CHINA: IMPLICATIONS OF CHEMICAL INDUSTRY DEVELOPMENT

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• Document Creation Date: December 21, 2016
• Document Release Date: February 14, 2008
• Sequence Number: 4
• Publication Date: September 1, 1983
• Content Type: REPORT

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Directorate of Secret
Intelligence
China: Implications
of Chemical Industry
Development
Secret
EA 83-10149
September 1983
Copy 258
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Directorate of Secret
Intelligence
China: Implications
of Chemical Industry
Development
This paper was prepared by I Of the
Office of East Asian Analysis. Comments and queries
are welcome and may be directed to the Chief,
China Division, OEA,
Secret
EA 83-10149
September 1983
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Secret
Summary
Information available
as of 29 July 1983
was used in this report.
China: Implications
of Chemical Industry
Development
chemical industry
China has invested heavily in the chemical industry over the past two
decades in an effort to reduce dependence on imports, support industrial
development, and earn foreign exchange from increased exports. From
1971 to 1980, Beijing poured nearly 12 percent of domestic capital
investment and $5 billion in imported plants and equipment into the
China's reliance on imported chemicals continues to be substantial,
however, with total value of imports dropping in 1981-82 only because of
depressed world prices. Although China has expanded production capacity,
consumption still exceeds domestic supplies. As a result, we expect China
will continue to rely heavily on foreign suppliers for the foreseeable future,
particularly for agricultural chemicals, plastics, rubber, and organic
chemicals.
Plans to increase exports have been successful, but such traditional
products as resins, medications, and coal tar compounds still dominate
Chinese sales abroad. Beijing's expectations for entering international
markets as a volume seller of modern chemicals, such as petrochemical
products, also have been set back by rising domestic consumption. China
has begun to market chemical products more aggressively, but we do not
believe it will significantly increase its 1-percent share of world chemical
exports. Sales of low-priced Chinese chemicals will provoke such problems
as recent antidumping actions by the United States and Europe, but we be-
lieve these problems will not be common or predictable.
not affect the chemical industry until the late 1980s or early 1990s.
Energy availability and efficiency will continue to worry chemical industry
officials. During the 1980s, chemicals will be the largest industrial
consumer of energy resources, in spite of efficiency drives aimed at closing
wasteful chemical factories. Petrochemical production will be a high
priority, and, unless new oil resources are found, Beijing will have to divert
oil from exports-now about 400,000 barrels per day-to supply petro-
chemical plants. China plans to increase production of chemicals from coal
to complement the oil- and gas-based chemical sector, but these plans will
Secret
EA 83-10149
September 1983
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We expect US firms to benefit from the development of China's chemical
industry through both commodity trade and technology transfer. Agricul-
tural chemicals and plastics will continue to dominate US exports to China,
with the Chinese market giving a much-needed boost to the depressed US
phosphate industry in particular. Beijing also wants US technology and
equipment to build or upgrade a variety of chemical plants and to improve
the industry's energy efficiency
China's exports of chemicals are such a small share of world trade that,
even if exports increased substantially, it is unlikely that Chinese chemicals
would cost US firms any significant sales in third-country markets.
However, we do expect US firms will suffer reductions in exports to China
of urea fertilizer by mid-decade. Exports of some plastics also may level off
and possibly decline by the late 1980s if China's own capacity potential is
realized.
