The Impact Of Consumption Upgrades

- Feb 03, 2019-

Thanks to the rapid development in the past 40 years of reform and opening up, China's productive forces have been greatly liberated and improved. The contradiction between supply and demand in the market has shifted from insufficient supply to an overall oversupply.

China's petroleum and chemical industrial products have been unable to fully meet the needs of people's consumption and upgrading.The supply structure of the industry needs to be adjusted and upgraded to adapt to the fundamental changes in the contradiction between supply and demand, greatly improve the supply capacity and quality of the industry, and build a higher level and higher quality material foundation for people to enjoy a better life.

Supply-side structural reforms in the oil and chemical industries are accelerating.Consumption upgrading and supply-side structural reform are becoming the most important factors affecting the future of chemchina.They are driving each other and are creating deep changes in the way the industry develops.

1.The impact of consumption upgrades

Consumption plays an important and fundamental role in economic growth.China is one of the world's largest consumer market, in the first half of this year, domestic social total retail sales of consumer goods reached 18 trillion yuan, up 9.4% from a year earlier, the contribution rate of final consumption to economic growth reached 78.5%, increased by 14.2% than the same period last year, become the main constitution of economic growth, especially the consumption upgrade become the main force of lead and support consumption growth.

Petrochemical products are basic products and raw materials or products that are compatible with industries such as electronics, textile, light industry, agriculture, equipment, building materials and aerospace. As a result, consumption has been upgraded, creating greater and higher demand for petrochemical products and providing new impetus for high-quality development of the industry.

First, the 5G era is leading to a new upsurge in petrochemical consumption.

With the rapid development of information technology and the accelerating iteration of communication technology, people cannot live without big data and Internet services.At present, the society is making great strides towards the 5G era, and the commercialized application of 5G communication standards is ready to be developed.

5G has a wide range of practical applications in energy conservation and environmental protection, smart power grid, navigation and communication, smart agriculture, smart manufacturing, smart city and other fields, and people have great potential for 5G consumption.

According to a report by relevant transnational research institutions, the overall market investment scale of China's 5G industry will exceed us $1 trillion in the next five years.

The advent of the era of 5 g, will greatly improve the quality of industrial construction and operation of the Internet of things, will also speed up personal mobile terminal equipment upgrading, these are for petroleum and chemical industry to bring a new round of development opportunities, greatly promote the electronic chemicals, high-end film materials, high-end resin such as the rapid growth of the market consumption of related products.