In 2011, China’s oil and chemical industry’s gross output value grew 31.5% to CNY 11.3 trillion ($1.7 trillion). The industry’s gross output value of imports and exports rose 32.3% to $607 billion. The China Petroleum and Chemical Industry Federation forecasts industry output to grow 14.5% in 2012, with profits rising 5% to CNY 860 billion. Specialty chemical sales are expected to grow faster than basic chemicals, starting this year, with multinational producers meeting this demand and increasing their investments in China. Chinese chemical firms are increasingly subject to new regulations, including the Clean Production Promotion Law, which came into effect in July, and greater government scrutiny of safety and environmental practices.

Source: KPMG