Production

Many small and medium-sized enterprises for the production of plastics have been forced to suspend production or to continue to work with very low output. (3) Production of intermediate products has exceeded demand Judging from data on total supply and demand in the petroleum and chemical industry, crude oil production, organic chemical materials and synthetic materials, including PE, PVC and PP, as well as specialty chemicals, is unable to meet domestic demand and imports are needed. Nevertheless, the production capacity traditional sectors, such as the manufacture of inorganic salts, chemical fertilizers, pesticides, caustic soda, soda ash, dyes, pigments and rubber products that are redundant. For In order to curb excessively rapid growth in exports and provide a greater trade surplus, China has lowered export rebate for intermediate products from July 1, 2007 This measure was aimed at forcing businesses to reduce exports of products with high power consumption, high pollution and high cost of resources, as well as products with low added value and low technology, and on the contrary, increase the export of products with high added value and high technology, change the orientation of investment and to avoid ill-considered investments, and education of excess capacity. 2 Trends in economic development of the petroleum and chemical industries in 2008 2008 is the year of change in the government of China. The economists make their forecasts about the development trends of world economy in 2008 Most of them believe that global growth will remain at 4.8% in 2008, however, it is possible that there will be some fluctuation and some slowdown in growth.