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AICM deepens China engagement amid resilient chemical demand

By Zhong Nan | chinadaily.com.cn | Updated: 2026-01-26 17:43
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Representatives from the Investment Promotion Agency of the Ministry of Commerce and the Association of International Chemical Manufacturers sign a strategic cooperation agreement in Beijing on Jan 19. [Photo provided to chinadaily.com.cn]

With strong demand for chemical products continuing across China's industrial sectors, the Association of International Chemical Manufacturers (AICM) is deepening its engagement in the country by strengthening policy dialogue and supporting the high-quality growth of foreign-invested chemical companies, said its top executive.

This commitment was underscored by a newly signed cooperation framework with Chinese authorities. The Shanghai-headquartered global industrial organization signed a strategic cooperation agreement with the Investment Promotion Agency of the Ministry of Commerce on Jan 19 in Beijing. The agreement aims to enhance communication and industrial matchmaking for foreign-funded chemical businesses.

The two sides will jointly establish regular forums for CEOs of multinational chemical companies operating in China, aiming to improve policy transparency and a favorable business environment.

Xia Fuliang, chairman of AICM, emphasized that the cooperation reflects China's efficient governance and its commitment to supporting high-quality foreign investment.

"Clear, direct and timely policy communication is the most important foundation for long-term investment decisions," Xia said, noting that such mechanisms significantly enhance the confidence of multinational corporations in China.

Founded in 1988, AICM has been a key player in China's chemical industry for nearly four decades. Its members include companies from Europe, North America, Asia and the Middle East, which have contributed to the sector's rapid transformation from fragmented production to large-scale, integrated and increasingly low-carbon development.

China now accounts for about 42 percent of global chemical output, a share widely expected to approach 50 percent by 2030. This is not only a huge market, but one fulfilled with structural opportunities, said Xia, who also is president of China operations at German specialty chemicals group Evonik and the company's head of segment customs solutions for Asia-Pacific region.

AICM revised its mission in 2025 to reflect changes in the chemical industry's operating environment in China, placing greater emphasis on innovation, green transition and production safety.

Multinational chemical companies are also moving away from price-based competition, bringing advanced technologies and processes to China and increasingly serving global markets through their China operations.

Believing that green transition is an opportunity rather than a constraint, Xia said that chemical materials are essential inputs for renewable energy, electric vehicles and energy efficiency upgrades, making the sector a key driver of China's dual-carbon goals.

Despite global economic uncertainties, investment momentum among multinational chemical companies in China has remained resilient. Major projects include ExxonMobil's large-scale petrochemical complex in Guangdong province, SABIC's investment project in Fujian province, and Evonik's specialty chemicals projects in Jiangsu and Sichuan provinces.

Looking ahead, Xia said demand for specialty chemicals will continue to expand in sectors such as new energy vehicles, pharmaceuticals, healthcare and high-end equipment. As China advances rapidly in digitalization and artificial intelligence, the chemical industry is also accelerating the use of smart manufacturing, data-driven safety management and AI-assisted research and development.

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