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Summary
The Chemical Industry's Role in the Economy
1
Plant Imports Enhance Expansion
Petroleum Feedstock Prospects
5
Imports Reflect Development Priorities 6
Exports: Less Concentrated Than Imports 7
Technology Transfer Prospects 8
A. Sectoral Development
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C. Chemical Imports and Exports
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Table 1
China: Chemical Industry Growth
Chemical Industry
Total Industry
Chemical Share
of Total
Output Value
(billion 1970 yuan)
Growth Rate
(percent)
Output Value
(billion 1970 yuan)
Growth Rate
(percent)
(percent)
1978
52.5
23.9
423.1
13.5
12.4
1979
56.2
7.0
459.1
8.5
12.3
1980
62.2
10.8
499.2
8.7
12.5
1981
65.1
4.7
519.9
4.1
12.5
1982
71.3
9.5
559.9
7.7
12.7
1977-82 average
annual increase
(percent)
11.0
8.5
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China: Implications
of Chemical Industry
Development t
For 20 years Chinese policy for expanding the chemi-
cal industry has focused primarily on two problems-
meeting the needs of China's huge agricultural sector
for fertilizer and agricultural chemicals and develop-
ing a domestic petrochemical industry that could
provide the array of products used in all industrialized
states. The past weakness of the chemical industry
had led to a costly dependence upon imports. The
discovery of new oil and gas resources in the early
1960s allowed Beijing to embark on a program of
constructing large complexes to produce badly needed
fertilizers and petrochemical products. At that time,
Chinese planners, overestimating the potential impact
of new capacity, also began to believe China might
develop new export capabilities
While expanded exports and reduced imports remain
the primary motives, the domestic demand created by
China's recent economic growth has given further
impetus to chemical expansion. Technological ad-
vances in industry have created requirements for new
or increased supplies of such chemical products as
intermediate materials, solvents, lubricants, and plas-
tic or rubber parts. Advances in chemical processing
technologies that permit more efficient production
also place continuing pressure on the chemical indus-
try to expand and modernize. This paper examines the
development of the industry in recent years and
assesses the problems Beijing faces in meeting domes-
tic needs and the prospects for a larger Chinese share
of the international chemicals market.
The chemical industry is China's third-largest indus-
trial sector after machine building and textiles.
Chemical production accounted for about one-eighth
Table 2
China: Capital Productivity, 1981
Gross Output Value per
1,000 Yuan of Fixed Assets
(yuan)
Total
957.1
Metallurgy
649.5
Electric power
372.5
Coal and coke
264.9
Petroleum
872.9
Chemical
1,214.8
Machine building
802.9
Building materials
564.8
Forestry
551.1
of gross industrial output value (GVIO) in 1981,
nearly double the 1957 share. Massive infusions of
foreign technology and equipment in the mid-1960s
and again in the 1970s contributed to rapid increases
in output value (see table 1).
Among the 10 major industrial sectors, the chemical
industry is second only to textiles as a direct source of
economic growth (measured in terms of incremental
GVIO). Chemical output yielded about 16 percent of
the increase in GVIO between 1977 and 1981. Chem-
icals also support growth indirectly, providing major
inputs to the important agricultural sector and raw
materials for other products
The chemical industry's capital productivity is high,
ranking third behind the textile and food industries
(see table 2). Imported technologies contribute greatly
to capital intensity in chemical production-imported 25X1
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Table 3
China: Chemical Industry Labor Force a
Total
Industry
(million)
Chemical
Industry
(million)
Share
(percent)
1978
29.9
2.8
9.4
1979
30.4
2.8
9.2
1980
32.5
3.0
9.2
1981
34.1
3.1
9.1
ammonia plants, for example, produce more than
4,000 tons per worker yearly, about 19 times the
output per worker at Chinese-designed plants. Higher
capital intensity has also permitted the chemical
industry to enlarge its share of production with a
declining share of the labor force (see table 3). Labor
productivity in state-owned chemical enterprises in-
creased at an average annual rate of 5.8 percent
between 1978 and 1981, nearly three times the na-
Table 4
China: Investment in the Chemical Industry a
Year
Total Investment Investment in
Chemical's Share
in Industry
(billion yuan)
the Chemical
Industry
(billion yuan)
of the Total
(percent)
1953-57
25.0
1.4
5.6
1958-62
72.8
5.5
7.6
1963-65
21.0
2.4
11.4
1966-70
54.2
6.2
11.4
1971-75
97.8
9.6
9.8
1977
21.7
2.9
13.4
1978
27.3
3.1
11.4
1979
25.7
2.9
11.3
1980
27.4
3.0
10.9
1981
21.5
1.9
8.8
1981-85
(Plan)
120.2
11.4
9.5
a Chinese statistics are available only for state-level capital construc-
tion investment. Additional expenditures are made by localities and
factories but are not enumerated in published data and, therefore,
are not included in these tables.
tional average for industry.
