CHINESE MINISTER REPORTS GAIN IN ETHYLENE OUTPUT

China's ethylene production is on the way up. Production amounted to 2.19 million metric tons in 1994, a 7.4% increase from 1993. China's Ministry of Chemical Industry plans to increase ethylene production to 5 million metric tons/year by the end of 2000, Vice-Minister Cheng Siwei told the AchemAsia conference in Beijing last week. Domestic and imported petroleum will be needed to support this growth. To reach the goal, China's ninth 5-year plan calls for expansion of smaller

May 22, 1995

China's ethylene production is on the way up.

Production amounted to 2.19 million metric tons in 1994, a 7.4% increase from 1993.

China's Ministry of Chemical Industry plans to increase ethylene production to 5 million metric tons/year by the end of 2000, Vice-Minister Cheng Siwei told the AchemAsia conference in Beijing last week. Domestic and imported petroleum will be needed to support this growth.

To reach the goal, China's ninth 5-year plan calls for expansion of smaller ethylene plants and construction of large ones.

China's strategy for chemical industry expansion includes reentering the General Agreement on Trade and Tariffs, promoting exports, improving China's investment environment, and promoting international cooperation.

To improve investment prospects, China is fighting inflation. The goal is to decrease inflation from 20.8% in 1994 to 15% in 1995.

Another focus is the environment. The government plans to establish an environmental protection agency soon.

China's total chemical sales were $60 billion in 1994. Because of the country's changing philosophies, its outlook is for growth of more than 9%/year for the next 5-10 years.