Break "Involution" Seek "New Opportunities" — The Transformation and Development Path of the Fujian Petrochemical Industry

The petrochemical industry is one of the four trillion-level pillar industries that Fujian Province is focusing on developing. In recent years, the petrochemical sector has maintained a rapid development momentum, with groundbreaking progress, transformative changes, and historic achievements continually emerging. It has now formed a complete industrial chain system covering upstream refining to downstream fine chemicals.

General Secretary Xi Jinping pointed out the need to build a number of high-end think tanks that are urgently needed by the country, have distinctive features, innovate systems, and lead development. These think tanks should focus on conducting forward-looking, targeted, and preparatory policy research around major national strategic needs. The Fujian Petroleum and Chemical Industry Association has thoroughly implemented this important directive, actively playing a role as a bridge and think tank. Through various forms such as conducting field research and organizing expert seminars, the association assists the government in formulating and implementing industry development plans, continuously promoting the Fujian petrochemical industry towards higher quality and higher levels.

In the first half of the year, amid a volatile international environment, China's economic performance continued a steady and positive trend, with the Gross Domestic Product (GDP) growing by 5.3% year-on-year. Against this backdrop, Fujian Province's petroleum and chemical industry maintained steady development, with the value added of enterprises above designated size increasing by 10.7% year-on-year, 2 percentage points higher than the provincial average for large-scale industries, and growing by 11.5% in June. The cumulative growth of industrial sales output value was 2.9%, with a 2.9% increase in June.

The data shows that the structure of Fujian's petroleum and chemical industry is continuously being optimized, with the foundation for endogenous momentum steadily reinforced, the main line of technological innovation increasingly prominent, new quality productive forces growing rapidly, and significant achievements being made in high-quality development. Meanwhile, the industry still faces numerous constraints, such as pervasive homogenized competition and intensified "involution" competition in some areas; insufficient innovation driving force; challenges in the promotion and application of high-quality manufacturing and products within the province; some enterprises, especially those in remote areas and small and micro enterprises, have a shallow understanding of and inadequate application of policies; some industrial park bases have incomplete supporting facilities, lack prominent leading industries, and have incomplete industrial chains; the development of technical personnel and specialized workforce is lagging, enterprise R&D investment is insufficient, and training systems are inadequate; and the promotional and application cycles for new technologies are relatively long. These issues, to varying degrees, also affect the overall development process of the industry.

The industrial structure is more optimized.

Manufacturing is the lifeblood of the national economy, the foundation of the nation, and the cornerstone of a strong country. Recently, Fujian Province has made a series of significant advancements in the petrochemical industry, demonstrating a positive trend of continuous optimization of the industrial structure and steady enhancement of development capacity.

On September 12, all 10 cracking furnaces at the Fujian Zhongsha Gulei Ethylene Project construction site were topped out, marking a key step forward in the construction of the ethylene unit of the project. On September 4, Fujian Zhong'a Refining and Chemical Co., Ltd. was officially established, and this joint venture will focus on advancing the second phase of the Fujian Gulei integrated refining and chemical project. On July 27, Zhongjing Petrochemical's integrated alkane production base, the largest in the world, was successfully completed and put into operation.

Enterprises are the "ballast stones" of economic development, and projects are the "strong engines" driving high-quality development. The Fujian Province Petroleum and Chemical Industry Association (hereinafter referred to as "Fujian Petrochemical Association") actively fulfills its duties, offers advice and suggestions, and assists in the sustainable and healthy development of the petrochemical industry.

On December 30, 2024, the Fujian Petrochemical Industry Chain Expert Seminar was held in Gulei, Zhangzhou. At the meeting, Lin Li, President of the Fujian Petrochemical Association, proposed that during the "15th Five-Year Plan" period, the petrochemical industry should adhere to a high level of openness to the outside world. The aim is to pursue a path of "having what others do not, being superior where others have, and being unique where others are superior," in order to shape the industry's core competitiveness.

To enhance the scientific and targeted nature of suggestions and proposals, the Fujian Petrochemical Association has organized a series of solid research activities: On one hand, they conducted extensive field visits to 17 national and provincial chemical parks, including Quangang Petrochemical Industrial Park, Quanhui Petrochemical Industrial Park, Zhangzhou Gulei Port Economic Development Zone, and Fuzhou Jiangyin Port Economic Zone. On the other hand, by “going out” and “bringing in,” they engaged in in-depth exchanges with industry associations and well-known enterprises in other provinces. In collaboration with relevant departments, they visited 119 enterprises, including Fujian Refining & Petrochemical Company Limited, Fujian United Petrochemical Company Limited, Sinochem Quanzhou Petrochemical Company Limited, and Fujian Energy and Chemical Group. Through field research, the Fujian Petrochemical Association has collected a wealth of first-hand materials, laying a solid foundation for future participation in government decision-making and serving industrial development.