Between 1953 and 1981, Beijing directed an average
of 10.5 percent of total industrial investment into the
chemical industry; modernization drives in 1963-66
and 1973-78 boosted expenditures even higher (see
table 4). These efforts were directed at developing
modern, large-scale agricultural and organic chemical
industries.' Beijing invested heavily in fertilizer plants
and petrochemical complexes in particular-including
imports of whole factories-to reduce dependence on
commodity imports and to advance China's ability to
produce synthetic fibers, plastics, and rubber. By
1981 agricultural chemicals, organics, plastics, and
rubber products were the largest of the chemical
industry's eight sectors (see figure 1). Now that many
of the major processing projects are under way,
Beijing is placing greater emphasis upon downstream
processes, notably plastic for consumer products. At
the same time, investment in the inorganic chemical
industry also appears to be increasing (see table 5).
Table 6 displays output data for several products,
illustrating the impact of China's chemical industry
investment.
Investment in chemicals in 1981-85 will drop to 9.5
percent of total industrial investment, according to the
Sixth Five-Year Plan. This is because the completion
or near-completion of large-scale raw materials proc-
essing complexes will allow China to shift investment
to downstream chemical plants that are less costly.
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Figure 1
China: Chemical Production by Sector, 1981
0.7
Daily use
chemicals
7.5
Inorganic
chemicals
11.7
Rubber
12.9
Organics
20.2
Agricultural
chemicals
19.0
Plastics
Western plants and equipment have been the under-
pinnings of China's effort to develop a modern chemi-
cal industry. Chemical plants-almost exclusively for
petrochemicals and fertilizers-accounted for nearly
half the value of plant import contracts signed in
1963-79 (see table 7 and figure 2)
Although China has the capability to build some types
of chemical plants, imported facilities are the sole
producers of some products and primary producers of
many. We estimate, for example, that nearly all of
China's ethylene is produced in imported plants or in
Chinese-designed plants that use imported equipment;
imported urea plants by 1980 produced one-fourth of
China's nitrogen fertilizer and 80 percent of its urea.
Table 5
Allocation of Chemical Investment
1977-81
Chemical mining
NA
NA
NA
7.5
4.6
Inorganic and organic 23.0
38.2
44.7
50.5
49.8
Inorganic
NA
NA
NA
9.1
12.9
Organic
NA
NA
NA
41.4
36.9
Agricultural
65.6
47.9
41.9
30.2
23.2
Pharmaceuticals and
daily use
4.5
5.5
5.1
8.1
8.3
Rubber and plastic
products
NA
NA
NA
3.8
14.1
Of which:
Plastic products
for consumption
NA
NA
NA
0.4
11.2
Table 6
Chemical Production,
1970-82
Nitrogen
NA
NA
9.99
9.86
10.22
Phosphate
NA
NA
2.31
2.51
2.54
Potassium
NA
NA
0.02
0.02
0.03
Pesticides
0.32
0.42
0.54
0.48
0.46
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Sulfuric acid
2.91
4.85
7.64
7.81
8.17
Soda ash
1.08
1.24
1.61
1.65
1.74
Caustic soda
0.89
1.29
1.92
1.92
2.07
Ethylene
0.02
0.07
0.49
0.50
0.56
Plastics
0.18
0.33
0.90
0.92
1.00
Calcium carbide
0.70
0.98
1.52
1.51
1.67
Chemical fibers
0.10
0.15
0.45
0.53
0.52
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Table 7
China: Chemical Plant Imports
Year
Value of Value of all
Chemical Plants Plant Contracts
Chemical Plants
as a Share of Total
(million US $)
(million US $)
(percent)
Total
5,131
11,032
46.5
1963-66
113
210
53.8
1972
0
58
0.0
1973
1,090
1,265
86.2
1974
219
851
25.7
1975
166
408
40.7
1976
91
159
57.2
1977
40
81
49.4
1978
3,325
6,934
48.0
1979
87
1,066
8.2
Figure 2
China: Share of Total Plant Imports Held by
Chemical Plants
Chinese-designed plants predominantly produce inor-
ganic chemicals and low-grade fertilizers. In general,
the technologies are outmoded by Western standards;
nevertheless, they are suited to small-scale production
for local use. Without imported plants, we estimate
that China's capacity to produce ethylene would be
less than 5 percent of current levels; plastics, 15
percent; synthetic fibers (excluding cellulosic), 20
percent; and nitrogen fertilizer, 75 percent.
