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[Industry Focus]：What impact will Trump's election have on China's chemical companies?

Read： 314 Time：2months ago Source：Chemical 707, refinement is very different, easy to the world.

As the dust settles on the U.S. election, the red party Trump is once again in the White House and the era of the "Trump deal" is officially restarted. The policy propositions clearly put forward by Trump in his campaign speech will undoubtedly have a profound impact on the global energy and chemical markets, especially Chinese chemical companies.

The Impact of 1. Tariff Policy on the Export of Chinese Chemical Enterprises

if Trump fulfills his campaign promise to cancel China's most-favored-nation status and impose high tariffs on Chinese goods, it will directly impact the exports of Chinese chemical companies. Recall that during Trump's first term in 2018-2019, the United States initiated three rounds of tariffs on Chinese exports to the United States, involving many chemical products. If a similar scenario is repeated, the export of Chinese chemical companies will be seriously challenged.

1. Direct export impact: Chemical products such as lubricants, polyethylene, and polypropylene are involved. The export volume of these products may drop significantly, especially exports to the US market.

2. Supply chain risks: Tariff barriers will increase the export costs of Chinese chemical companies and reduce the competitiveness of their products in the international market. At the same time, this may also lead to the risk of supply chain interruption, affecting the normal operation of enterprises.

The impact of 2. countermeasures on the import cost of Chinese chemical enterprises.

In the face of the US tariff policy, if China takes countermeasures, it will impose tariffs on US products, involving key chemical raw materials such as crude oil, LNG and methanol. This will lead to higher import costs for Chinese chemical companies, further compressing their profit margins.

1. Increase in import costs: The import costs of key chemical raw materials such as crude oil, propane, and LPG will rise, directly affecting the production costs of Chinese chemical companies.

2. Supply chain adjustment: In response to the pressure of rising import costs, Chinese chemical companies may need to adjust their supply chain layout and find new import sources or substitutes.

The Impact of 3. Trump's Energy Policy on China's Chemical Enterprises

trump's support for the fossil fuel industry and the elimination or revision of environmental regulations will promote oil and gas exploration and production in the United States. This will lead to an increase in global oil and gas supply and keep oil and gas prices low, with the following impacts on Chinese chemical companies:

1. Increased competition in the petrochemical market: Low oil and gas prices will weaken the cost advantage of alternative new energy sources, making the petrochemical market more competitive. Chinese chemical enterprises need to improve production efficiency and reduce costs to cope with market competition.

2. Challenges and opportunities coexist in the new energy industry: if Trump withdraws from the Paris Agreement, it will weaken the hard binding force of global greenhouse gas emissions and adversely affect the development of the new energy industry. But it also provides an opportunity for China's new energy industry to transform and upgrade, and promote technological innovation and industrial upgrading.

4. Countermeasures of Chinese Chemical Enterprises

faced with the challenges and opportunities that Trump's policies may bring, Chinese chemical companies need to adopt the following strategies:

1. Strengthen market monitoring and analysis: pay close attention to the dynamics and policy changes in the international market, and adjust export strategies and market layout in a timely manner.

2. Increase investment in technological innovation and research and development: increase the added value and competitiveness of products, and reduce production costs to cope with market competition and tariff barriers.

Diversified supply chain layout: finding new sources of imports and alternatives to reduce the risk of dependence on the single market.

4. Strengthen international cooperation and exchanges: actively participate in international cooperation mechanisms such as global energy governance and climate change negotiations, and promote the solution of global energy transformation and climate change issues.

Trump's victory will have a profound impact on China's chemical companies. In the face of these impacts and challenges, Chinese chemical companies need to maintain calm and rational analysis capabilities; at the same time, take active and effective countermeasures to resolve risks and seize opportunities.

Source: Chemical 707, Refined Big Different,

ease of the world

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