Article at a glance:

Global chemicals: China remakes an industry

Chemical companies are rapidly losing the luxury of pondering when and how to approach China. Many of their key customers have already taken the leap and are moving production there. Meanwhile, Chinese chemical companies, backed by low factor costs, are competing effectively for these customers and are beginning to encroach on global markets. These two trends will have a profound effect on the global value chain for chemicals.

The take-away

For chemical companies, a wait-and-see approach to China is no longer appropriate. Companies cannot just covet the rich market opportunities the country offers; they must now also consider the threat posed by its emergence as a major producer.