Energy
The chemical industry is the largest industrial con-
sumer of energy resources, drawing 17 percent of
1981 electricity output in addition to the oil, gas,
naphtha, and coal used as feedstocks. Government
concern about energy availability has forced the
chemical industry to plan expansion more carefully
and to restructure operations for increased efficiency.
For example, construction of several fertilizer and
petrochemical projects purchased in 1978 was delayed
largely to assure availability of energy feedstocks,
although financing, demand, location, and transporta-
tion factors also were reviewed.
^Chemical plants
?A1l plants
Energy conservation promises to be a continuing
pursuit. Under the economic readjustment policies of
the-past few years, officials specifically sought to close
small plants, which produce a variety of goods for
local consumption, because of inefficient operations.
Many chemical plants were included, especially the
almost 2,000 local fertilizer producers. Small, ammo-
nia-based nitrogen fertilizer plants are the most inten-
sive and inefficient energy consumers in the chemical
industry. We estimate that in 1978 these plants alone
used 4.5 percent of China's electricity supply and
accounted for 2.6 percent of total energy consump-
tion. By 1981 nearly one-fourth of these 2,000 plants
were closed, electricity use was down to 3.7 percent
and energy use to 3.1 percent. Nevertheless, in 1981
the nitrogen fertilizer industry as a whole still con-
sumed 4.5 percent of energy supplies to produce less
than 2 percent of GVIO.
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During a January 1983 industry meeting, the Chemi-
cal Ministry launched a new efficiency drive aimed at
closing as many as 400 mainly smaller plants by 1985
if they cannot increase quality and reduce energy
consumption. We estimate that planned 1985 output
levels for nitrogen fertilizer alone will require 4.3
percent of projected primary energy production.
Petroleum Feedstock Prospects
China's large-scale petrochemical complexes run on
crude oil supplied primarily by the Daqing and
Shengli oilfields. Shengli's output is declining, putting
more of a burden on Daqing where officials also
expect output to diminish in the late 1980s. At the
same time, demand for feedstocks will increase at
least 25 percent when facilities now under construc-
tion come on stream. We believe China will reduce
Daqing exports-currently around 10 million metric
tons yearly-if necessary to maintain supplies, rather
than cut back petrochemical production
Some planners in Guangdong Province and the
Shenzhen Special Economic Zone near Hong Kong
also are considering constructing additional facilities
in southern China in the late 1980s that may increase
requirements by an additional 30 percent or more
depend on offshore oil supplies and probably will not
be built if supplies are not assured.
Transportation
Inadequate rail and water transport facilities delay
deliveries, which can cause deterioration of some
chemical products. Some factories have built costly
pipelines to assure steady feedstock supplies. But
where raw materials are distant from final consum-
ers-the Qinghai potassium beds in western China
relative to eastern agricultural areas, for example-
rail transport is crucial and delays delivery up to six
months. Sloppy handling in transit adds to the prob-
lem; China Daily reports that 8 percent of yearly
chemical fertilizer output is wasted by bags breaking
during shipment.
Table 8
China: 1985 Production Plans
Million metric tons
(except where noted)
1982 1985 Average 25X1
Output Target Annual Rate
of Growth
Required
(percent)
Fertilizers
12.78
13.40
1.6
Of which:
Nitrogen
10.22
10.55
1.1
Phosphate
2.54
2.80
3.3
Potassium
0.025
0.05
26.0
Sulfuric acid
8.17
8.10
Soda ash
1.74
1.90
3.0
Caustic soda
2.07
2.10
0.5
Ethylene
0.56
0.70
7.7
Plastics
1.00
1.05
1.6
Synthetic rubber
0.12
0.17
12.3
Chemical fibers
0.52
0.78
14.5
The Sixth Five-Year Plan's goals for expanding
chemical production are likely to be met easily. Of
those products for which specific levels are enumerat-
ed, we believe only chemical fertilizers will not meet
the target. Sufficient capacity already is under con-
struction to fulfill plan requirements for ethylene,
plastics, synthetic rubber, and chemical fibers. Sulfu-
ric acid and caustic soda are already at 1985 levels,
and soda ash capacity can be added easily (see table
Chemical Fertilizers
Sufficient nitrogen fertilizer capacity will be added to
meet the 1985 target, but slow expansion of other
fertilizers means that additional nitrogen production
will impede China's efforts to balance its product mix
(see appendix A). Phosphate output may approach the
1985 goal only if existing plants are run more effi-
ciently or small plants are added; planned large-scale
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projects will not be completed before 1986. Similarly,
the large Qinghai potassium project will not be opera-
tional before the end of the plan period, so potassium
increases will have to come from smaller projects. We
do not expect the additional output from the small
plants to contribute enough to reach the plan's objec-
tives.
