chemical products in recent years encountered anti-dumping and anti-countervailing, which undermine the international competitiveness of China’s chemical products trade. With the rapid development of the chemical industry in the production and trade, problems of excessive consumption of resources, low level of production and operations, technological innovation and new product development to keep up with international standards still exist. The overall international competitiveness, compared with the traditional chemical industrial countries, is still weak. At the same time China also faces challenges of Indonesia and other developing countries.Third, the international competitiveness of China’s chemical products trade is empirically analyzed, including the main factors affecting the international competitiveness of China’s chemical products, totaled nine indicators. Then through the empirical analysis of OLS, the factors affecting China’s chemical industry trade international competitiveness are analyzed. Empirical results show that raw materials and energy costs, the net fixed assets per capita and industrial concentration have reverse effects on the international competitiveness of China’s chemical products; labor productivity, the proportion of investment in research and enterprise scale have positive effects on the international competitiveness of China’s chemical products.Last, the policy suggestions for the future development of China’s chemical industry are come up with from the respective of industrial structure, research investment, foreign investment and anti-dumping strategies to strive to further strengthen the international competitiveness of China’s chemical industry trade.