What REACH Brought to China's Petrochemical Industry

The REACH regulation came into force on June 1 last year, and the pre-registration of products will begin on June 1 this year. During the implementation of the REACH Regulation, a series of work involving registration, testing, evaluation, and market access involving more than 30,000 kinds of chemical products and 3 to 5 million kinds of applied chemicals were involved. This will have a major impact on China's petroleum and chemical industries.
The implementation of REACH regulations has certain positive significance for the development of China's petrochemical industry. The REACH regulation, which starts from the protection of human health and the safety of the environment, has made strict regulations on the development, production, sales, use, and waste disposal of chemicals, and has put forward higher requirements, forcing chemical manufacturers. We will carry out structural adjustments and adopt cleaner production processes to accelerate the process of integration with the international advanced level.
However, all chemicals sold and used in the European market must be included in the management system of registration, evaluation, and limitation. If they are not registered or approved, they cannot be sold in the European market. It is clear that the REACH regulation has the nature of trade technical barriers and trade protectionism. Authorities in the industry believe that the implementation of REACH will have some negative impact on China's petrochemical industry.
According to statistics from the customs department, from 2000 to 2002, the import and export volume of Sino-European chemical industry was 7.07 billion U.S. dollars, 6.99 billion U.S. dollars, and 8.04 billion U.S. dollars, respectively. Among them, China's exports to the EU during the three years were 2.99 billion U.S. dollars, 3.04 billion U.S. dollars, and 3.38 billion U.S. dollars, respectively. In 2006, the Sino-European chemical import and export trade volume reached 22.5 billion U.S. dollars, of which export trade volume was 11.8 billion U.S. dollars. From January to November 2007, Sino-EU chemical trade volume reached 26.3 billion U.S. dollars, of which the export trade volume was 14.2 billion U.S. dollars.
China-EU chemical trade has a certain degree of complementarity. In recent years, China’s exports to the EU are still dominated by resources and labor-intensive products, rubber products (including rubber shoes, tires, etc.), inorganic chemical materials, dyes, pigments, coatings, organic chemical intermediates, and information chemicals. (Tapes, disks, etc.) are in the front line of exports. Imports from the EU region are mainly capital and technology-intensive products, including organic chemical raw materials, synthetic resins, fine chemicals and chemical machinery equipment. Germany, Britain, Italy, France, the Netherlands and China's chemical trade volume ranked the top five.
In 2007, China's exports of chemicals to the European Union involved 923 customs tariff numbers, and 12,436 companies exported more than 10 tons, of which 798 exported 1,000 tons or more. These enterprises need to complete registration within three years. There are more than 360 varieties with more than 1,000 tons of exports. These varieties must also be registered within 3 years. The bulk products whose export amount exceeds 10 million U.S. dollars mainly include aviation kerosene, fuel oil, oxides of zinc oxide, aluminum oxide, iron, and barium, fluorspar, paraffin, silicon, yellow phosphorus, zinc sulfate, barium carbonate, and titanium dioxide. ,N-cycloalkanes,Heterocycles,Menthols,Aromatic ketones,Acidic acid and its salts,Citric acid,Amino acids,Saccharin,Pharmaceutical intermediates,Pesticides,Disperse,Acid,Alkaline,Reducing dyes,Indigo,Pigment,Poly Ester paint, activated carbon, polyvinyl alcohol, polyester chips, car tires, bicycle tires, latex gloves, rubber shoes, sports shoes, etc.
There are many varieties of chemical products exported to the EU, and they are mainly SMEs. The products that need to be registered need to provide various data and information, be subject to examination and approval, and the export procedures are cumbersome, which will cause time delays and increase the cost. This will adversely affect the export of Chinese enterprises and will greatly weaken the competitiveness of our export products.
In addition, in the oil and chemical industry chain, textiles, light industry, household appliances, IT and other industries, all products that use chemicals, are exported to the EU, will be affected to varying degrees, so that these downstream industries with export potential, Barriers to trade.
In addition to having a direct impact on China's chemical trade, the implementation of the new EU law will also generally increase the production cost of the product. Those chemical products originally costly, profitable, polluting the environment and endangering human health will be transferred from the European Union to the third world countries and are likely to be transferred to China's production.
The EU is an important source of petrochemical products in China, especially high-tech and high value-added products. After the implementation of the REACH regulation, EU chemical product manufacturers will inevitably charge high registration and evaluation costs to production and export costs, thereby increasing the export prices of products and transferring costs to Chinese import companies, which will affect China's textile, pharmaceutical, and light industry industries. Development of related industries such as electronics and automobiles.
With the introduction of the EU REACH Regulation, the United States and Japan have also successively revised their own chemical management measures, resulting in the emergence of domino effect, making trade protectionism rise and the game rules that favor the developed countries. As a developing country, China is still far from perfect in its legislative system and lacks the right to speak in international legislation. As a result, in international trade, it has made our country unfair and unfavorable.

Editor's note: In 2003, the European Union published a consultation document (REACH regulation) on the registration, evaluation, licensing and restriction of chemicals, which will replace more than 40 laws and regulations on the management of chemicals in EU countries and become a unified and efficient EU. Regulations. In view of the tremendous impact of the REACH regulation on China's petroleum and chemical industries, the China Petroleum and Chemical Industry Association has closely tracked the implementation and implementation of the REACH regulation in recent years. It has proposed amendments to relevant parties in the EU, and has also stepped up publicity and mobilization of enterprises. Training, be prepared to respond positively. After the REACH regulation took effect in June last year, the petrochemical association shifted the focus of its response to the organization's services to companies registered with the European Chemicals Agency. In order to help companies better cope with the pre-registration of products that will begin on June 1 this year, we have since published a review of the work of the China Petroleum and Chemical Industry Association in response to the REACH regulations for readers.

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