Petrochemicals
Beijing reorganized the petrochemical industry this
year to streamline operations and management. The
China Petrochemical Corporation falls directly under
the State Council and oversees more than 50 refiner-
ies and petrochemical complexes, and almost all
research, trade, and planning. The corporate form was
chosen to remedy the bureaucratic confusion caused
by past involvement of the Ministries of Chemicals,
Petroleum, and Textiles in the management of chemi-
cal facilities.
Coal Chemicals
China plans to develop a coal chemical sector to
supplement the oil- and gas-fed industry. It plans to
develop a major chemical industry in Shanxi Province
using abundant local coal. A large nitrophosphate
fertilizer plant there will be the first of several coal
chemical plants that will include calcium carbide and
other carbide products. A second coal chemical facili-
ty will be in Shenyang in northeast China, where
officials plan to produce benzene, naphthalene, tar,
and acids. We believe coal chemicals will not be a
significant factor in chemical production until the late
1980s or early 1990s.
Imports Reflect Development Priorities
China buys about 1.6 percent of world exports of
chemicals. Agricultural chemicals, plastics, crude
rubber (synthetic and natural), and organic chemicals
dominate China's chemical imports, with textile dye-
stuffs a small but growing factor (see figure 3).
Chemicals and rubber have accounted for 13 to 14
percent ($2.2-2.6 billion) of the value of all imports in
each of the last three years.
Agricultural chemicals-mostly nitrogen fertilizers-
account for the largest share of chemical imports.
Figure 3
China: Major Chemical Imports
[]Other
[]Crude rubber
[]Organic chemicals
[]Dyestuffs
? Plastics
Agricultural chemicals
a Lower import value in 1981-82 reflects depressed world prices, not
reduced volume.
b Estimate.
Depressed fertilizer prices in 1982 held down total
value, although volume of imports continued to rise.
Imports of potassium, phosphate, and compound (mul-
tinutrient) fertilizer products are also beginning to
increase. Reports from the Spring 1983 Trade Fair in
Guangzhou suggest that purchases of pesticides and
the intermediate chemicals used to manufacture pesti-
cides are up sharply this year after a decline in 1982.
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2bAl
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Plastics purchases have jumped 150 percent-twenty-
fold in value-between 1970 and 1982 and vie with
agricultural chemicals as the leading chemical import.
Rubber imports fell off in 1981, largely the result of
reductions in tire production, but recovered somewhat
in 1982. The organic chemical category covers a
broad range of products. Some of the more notable
imports are ethylene glycol and terephthalic acid
(both used in the manufacture of polyester) and
phthalic anhydride (used in the manufacture of plas-
tics, polyester, and insecticides). Official Chinese
trade data for 1982 also show increased interest in
inorganics after a lull in 1981. Purchases of soda ash
increased 150 percent and of caustic soda nearly 700
percent (in volume) last year. These two products have
a myriad of uses in manufacturing other products and
the large volume of 1982 imports cannot be attributed
to any particular activity.
For many products, Beijing's hopes to reduce imports
by adding capacity have been frustrated by rapidly
expanding consumption. For example, in 1973 China
purchased 13 urea fertilizer complexes capable of
producing almost 6.8 million metric tons annually,
more than enough to cover that year's imports (2.5
million tons) plus expected increases in consumption.
By 1980 these plants on the average were operating at
70 percent of capacity, producing about 4.8 million
tons-nearly double the 1973 import level. However,
small plant closures in 1978-80 cut national capacity
by as much as 1.5 million metric tons and consump-
tion levels nearly tripled between 1973 and 1980, so
that 1980 import requirements still exceeded 2 million
tons. Beijing recognizes that imports will be a long-
term necessity and is adding dockside bagging centers
to take advantage of lower prices on bulk cargoes.
