How to face the global competition in China's pain

2022-09-23
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How to face the global competition in China's coating industry

there are more than 8000 coating production enterprises in China. According to the statistics of the National Bureau of statistics on coating enterprises with an annual sales revenue of more than 5 million yuan, the total output of coatings in China in 2000 was 1.8394 million tons, ranking among the top four in the world. Paint production in China is mainly concentrated in the economically developed Yangtze River Delta and Pearl River Delta. Among them, the paint production in East China is the largest, accounting for 41.6% of the total output of the country; Central and southern China accounted for 30.8%; North China accounted for 16.5%; The proportion of northeast, southwest and northwest regions is only 11.1%. The top three annual output of coatings are Guangdong (402600 tons), Shanghai (255600 tons) and Jiangsu (225100 tons). It can be seen that the development of China's coating industry is basically synchronized with the regional economic development

in 2000, the import and export volume of coatings in China was 229000 tons (497 million US dollars) and 84000 tons (140 million US dollars) respectively, both of which were mainly solvent based products. Solvent based coatings accounted for 61.6% and 78.5% of the total import and export of coatings respectively, while water-based coatings accounted for 38.4% and 21.5% of the total import and export of coatings respectively. The water-based proportion of imported coatings is higher than that of exported coatings. The average price of imported coatings is 2172 dollars/ton, and the average price of exported coatings is 1672 dollars/ton, which is 30% higher than the export price. This is because imported coatings are mainly high-end products such as automotive coatings, automotive touch up paint, architectural coatings, special coatings and furniture coatings, while exports are mainly medium and low-end products. The former mainly enters the Chinese market with quality advantages, while the latter mainly goes abroad with low prices

the main type of paint exported from China is solvent polyester paint, accounting for 40% of the total export volume of paint. The main export regions are Hong Kong, North Korea, Russia, Mongolia, Myanmar, Kazakhstan, Kyrgyzstan, etc. The main variety of imported coatings is also solvent polyester paint, accounting for 26.5% of the total import volume of coatings. The main import regions are Hong Kong, Taiwan, China, Japan, the United States, South Korea, Singapore, the United Kingdom, etc. The proportion of imported coatings in domestic coatings has also increased from 35% increased to 12.4% in 2000. The increase of paint trade volume indicates that the internationalization of paint market is further strengthened and the competition is more intense. At the same time, it also indicates that the domestic paint market is broader

the development trend of the coating industry is that the coating production is developing towards collectivization, scale and specialization. Some world-class large companies develop their production in the direction of collectivization, scale and specialization by means of mutual acquisition, joint venture and cooperation, and technology transfer, so as to strengthen their competitiveness in a certain product market field, so as to achieve the purpose of globalization and rationalization. Second, attach importance to environmental protection and develop "green coatings". Traditional low solid content soluble 1. Performance dosage form coatings contain about 50% organic solvents, which pollute the environment and endanger human health. With the economic development, the voice of people to protect their living space is also getting higher and higher, and environmental protection regulations are becoming more and more strict, forcing major coating companies in the world to devote themselves to the development and application of energy-saving and low pollution water-based coatings, powder coatings in scientific research institutions, high solid coatings and radiation curing coatings. The hydration of architectural coatings has become an inevitable trend. Industrial coatings are also developing towards water-based coatings, powder coatings, high solid coatings and radiation curing coatings

the first impact of China's entry into WTO is the direct impact of tariff reduction. The current import tax rate of coating products is 10.7%, which may fall to 7.4% within a few years after China's entry into WTO, with a decrease of 3.3%. The decrease of tax rate will stimulate the growth of China's paint import volume, but the characteristics of paint inconvenient for long-distance transportation will limit the growth of import volume. Combined with the above factors, after China's accession to the WTO, foreign original imported coatings will have a certain impact on the high-end coating market with high added value, but have little impact on the medium and low-end coating market. At present, a considerable number of raw materials used in China's coating industry rely on imports, such as rutile titanium dioxide, coating additives, aliphatic isocyanates, trimethylolpropane, metal pigments, high-grade organic pigments and inorganic pigments. After China's accession to the WTO, the tax rate of 70% of chemical products will be reduced from the current 10% to 5.5% - 6.5% in 2005. In 2008, the tax rate of chemical raw materials will be further reduced to 2%, and even individual products will reach zero tariff. This is extremely beneficial for China's coating enterprises to smoothly obtain imported raw materials with low price, good quality, variety series matching and after-sales service, produce high-quality coating products and enhance their competitiveness. Therefore, if only considering the impact of tax rates, China's entry into WTO will have more advantages than disadvantages for China's coating industry. The second is the deep-seated impact of multilateral agreements reached in accordance with the basic principles of WTO. On the one hand, there are severe challenges. The coating industry is a traditional manufacturing and processing industry, and it is impossible to enjoy the protection policies for automotive, electronics, agriculture, finance, insurance, telecommunications and other industries enjoyed by China's accession to the WTO as a developing country, but to bear greater pressure. After joining the WTO, imported products and foreign-funded enterprises compete in the same legal environment as ours, which is bound to lead to foreign enterprises with strong technical capital, especially international multinational chemical groups, to further increase their efforts to invest and build factories in China. Foreign funded enterprises enter China to engage in coating production and trade, establish distribution channels, provide more direct services, and combine their brand publicity advantages, efficient management and strong capital, so as to greatly reduce the current excessive distribution costs of imported products, improve their competitiveness, and occupy the regional market of domestic large enterprises. On the other hand, there are possible opportunities. First, it is conducive to accelerating the reform and opening-up process of China's coating enterprises. After joining the WTO, the standardized international competition mechanism and general rules will be introduced into China, which will play a role in revising and standardizing the rules of China's market economy, and help to break through the current domestic resistance with external forces, so as to speed up the process of reform and opening up of China's coating enterprises. Second, it is conducive to the introduction of technology and foreign capital, improve the level and expand the operation of China's coating enterprises. Due to the relaxation of the access restrictions for foreign capital to enter the Chinese market, it will directly stimulate foreign capital to expand investment in China. Once a large amount of foreign direct investment and advanced technology can be used, it will lay a solid foundation for the upgrading of China's coating products and the expansion of reproduction. Third, it is conducive to the structural adjustment of China's coating enterprises. With the accelerated entry of international capital, SABIC is committed to contributing to the success of customers through continuous improvement of product quality and performance in the domestic factor market, which is in line with the international market. The structural adjustment and upgrading of China's coating enterprises will be incorporated into the international division of labor system to realize the optimization and combination. Fourth, it is conducive to the export of paint products and technologies in China. The multilateral permanent most favored nation treatment among WTO member countries has created conditions for China's coating enterprises to expand the international market, especially in the past 20 years, China's coating industry has been ahead of other developing countries in terms of product technology and process equipment, and has the advantage of being cheaper than developed countries in terms of price. Therefore, with the export of products, technology and equipment, the opportunities for China's coating industry to establish factories abroad will also be greatly increased

