A report published on 2 November 2026 by Washington-based Rhodium Group, commissioned by the US Chamber of Commerce, found that China's capacity for some chemicals nearly doubled over five years and now accounts for around half of global output for certain products.
The report said Chinese producers are moving into higher-value, more technology-intensive segments previously dominated by foreign firms. Between 2020 and 2025, styrene capacity rose 97 percent, ethylene 80 percent, polyethylene 75 percent, polypropylene 71 percent and polyvinyl chloride 15 percent, according to the report as cited by the Financial Times.
Exports accounted for less than 10 percent of total Chinese chemicals output, but export volumes grew rapidly, with annual average growth above 40 percent for four of the five petrochemicals except ethylene.
In India, China's share of PVC imports rose from 3 percent in 2020 to 45 percent in 2025, while the combined share of Japan, South Korea and Taiwan fell from 56 percent to 34 percent.
The EU opened three anti-dumping investigations into Chinese chemical imports in September 2026, while Beijing launched anti-dumping probes into a European dye and a pharmaceutical chemical. China's trade surplus is expected to exceed the 2025 record of USD 1.2 trillion.
