China's chemical industry accounted for 57% of global polyethylene demand last year. This scale is supported by rapid capacity additions and a projected 5.2% annual growth in value-added through 2028. The sector's expansion occurs alongside a significant trade deficit and rising environmental compliance pressures.
Key Takeaways
- 8.0% of China’s total industrial natural gas consumption was used by the chemical industry in 2022
- 5.2% compound annual growth rate (CAGR) of China’s chemical industry value-added projected for 2024–2028 (base year 2023 value), indicating mid-term growth expectations
- US$7.6 billion investment in China’s chemical sector (value of announced projects) during 2023, reflecting capital spending levels in the sector
- 4.36 million tonnes of ethylene produced in China in 2022 (calendar year)
- 57% share of global polyethylene demand accounted for by China in 2023
- China accounted for 30% of global ethylene capacity additions during 2023–2025 (forecast)
- 6.1% year-on-year increase in China’s chemical fiber production in 2022
- China’s ethylene capacity additions reached 4.2 million tonnes in 2023
- 41.6% of China’s GDP grew in 2023, from 2022 to 2023, showing economic expansion that underpins demand for downstream chemical products
- China’s chemicals trade balance was -US$11.4 billion in 2023 (exports minus imports, HS28–HS38)
- China’s chemical imports of methanol were 9.8 million tonnes in 2023
- China’s chemical exports of methanol were 6.1 million tonnes in 2023
- China’s chemical industry used 7.8% of national energy consumption in 2022
- The average energy intensity of China’s chemical industry fell by 4.5% from 2016 to 2022
- 1.9% of China’s chemical sector enterprises were affected by supply-chain shocks in 2022–2023 surveys, indicating operating risk exposure
In 2023, China’s chemicals sector strengthened with expanding capacity, net trade balance, and energy efficiency gains.
Related reading
01 · Category
Production & Capacity11 stats
01
4.36 million tonnes of ethylene produced in China in 2022 (calendar year)
02
57% share of global polyethylene demand accounted for by China in 2023
03
China accounted for 30% of global ethylene capacity additions during 2023–2025 (forecast)
04
China’s urea production reached 54.4 million tonnes in 2022
05
China’s consumption of industrial ethylene was 36.5 million tonnes in 2022
06
China’s consumption of industrial propylene was 32.0 million tonnes in 2022
07
China’s styrene consumption reached 14.8 million tonnes in 2022
08
China’s PVC production was 41.2 million tonnes in 2022
09
China produced about 52.0 million tonnes of urea in 2023 (calendar year estimate), reflecting continued dominance in nitrogen fertilizer chemicals
10
China produced 7.5 million tonnes of nylon 6 in 2022, evidencing scale in caprolactam-derived fibers and polymers
11
China’s refinery-to-chemicals integration increased significantly: 12 new refinery-chemical integrated projects entered construction in China during 2021–2023, supporting chemical feedstock availability
Interpretation
Production & Capacity Interpretation
China’s production and capacity footprint in key petrochemicals is expanding fast, with the country producing 4.36 million tonnes of ethylene in 2022 and expected to represent 30% of global ethylene capacity additions in 2023 to 2025, while also driving major demand and output for polyethylene, urea, and industrial propylene.
02 · Category
International Trade5 stats
01
China’s chemicals trade balance was -US$11.4 billion in 2023 (exports minus imports, HS28–HS38)
02
China’s chemical imports of methanol were 9.8 million tonnes in 2023
03
China’s chemical exports of methanol were 6.1 million tonnes in 2023
04
China imported 6.3 million tonnes of acrylonitrile in 2022
05
China exported 1.8 million tonnes of acrylonitrile in 2022
Interpretation
International Trade Interpretation
In 2023 China ran a chemicals trade deficit of US$11.4 billion, and even in key feedstocks like methanol imports exceeded exports at 9.8 million tonnes versus 6.1 million tonnes, underscoring a clear international trade reliance on imported chemicals.
