In a strategic move to bolster one of its cornerstone sectors, seven Chinese ministries-including the Ministry of Industry and Information Technology (MIIT), Ministry of Ecology and Environment, and Ministry of Emergency Management—jointly issued the "Work Plan for Steady Growth in the Petrochemical and Chemical Industry (2025-2026)" on September 26, 2025. This comprehensive policy framework sets an ambitious target: achieving an average annual growth rate of over 5% in the industry's added value through 2026. Amid global supply chain disruptions, energy transitions, and domestic economic pressures, the plan underscores Beijing's commitment to stabilizing output while accelerating high-quality development.
The primary purpose of the scheme is twofold: to ensure short-term economic stability and foster long-term structural transformation.
Key measures outlined in the document span multiple fronts. First, it prioritizes capacity optimization: strict controls on new refining projects to curb oversupply, coupled with expansions in high-value segments like specialty chemicals. Second, innovation is central, with mandates for R&D investments in digital empowerment-such as AI-driven process optimization and blockchain for traceability—and essential safety enhancements, including automated hazard detection systems. Third, supply chain resilience is targeted through diversified sourcing and localization of critical intermediates. Fiscal incentives, including tax rebates for green tech adoption and subsidies for digital upgrades, will support implementation. Environmental safeguards are woven in, mandating low-carbon transitions like hydrogen integration in ethylene production. Monitoring mechanisms, led by MIIT, will track progress quarterly, with adjustments based on real-time data.
The plan directly involves a broad spectrum of products, focusing on high-end and strategic materials. Core areas include petrochemical basics like ethylene, propylene, and aromatics, but with emphasis on value-added derivatives such as engineering plastics (e.g., polycarbonate, nylon), specialty chemicals (surfactants, adhesives), and advanced new materials (bio-based polymers, high-performance fibers). Refining outputs like gasoline and diesel face capacity caps, while battery-grade chemicals for EVs-lithium salts and electrolytes-receive priority boosts.
This product-centric strategy addresses vulnerabilities in import-dependent chains, aiming to elevate domestic self-sufficiency from 85% to over 90% by 2026.
The industry impacts are profound and multifaceted.
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