On September 9th, the Fujian Petrochemical Association won the bid to write the "Fujian Province Chemical New Materials Industry Development Special Research Report" commissioned by the Provincial Department of Industry and Information Technology. The Petrochemical Division of the Provincial Department of Industry and Information Technology also proposed establishing a regular communication mechanism with the Fujian Petrochemical Association, focusing on close cooperation in key areas such as industry information sharing, expert team building, industrial chain integration, and the transformation of scientific research achievements. Additionally, they will provide corresponding support to the Fujian Petrochemical Association in activities such as business training and project discussions.

Adhere to innovation-driven development.

Technological innovation is the core element for developing new productive forces. With its wide penetration, significant diffusion, and strong driving force, technological innovation is empowering economic and social development with unprecedented breadth and depth.

Colleges and universities, as the source of technological innovation and the main base for talent cultivation, are an important force in promoting the integration of industry, academia, and research. To this end, the Fujian Petrochemical Association actively visits higher education institutions and research bases such as Xiamen University, Fuzhou University, and Fujian Normal University. The aim is to strengthen communication, build collaborative bridges for enterprises, and explore the deepening of an industry-led model of industry-university-research cooperation. By focusing on the actual innovation needs in enterprise development, the Fujian Petrochemical Association will facilitate the transformation of scientific research achievements in the fields of high-end new materials, fluorine-containing fine chemicals, electronic chemicals, hydrogen energy, and green chemistry from universities into practical applications. This will accelerate technological innovation and industrial transformation and upgrading, providing strong support to comprehensively enhance the overall competitiveness of Fujian's petrochemical industry.

The fluorochemical industry is a characteristic and advantageous industry in Fujian Province. To deepen the cooperation between industry, academia, and research, break through key core technologies, and pursue high-end, green, and differentiated development paths, the Fujian Petrochemical Association suggested during visits that relevant enterprises need to further strengthen the leading role of technology. Some enterprises also hope to use the association's channels to promptly reflect their actual demands to the relevant government departments and strive for a more favorable policy environment to promote the implementation of the development strategy for strengthening, extending, and supplementing the fluorochemical industry chain in Fujian Province.

Specialized and innovative small and medium-sized enterprises (SMEs) have played an important role in enhancing the stability of industrial and supply chains and promoting economic and social development. The Fujian Petrochemical Association continues to guide specialized and innovative SMEs within the industry in various regions to increase their investment in innovation, delve deeply into niche sectors, and focus on the development of new products. At the same time, it actively provides suggestions to government departments to promote the improvement of a tiered cultivation system for quality enterprises, strengthen policy support, and provide precise services, making them an important force in optimizing the economic structure and nurturing new quality productivity.

Currently, Fujian Province has 2,467 specialized and innovative small and medium-sized enterprises (excluding Xiamen). In addition, the Fujian Petrochemical Association has established four specialized committees in Fujian Province focused on chemical new materials industry research, digital intelligence, supply chain, and green environmental protection. The aim is to build a multi-dimensional service system to better serve the industry, government, and member units, injecting new vitality into industrial development.

On September 2nd, the project review meeting for the "Strategic Research on the Innovative Development of Fujian Province's Chemical New Materials Industry Chain" was successfully held. The review panel was chaired by Academician Fu Xianzhi, with members including Academician Xie Suyuan, Academician Zhang Jiujuan, and six experts from institutions such as Xiamen University, Fujian Normal University, Fujian Petrochemical Association, and Fujian Institute of Product Quality Inspection. The meeting provided important decision-making references for the high-quality development of Fujian Province's chemical new materials industry and strongly promoted the innovative development of the industry chain.

Embrace the Intelligent Era Actively

Currently, artificial intelligence technology is accelerating its iterative evolution, moving from experimental exploration to the value creation stage, profoundly changing the development landscape of various fields in the economy and society.

On February 18 this year, the Fujian Provincial Government issued the "Overall Plan for Accelerating the Digital Empowerment of High-Quality Economic and Social Development in Fujian Province," which explicitly proposes to comprehensively enhance the foundational capabilities of digital empowerment, advance digital empowerment across various industries, accelerate technological innovation leadership, strengthen digital infrastructure, and improve security capabilities. Under this policy guidance, enterprises such as Fujian Energy and Petrochemical Group, Hengshen Group, Sankeshu Group, Yongrong Technology, Zhongjing Petrochemical, and Fujian Baihong have actively implemented digital transformation actions in the manufacturing sector. Today, digital technology has widely penetrated the entire process of the petrochemical industry, deeply integrating production and operations, connecting diverse business scenarios, aiming to build a new type of intelligent and digital operational capability for enterprises, and promoting unified management control, data-driven operational management, intelligent production operations, smart application scenarios, and ecological industrial collaboration.

Shi Zhongkai, Vice President and Executive Director of Best Pacific International Holdings Limited, stated that Best Pacific Petrochemical and Best Pacific Chemical will actively take the initiative to cooperate, adhere to innovation-driven and green development, continuously increase investment, and build green, safe, and intelligent petrochemical enterprises. Meanwhile, Best Pacific Group will continue to deepen technological innovation and industrial integration, further optimize the management system, and take concrete actions to contribute to the high-quality development of the private economy, showcasing more of the commitment of private enterprises in the process of high-quality development of the petrochemical industry in Quanzhou.

