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Future development of the plastics industry
In the first place, the industry must speed up its shift toward quality and efficiency. Since the 12th Five-Year Plan, China has grown into the world's largest producer and consumer of plastic products. This growth is largely attributed to the reform and opening-up policy, which was fueled by the rapid expansion of the national economy. During this stage, the main characteristic was large-scale investment aimed at quickly increasing production capacity. However, driven by a quantity-focused approach, some products have now faced overcapacity, and future expansion will be more constrained.
Moreover, the room for technological advancement is shrinking, so the pace of rapid technological leaps will slow down significantly. Future development will require more innovation. Historical economic trends also show that as industrialization progresses and the catch-up phase ends, domestic demand growth will gradually decline. When per capita GDP reaches around 11,000 international dollars (in 2013, China’s per capita GDP was approximately 10,000 international dollars), the peak in production of key industrial products tends to occur. As a result, the transition from high-speed to more sustainable growth is unavoidable. We must therefore be well-prepared for this shift, adapt to a slower growth environment, and focus on transitioning from quantity-driven to quality-driven development.
Secondly, overcapacity reflects the imbalance between production and demand. The plastics processing industry is a fast-growing sector within the manufacturing field, but certain products are currently experiencing structural overcapacity. This overcapacity leads to cutthroat price competition, causing market disorder, damaging the industry's reputation, reducing company efficiency, and hindering healthy development. To address overcapacity, we must prevent new surpluses from emerging, avoid blind expansion, and focus on resolving existing excess inventory. Additionally, we should implement measures such as elimination, transformation, upgrading, and relocation based on four key principles.
Thirdly, it is essential to fully recognize that the nature of development opportunities and challenges in the plastics processing industry has changed significantly. As an emerging manufacturing industry, the plastics sector faces both unique opportunities and serious challenges. It is important to continue leveraging competitive advantages while constantly improving the quality and efficiency of development.
Jiuzhi Plastics Network