YANTAI, China (Reuters) – A crackdown on the chemical sector by the Chinese government is having a bigger impact on businesses than the U.S.-China trade war, an industry association official said Wednesday, with supply chains disrupted by tough inspections and plant closures.
China has launched a series of inspection campaigns aimed at tackling illegal or irregular chemical production after a lethal explosion at an industrial park in Jiangsu province killed 78 people and injured dozens more in March.
Blast - City - Yancheng - Attention - Role
The blast in the coastal city of Yancheng also drew attention to the role played by thousands of poorly regulated Chinese chemical manufacturers in the global supply chain, with the stricken Tianjiayi factory said to be providing components to several multinational conglomerates.
But the inspections have already disrupted the flow of key chemical ingredients, and forced international suppliers to look elsewhere or even consider moving their businesses abroad, said Fu Xiangsheng, the vice chairman of the China Petroleum and Chemical Industry Association.
Blanket - Cuts - Parks
“Blanket cuts at petrochemical industrial parks have much bigger...
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