Local industry organizations, such as the Quanzhou Petrochemical Industry Association, Sanming Fluorochemical Association, Yanping Insulation Association, and Quangang Petrochemical Industry Service Association, are actively promoting the digital and intelligent transformation of enterprises and strengthening collaboration between industry, academia, and research. Some associations have also organized visits to other provinces for exchanges, learning about the latest developments in digitalization and intelligence in the petrochemical industry. They are systematically advancing the construction of intelligent safety and environmental management platforms for Fujian's petrochemical enterprises, significantly enhancing the management effectiveness of safety system monitoring in industrial parks, corporate safety linkage, and atmospheric environmental monitoring.

In order to accelerate the digital transformation of enterprises, the Fujian Petrochemical Association and Fujian Unicom jointly organized the 2025 Intelligent Era AI+ Industry Innovation Ecosystem Development Seminar with the theme "AI-Driven Digital Intelligence Empowerment," attracting over 180 guests from inside and outside the province. The conference played a positive role in promoting the deep integration of intelligent technology and industries, building an open and innovative ecosystem, empowering the development of the information intelligence field, and promoting the transformation and upgrading of the energy and chemical industries. Additionally, the 2025 Chemical Safety and Emergency Management Conference (Xiamen) and the Xiamen International Fine Chemical Industry Exhibition have also successfully begun preparations.

Nowadays in Fujian, digitalization, intelligence, and informatization are increasingly becoming the core engines driving the high-quality development of the energy and chemical industries.

Unified Market Restructuring Services

In 2023, China issued the "Guidelines for the Construction of a National Unified Market," which clearly states the support for specialized service institutions to participate in the flow of factors. Specialized industrial service institutions can leverage their own advantages, integrate multiple resources, and assist enterprises in enhancing their risk resistance capabilities.

The petrochemical sector is an important service target for equipment manufacturing. The advanced equipment manufacturing industry is characterized by being technology-intensive, capital-intensive, having high added value, large growth potential, and strong driving effects. Quanzhou, as the only local model and practical example of "Made in China 2025," has local chemical equipment manufacturing enterprises with certain competitiveness, but the overall market share remains low. In addition, small and medium-sized enterprises have a poor understanding of policies and lag in accessing information, making it difficult for them to fully enjoy policy dividends. There is insufficient coordination in key links of the industrial chain, the efficiency of innovation results transformation is not high, and the development of new chemical materials is still weak.

To address the aforementioned challenges, the Fujian Petrochemical Association held its second joint meeting of presidents on September 16. Based on prior on-site research, the meeting reviewed and approved the "Proposal for 'Driving Innovation, Breaking the Dilemma of Involution, and Promoting High-Quality Development'" and incorporated feedback from the Petrochemical Division of the Provincial Department of Industry and Information Technology. The meeting proposed four measures: focusing on innovation-driven development, clarifying action directions, issuing tiered and classified initiatives, and emphasizing "starting with myself, starting now." This aims to guide member units to fulfill their social responsibilities, integrate resources, strengthen compliant operations, regulate market order, and resolutely curb the blind pursuit of "involutionary" competition in terms of scale, price, and market share, promoting healthy and orderly development in the industry.

At the same time, the Fujian Petrochemical Association assists relevant departments in strengthening connections with the Fujian Energy Conservation Center, the Fujian Safety and Emergency Industry Association, the Fujian Petrochemical Design Institute, as well as third-party industry service institutions such as CCIC Fujian and Anzheng Metrology. These professional organizations can leverage their industry judgment capabilities, industry databases, enterprise maps, and years of experience in specialized fields to help enterprises accurately identify gaps in the industrial chain and supply-demand, thereby breaking down the barriers of information asymmetry between government and enterprises.

The construction of a unified large market has also given rise to new roles in the industrial service sector. Based on the actual development of regional industries, the Fujian Petrochemical Association has introduced professional financial institutions to focus on the financing challenges faced by technology enterprises. By using policy innovation as a guide, optimizing services as a means, and connecting industry and finance as a link, they promote coordinated collaboration among finance, fiscal, and other departments. They are committed to building a "policy + service + connection" triad financial service system to inject new momentum into industry development and strive to create an innovative hub where industry and finance are deeply integrated.

The year 2025 marks the conclusion of the 14th Five-Year Plan and the planning year for the 15th Five-Year Plan, representing a crucial development period for Fujian's petrochemical industry. Leveraging its solid development foundation, exceptional industrial resilience, and vast growth potential, and with strong emphasis and policy support from governments and leaders at various levels, Fujian petrochemical enterprises are advancing with momentum. They are adapting to local conditions to develop new quality productivity, with the aim of establishing Fujian's oil and chemical industry as a trillion-yuan pillar industry as soon as possible.