in the new century, China's coating industry is facing a new development environment, which has both challenges and opportunities. We must speed up the adjustment of product structure and enterprise structure to enhance competitiveness

speed up the adjustment of industrial structure according to the development status of China's coating industry and the requirements of related industrial development, and drawing lessons from the technological progress and development trend of the world's coating industry, China's coating industry must speed up the adjustment of industrial structure. ① The coating industry will gradually eliminate backward processes, backward equipment and low-quality products, such as low-grade architectural coatings - polyvinyl alcohol water glass interior wall coating (106), polyvinyl formal coating (107), starch coating, cellulose modified starch coating and other products. ② Vigorously develop high-grade synthetic resin coatings, so that the proportion of high-grade synthetic resin coatings with high efficiency, complete functions and convenient operation will be increased from 80% at present to 90% in 2005. ③ Vigorously develop energy-saving and low pollution waterborne coatings, high solid coatings, powder coatings, solvent-free coatings and radiation curing coatings. In architectural coatings, the proportion of latex coatings should be increased to 60% - 70% by 2005. In the coatings of industrial products, the application of water-based coatings, high solid coatings and powder coatings will be expanded. By 2005, the proportion of water-based coatings will reach 15%, and the proportion of powder coatings will reach 10%. Achieving this goal will increase the proportion of energy-saving and low pollution coatings in the total output of coatings from nearly 30% at present to 50% in 2005. 5. Focus on the development of ultra weather resistant (more than 10 years) architectural coatings, such as organosilicon, organofluorine and their modified acrylate latex coatings; Accelerate the research on water-based and seriation of automotive coatings, focus on car paint, focus on high decoration and low pollution car paint, and develop water-based, high solid content, solvent-free, metal flash paint and high freshness; Develop heavy anti-corrosion coatings for bridges and ships with an anti-corrosion aging of more than 15 years; Develop fire-proof coating, sound insulation coating, high temperature resistant coating, heat insulation coating, etc. with special functions; Develop various aliphatic and aromatic polyurethane coatings and epoxy resin coatings with low energy consumption and high performance

accelerate the adjustment of enterprise structure. The enterprise structure with many factories and small scale in China's coating industry has become increasingly unable to adapt to the development situation of economic globalization. Especially after China's entry into WTO, the core issue for Chinese coating enterprises to survive and develop is to improve product quality and reduce product costs. This core problem involves many problems, such as management system, operation mechanism, source of funds, source of technology, lack of talents, layoffs, debt burden, social burden and so on. Only by careful study and serious treatment, according to the law of market economy, accelerating the transformation of ideas and strengthening reform, can we solve them one by one. ① We should eliminate the fittest and resolutely shut down enterprises with poor production and operation and poor efficiency. ② Reform the employment mechanism, reduce staff and increase efficiency, and improve labor productivity. ③ Implement the combination of strong and strong, and establish paint enterprise groups. Facing the high concentration and super large scale of the world coating industry, China's coating industry must implement the strong alliance and establish several pivotal and large-scale coating enterprise groups. The establishment of these enterprise groups can learn from each other, divide work and cooperate, adjust the variety structure, concentrate on developing new products, standardize the market, stabilize prices, avoid repeated construction, and enhance market competitiveness and risk resistance. Expand opening-up, introduce foreign capital, and accelerate product upgrading. ⑤ Implement the joint-stock reform, and enhance the sense of crisis, sense of responsibility and sense of mission of enterprise employees

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