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San Francisco, CA (PRWEB) October 14, 2012
Revenue for the Basic Plastics and Synthetic Resin Manufacturing industry in China is estimated at $128.0 billion in 2012. Over the past five years, revenue has been growing at an annualized rate of 22.7%, says IBISWorld. Growth slowed in the latter years of the five-year period due to the lingering effects of the global economic crisis of 2009.
After years of output expansion and technological improvements, the industry is more capable of satisfying domestic demand. As such, imports as a share of domestic demand have fallen from dramatically. The share of exports in total industry revenue has also dropped significantly, but this decline is the result of weaker global demand stemming from the recession and the appreciation of the Chinese yuan.
The top four enterprises in this industry, the Sinopec Group, China National Petroleum Corporation, Yabang, and Zhenjiang Chimei, account for just over a quarter of industry revenue. Market share concentration within the industry dropped significantly as a large number of new companies entered and competition increased. Environmental protection regulations are more relaxed in China than in developed countries like the United States and Japan, which has attracted many foreign chemical giants like LG Chemical to China. These established companies brought with them advanced technologies and significant capital, increasing the level of competition.