High-quality development of petrochemical industry on cards

China has vowed high-quality development of the country's petrochemical and chemical industries during the 14th Five-Year Plan period (2021-25), eyeing to extend its petrochemical industry chain with its rate of capacity utilization for bulk chemical products exceeding 80 percent by 2025.

The government will also come up with 30 smart manufacturing demonstration plants and 50 smart chemical demonstration parks, as the country is on its way to a green energy transition.

China's Ministry of Industry and Information Technology has launched a set of guidelines recently for the development of the petrochemical industry, part of its efforts to promote refining and production to reduce the output of refined oil products and increase chemical products to extend the petrochemical industry chain, said Xinhua News Agency.

China's petrochemical industry will follow a high-quality development pattern featuring a strong independent innovation capability, with a reasonable structural layout that is green, safe, and low-carbon, it said.

The country will also strictly control new capacity in its oil refining industry and will accelerate the elimination of inefficient and outdated production.

The ministry also urged refineries to adopt better technologies to reduce emissions as China, the world's second-largest economy, has vowed to continue improving air quality while meeting climate change pledges.

According to Luo Zuoxian, head of intelligence and research at the Sinopec Economics and Development Research Institute, the high-quality development and the upgrade of petrochemical and chemical industry products has a significant role in the country's manufacturing quality improvement.

The petrochemical and chemical industries, with an improved layout and the application of new technologies, will further promote the country's economic and social development, he said.

According to industry insiders, innovation and integrated innovation capabilities in the industry will continue to be enhanced. By 2025, research and development investment of enterprises above designated size will account for more than 1.5 percent of the main business income.

According to a five-year plan on energy conservation and emission reduction released by the State Council, China will appropriately control its total energy consumption and cut it by 13.5 percent per unit of gross domestic product by 2025 compared with 2020 to lay a solid foundation to achieve carbon neutrality.