New bagging facilities are already operating in three
ports.
According to recent press reports, the completion of
the new Kunming plant will end China's dependence
on imports of sodium tripolyphosphate (raw material
for synthetic detergent). Imports now cost about $60
million annually. Import substitution targets may also
be met for ethylene glycol. Imports dropped substan-
tially during 1982, probably because of temporarily
reduced production of polyester. If polyester output
rises in 1983, ethylene glycol imports may also in-
crease.
Major Suppliers. Japan, the United States, West
Germany, and Italy are China's largest volume sup-
pliers. Japan has increased exports to China steadily
over the last 10 years, but its share of sales has
dropped from 70 percent in 1972 to 25 percent in
1982. US sales became significant in the late 1970s,
and in 1982 accounted for another 25 percent, exceed-
ing the value of Japanese exports for the first time.
China seems to acquire some chemical products al-
most exclusively from certain suppliers. France is
virtually the only supplier of activated carbons; the
United States, antiknock preparations for fuels.
Canada is the major source of potassium fertilizers,
the United States of phosphates, and Japan of nitro-
gen fertilizer and pesticides.
The Soviet Union and Eastern Europe have increased 25X1
their share of Chinese imports in recent years. Bloc-
produced fertilizers marketed through European
firms have kept world prices low and attracted Chi-
nese buyers. The 1983 Sino-Soviet trade agreement
pledged shipments of Soviet fertilizer to China but did
not specify the volume.
sup y u to 0.5 million tons yearly, about one-fourth
of China's annual nitrogen fertilizer purchases. Most
Sino-Soviet chemical trade to date has been through
intermediaries, but Moscow plans a chemical exhibit
in Beijing for September 1983, with hopes of expand-
ing direct trade.
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Exports: Less Concentrated Than Imports
China is a minor exporter of chemicals, accounting
for less than 1 percent of the world market. Exports of
chemicals reached $1.2 billion in 1982 (exclusive of
explosives 1), about 6 percent of China's total sales 25X1
abroad and equivalent to about half of the cost of
' Explosives are included in the Standard International Trade
Classification (SITC) chemical category, but the Chinese do not
consider them a chemical, and they are not included here. However,
exports of explosives-specifically fireworks-have jumped from
less than $5 million in 1970 to more than $90 million last year, an
annual increase of 28 percent. The United States is China's largest
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chemical imports. Export products are more varied
than imports, with the 10 highest valued categories
accounting for less than half the total. Exports are
dominated by natural products and intermediate
chemicals made from natural products. Rosin and
resin acids is the top income-producing export, with
$114 million in sales in 1981, or 9.4 percent of
chemical exports. Medications, coal tar oils, hetero-
cyclic compounds, and scents and flavors also figure
prominently
China's customers also are more diverse than its
suppliers. In 1982 Hong Kong and Japan were by far
the largest buyers, each with only about 15 percent of
total exports. The United States accounted for about
11 percent and West Germany, 7 percent. China also
exports to other OECD nations, Soviet Bloc countries,
a number of lesser develo ed countries and newt
industrializing countries.
China plans to expand chemical exports and has '
begun to market chemical products more aggressively.
Some Western manufacturers are concerned that
China may be developing specific export capabilities,
particularly for petrochemicals, that would undercut
the sales of Japanese, North American, and European
We do not believe China is deliberately developing
export capabilities to unsettle world markets, nor do
we believe they are capable of doing so in this decade.
Expansion, especially of petrochemical capacity, prob-
ably will not even meet growing domestic require-
ments for fibers, plastics, and intermediates for manu-
facturing. Antidumping actions over sales of menthol,
potassium permanganate, and chloropicrin to the
United States and barium chloride, oxalic acid, and
paracetamol to Europe are likely to recur. However,
we believe they will not be common or predictable.
With the expansion of chemical capacity under way in
the Middle East and other locations, China is not
likely to significantly increase its share of world
production of most chemicals.
Quality control problems also restrain China's impact
on world chemical markets. Most export products are
carefully screened for quality assurance, but China
We expect US firms to benefit from the development
of China's chemical industry in this decade through
both commodity trade and technology transfer. We
believe China's consumption of such major commod-
ities as agricultural chemicals, resins, and plastics will
outpace increases in production, so import require-
ments will remain strong. Imports of US chemicals in
1982 amounted to nearly $500 million, 25 percent of
China's chemical imports but only 1.5 percent of US
chemical exports. Agricultural chemicals, plastics,
and chemical catalysts account for 90 percent of US
chemical sales to China.