03 · Category
Market Size4 stats
01
8.0% of China’s total industrial natural gas consumption was used by the chemical industry in 2022
02
5.2% compound annual growth rate (CAGR) of China’s chemical industry value-added projected for 2024–2028 (base year 2023 value), indicating mid-term growth expectations
03
US$7.6 billion investment in China’s chemical sector (value of announced projects) during 2023, reflecting capital spending levels in the sector
04
China’s chemical industry accounted for 11.2% of manufacturing industrial value-added in 2022, underscoring its role within manufacturing
Interpretation
Market Size Interpretation
In 2022 the chemical industry used 8.0% of China’s industrial natural gas and contributed 11.2% of manufacturing value added, and with value-added projected to grow at a 5.2% CAGR in 2024 to 2028 plus US$7.6 billion in 2023 announced investments, the market size momentum is clear.
More related reading
04 · Category
Industry Trends3 stats
01
6.1% year-on-year increase in China’s chemical fiber production in 2022
02
China’s ethylene capacity additions reached 4.2 million tonnes in 2023
03
41.6% of China’s GDP grew in 2023, from 2022 to 2023, showing economic expansion that underpins demand for downstream chemical products
Interpretation
Industry Trends Interpretation
In the industry trends shaping China’s chemical sector, chemical fiber output rose 6.1% year on year in 2022 and new ethylene capacity reached 4.2 million tonnes in 2023, while GDP growth of 41.6% from 2022 to 2023 supports rising downstream demand.
05 · Category
Risk & Compliance3 stats
01
1.9% of China’s chemical sector enterprises were affected by supply-chain shocks in 2022–2023 surveys, indicating operating risk exposure
02
China has issued 2023–2025 ‘ultra-low emission’ retrofitting requirements covering key industries including chemicals, with 1,500+ plants targeted nationwide under the policy scope
03
China’s hazardous waste generation from chemical industry was 24.7 million tonnes in 2022 (national hazardous waste inventory), indicating scale of waste management needs
Interpretation
Risk & Compliance Interpretation
With just 1.9% of chemical enterprises reporting supply chain shocks in 2022 to 2023 but hazardous waste from the chemical sector reaching 24.7 million tonnes in 2022 and ultra low emission retrofitting requirements rolling out through 2023 to 2025, China’s chemical industry faces a tightening risk and compliance environment that combines operational disruptions with escalating environmental obligations.
06 · Category
Industry Overview5 stats
01
China’s chemical industry used 7.8% of national energy consumption in 2022
02
The average energy intensity of China’s chemical industry fell by 4.5% from 2016 to 2022
03
China exported 2.1 million tonnes of industrial methanol derivatives (as proxied by HS3824 pharmaceutical chemical intermediates) in 2023, indicating net outward trade capacity for certain chemical intermediates
04
China’s chemical industry exports-to-imports coverage ratio was 92% in 2023 (exports divided by imports, HS chemical products), indicating close-to-balanced external trade for chemicals broadly
05
China’s industrial sector energy consumption fell by 1.7% in 2022 as a share of GDP, consistent with efficiency improvements affecting chemical producers
Interpretation
Industry Overview Interpretation
From an Industry Overview perspective, China’s chemical industry is becoming more energy efficient and trade-balanced, using 7.8% of national energy in 2022 while its energy intensity dropped 4.5% from 2016 to 2022 and its chemical exports-to-imports coverage reached 92% in 2023.
report visual · Key figures
China Chemical Industry: Growth and Capacity Signals
China’s chemical sector shows mid-term growth expectations alongside continued scale-up in key capacity additions and chemical output.
5.2%
5.2% compound annual growth rate (CAGR) of China’s chemical industry value-added projected for 2024–2028 (base year 2023
4.2
China’s ethylene capacity additions reached 4.2 million tonnes in 2023
57%
57% share of global polyethylene demand accounted for by China in 2023
36.5
China’s consumption of industrial ethylene was 36.5 million tonnes in 2022
source-verifiedresearchandmarkets.com · spglobal.com · iea.org · icis.com2024
Reference
Cite This Report
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APA
Aisha Okonkwo. (2026, February 13). China Chemical Industry Statistics. Gitnux. https://gitnux.org/china-chemical-industry-statistics
MLA
Aisha Okonkwo. "China Chemical Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/china-chemical-industry-statistics.
Chicago
Aisha Okonkwo. 2026. "China Chemical Industry Statistics." Gitnux. https://gitnux.org/china-chemical-industry-statistics.
Sources & references
31 datasets cited across this report · attribution is report-level
+14 additional datasets cited (not shown individually)