Prospects for China's Fine Chemical
                  Sector in the 21st Century
                        By Wang Daquan
Secretary-General of the Fine Chemical Sector Committee  of
China Chemical Industry Society
1. Present status of the fine chemical sector in China
The fine chemical sector, espe-cially  the  sector  of  new
field fine chemicals  ( including  feed  additives,   food
additives, surfactants, water treatment chemicals,   paper
-making chemicals, leather chemicals,  oilfield  chemicals,
adhesives,   biochemicals,   electrochemicals,   cellulose
derivatives, acrylic acid and esters,  polyacrylamide  and
aerosols), can provide various high-quality,   specialized
  and  multi- functional  fine  chemicals  and  application
technologies for different sectors of the national economy
, and play a role in enhancing function, increasing output,
reducing consumption and improving environmental protection.
  Besides  the  high  degree  of  technical  intensity  and
confidentiality, fine chemicals also have the features  of
high added value and fierce market competition. They  were
regarded as one of the strategic focuses in  the  chemical
development during the Sixth Five-year Plan  period,   the
Seventh Five-year Plan period and  the  Eighth  Five- year
Plan period. Favorable treatment has been given to them in
policy  and  investment.   More  than  100  fine  chemical
projects have been arranged so far with a total investment
of over 5 billion yuan.
After strenuous efforts for more than 10 years,   the  fine
chemical sector in China has made a rapid development. The
rate of fine chemicals has reached 35%.   New  field  fine
chemicals have also  achieved  a  considerable  production
scale. During the  Eighth  Five- year  Plan  period  China
established 10 development  and  application  centers  and
over 3 900 producers of new field fine chemicals, having a
capacity of 8.8 million t/a, over 9 300 varieties  and  an
annual output value of around 62 billion yuan. Around  93%
of the 107 fine chemical research and development projects
arranged by the State Science Commission  were  completed,
60 scientific and technical results at  the  international
level were achieved, 23 scientific and  technical  results
held the leading  position  in  the  domestic  market,   3
scientific and technical  results  won  the  international
patent and 21 results won the Chinese patent, 4 scientific
and technical  results  won  the  national  prize  and  21
results won the provincial and  ministerial  prizes.   The
conversion rate reached 80% and the input-output ratio was
1 : 2.
Compared with advanced countries in  the  world,   however,
there  are  still  the  following  problems  in  the  fine
chemical sector in China: The rate of  fine  chemicals  is
still low and the  technical  level  and  the  development
ability are still not  high;   The  production  is  rather
scattered, the scale is not very rational and the economic
performance of units is still low; The product variety  is
not complete and the market  adaptability  is  poor;   The
  input  in  science  and  technology  is  little  and  the
application research and marketing are weak; The varieties
of raw materials and intermediates are incomplete and  the
pollution problem  is  still  serious;   The  policies  of
encouraging and protecting the  development  of  the  fine
chemical sector still has much to be desired.
2. Prospects for China fine chemical  sector  in  the  21st
century
(1) China fine chemical sector will come from the stage  of
introduction to the  stage  of  development  in  the  21st
century.
To suit the economic development and market demand,  change
the industrial structure and product structure in existing
enterprises, improve  economic  and  social  benefits  and
gradually link itself with the international market,   the
chemical industry in China has  once  again  regarded  the
development of fine chemicals as one of  the  3  strategic
focuses and one of the 7 major projects in the Ninth  Five
-year Plan period. The chemical industry will be pushed  to
a new high through giving the priority to the  development
of fine  chemicals.   The  rate  of  fine  chemicals  will
increase from 30 - 35% to 40 - 45% by 2000. New field fine
chemicals will be taken as the most urgent  and  important
field. The principle of aking an overall plan to achieve a
big development will  be  implemented.   A  group  of  fine
chemical development bases with special features  will  be
established. In the first lot of 18  large  fine  chemical
bases and the 15 bases in medium and  small  cities,   new
field fine chemicals will occupy a very  high  proportion.
During the Ninth Five-year Plan  period  a  group  of  new
  field  fine  chemical   sectors   will   be   formed   in
electrochemicals, food additives, feed additives,  leather
chemicals, oilfield chemicals,   paper- making  chemicals,
adhesives, water treatment chemicals and biochemicals. The
fine chemical sector in China will come from the stage  of
introduction to the  stage &