Vikki Allen/Brussels, Belgium

The European chemical industry could be threatened by the success of the ever growing Chinese chemical industry if it fails to keep pace and remain competitive in the future says, René van Sloten, director of international trade and competitiveness at the European Chemical Industry Council (Cefic), Belgium. Van Sloten stresses that the investment boom in China could be viewed as either a threat or an opportunity, but that remaining competitive is key.

As the Chinese chemical industry continues to grow, companies in Europe are becoming increasingly concerned with sustainable development as opposed to solely sustained growth within China. Udo Jung, vice president and director of the Boston Consulting Group, Frankfurt, Germany, believes that it is ever more important that companies fully understand the business within which they operate.

The decision by European companies to start trading in China should not be taken lightly. They should understand exactly what they have to offer. 'People should consider very seriously their long-term strategies and decide whether they need to move to China or change their business models to keep work within Europe,' says Jung. He also highlighted the possibilities within central and eastern Europe.

With demand for chemicals in China expected to double between 2002 and 2015, trading in China remains a very attractive opportunity. An opportunity greatly facilitated since China joined the World Trade Organisation at the end of 2001. Even with such positive projections however, many companies question whether the country's infrastructure can keep pace with expected growth, particularly as demand for power outstrips supply in some areas (See Chemistry World, January 2005, p12).

Increasing industrial legislation and tax reforms expected this year also make the future uncertain for companies trading, or wanting to begin trading, in China. The future of the European chemical industry was discussed by delegates attending the meeting Strategies in China: the chemical industry and its customers supported by Cefic.