The US phosphate industry-depressed since 1980
and facing further downturns because of low domestic
demand-will be a major beneficiary of China's
imports. At present, the United States supplies per-
haps 80 percent of China's imports of phosphate
fertilizers.
IWe expect
China to remain the largest customer for US phos-
phates.
Technology Transfer Prospects
Expansion of production capacity also will offer op-
portunities for US involvement. Beijing plans to build
at least two phosphate plants based on US technol-
ogies
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At least one US firm
is also involved in the current construction of three
new urea fertilizer plants; although built by Japanese
and German companies, the plants use Texaco tech-
nology
China also has explored the feasibility of buying US
equipment and technology to produce pesticides, poly-
vinyl chloride, chlorine, caustic soda, and sulfuric
Several Chinese plants have begun joint ventures with
US firms to manufacture chemical products for both
domestic and export markets. So far these ventures
have focused on daily-use articles and pharmaceuti-
cals, including cosmetics, deodorants, and analgesics.
Potential Losses
China's exports of chemicals are such a small share of
world trade that, even if exports increased substantial-
ly, it is unlikely that Chinese products will cause
significant competition for US firms in third-country
markets. We do expect US exports to China of
selected commodities, however, to decline during the
1980s. Chinese imports of US urea fertilizer (sales of
which amounted to $55 million in 1982) may decline
with increasing production and the availability of less
costly products from Soviet Bloc and Middle Eastern
suppliers. Increases in exports of some plastics (poly-
ethylene and polypropylene, with sales of $213 million
in 1982) will probably slow toward mid-decade. If
China's own capacity potential is realized, US exports
of plastics may level off or even decline in the late
1980s. No other products with a significant share of
China's chemical imports are likely to experience
major reductions.
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Appendix A
Sectoral Development
Products for Agriculture
The chemical industry provides continuing large-scale
support to agriculture. In addition to chemical fertil-
izers, demand for such products as herbicides, pesti-
cides, and plastic sheet (for mulching) has increased
greatly.
China is the world's largest buyer of fertilizers, with
nitrogen fertilizer dominating imports. Industry ex-
pansion in the 1 960s entailed construction of Chinese-
designed, low-grade nitrogen fertilizer plants intended
to at least partially supplant import requirements. In
spite of increased production, however, imports con-
tinued to rise-doubling from 1965 to 1967. Finally,
in the early 1970s, policymakers decided to import 13
modern urea (high-grade nitrogen) plants. As those
erational China's reliance on im-
plant9:
ports
in 1980 from
more cent in the early 1970s, and it
appeared that the import substitution policy was
succeeding. Three additional plants are now under
construction, but imports are running higher than
ever (in volume terms), back up to 16 percent of
supply
Beijing's long-term preoccupation with nitrogen has
left phosphate and potassium fertilizer capacity un-
derdeveloped. Without appropriate proportions among
these three nutrients, fertilizer applications yield less
than optimum results. Chinese media report govern-
ment anxiety about continuing imbalances. Phos-
phate, potassium, and compound (multinutrient) fer-
tilizer imports have risen sharply. An Irish firm
recently completed a feasibility study for a potassium
project in Qinghai Province that eventually may
obviate the need for imports. One compound nitro-
phosphate plant is under construction in Shanxi Prov-
ince, and a second, imported from Romania, is being
built in Anhui. China has large phosphate reserves,
but they are inaccessible and, because of impurities,
hard to process. Until an effective method is available
to exploit domestic resources, officials expect to re-
main dependent on imports of phosphate rock or
phosphoric acid for inputs to fertilizer plants or on
imports of finished phosphate fertilizers. 25X1
China balances use of crop protection chemicals (in-
secticides, herbicides, and fungicides) with natural
agents. A visiting scientific delegation in 1975 lauded 25X1
Chinese nonchemical insect controls after observing
hundreds of ducks herded through a rice paddy,
eating, according to the group's host, about 200
insects per hour per duck. China, however, wants to
develop a modern, varied pesticide industry to supple-
ment such biological pest controls. 25X1
DDT and benzene hexachloride
(BHC; lindane) were the primary pesticides in use
through 1982. However, research on retention of
organochlorine pesticide residues in humans led to the
issuance in mid-1982 of new health standards and 25X1
safety regulations for pesticide use, and now Beijing 25X1
has ordered a halt in production of DDT and BHC by
1985. In spite of highly publicized concern for pesti-
cide safety, the principal alternatives to DDT and
BHC are organophosphorous agents, most of which
are highly toxic; one safe new product (phoxim) that
impressed the 1975 delegation apparently is not yet
widely available.
The pesticide industry seems to be in disarray. Many
factories have been closed or reorganized, first by the
readjustment and more recently by the ban on the two
major products. Raw materials shortages have re-
duced operations at some remaining plants. All told,
annual production has slipped back to the 1977 level,
15 percent below peak output in 1979-80. Demand
has fallen as well. Under the new agricultural incen-
tive program, farmers themselves must buy pesticides
that formerly the state distributed, and apparently
many believe these pesticides are ineffective and are
balking at paying the asking price. In June 1983,
Beijing announced plans to build 20 new pesticide
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plants by 1985 with total capacity of 20,000 tons,
about a 4-percent addition to current production
levels.
Planned use of plastic sheets for mulching will quad-
ruple in 1981-83 but will still cover less than
1 percent of sown area. Zhongguo Nongmin Bao
reports that yields of cotton and peanuts from
mulched fields increased 30 to 70 percent compared
with yields from unmulched fields. The Ministry of
Agriculture, encouraged by these results, is now
urging more widespread use of plastic mulch and has
asked the petrochemical corporations to increase pro-
duction
Products for the Textile Industry ?
In the early 1970s, Beijing decided to develop a major
petrochemical-based synthetic fiber sector, with ma-
jor new production facilities in Shanghai, Tianjin,
Liaoyang, Daqing, Nanjing, and Beijing. By 1979
China had signed nearly $3 billion in contracts for
plants to produce textile-grade synthetic fibers and
associated products. The Textile Ministry publicly
gave priority to the chemical-fiber sector in 1980,
with 80 percent of state investment for the textile
industry allocated to chemical fibers. Some of these
facilities are under Textile Ministry jurisdiction but
are included here since they affect overall chemical
industry production.
China, once reliant on natural fibers, now produces
rayon, acetate (cellulosic fibers), nylon, acrylic, and
polyester (the noncellulosics). Manmade fibers ac-
counted for 14 percent of fiber production in 1980 and
could reach 24 percent by 1985. Their availability has
spurred a near revolution in the textile industry,
where they have contributed to improved supplies of
apparel for both domestic and export markets.
Synthetic fibers are contributing to other industries as
well. Polypropylene is replacing cloth and burlap for
shipping bags, for example. Industrial-grade synthet-
ics also serve as tire cord, conveyor belts, tubing,
hoses, and other purposes.
Dyes and fabric finishes have not kept pace with
textile production capabilities. China has been unable
to produce colorfast dyes and other chemical treat-
ments in the quantities and quality needed. It also has
been slow to develop and distribute processes for
mildew prevention, water and soil repellency, and
other such features, concentrating available capacity
on export goods instead. Beijing has purchased addi-
tional capacity to produce dyestuffs in an effort to
upgrade that industry and is slowly expanding other
chemical treatment capabilities.
Products for Other Industries
China's plastics industry is expanding in conjunction
with synthetic fibers since they are, for the most part,
coproducts of petrochemical processing. Plastics pro-
duction originated on a small scale in the 1950s, but
received little attention until the 1960s. Imports,
mostly of polyvinyl chloride, skyrocketed in 1967 even
as new, imported capacity was under construction. In
spite of the additions to capacity throughout the
1970s, imports have increased steadily. By 1980,
according to the State Statistical Bureau, imports of
PVC and polyethylene reached 120,000 tons, nearly
12 percent of supply.
China's plastics production reached 1 million tons last
year, primarily PVC, polystyrene, polypropylene, and
high- and low-density polyethylene. The products are
manufactured into film and sheet (for packaging,
utility, and agricultural use), containers, hose, pipe,
cable, and wire insulation; rainwear, shoes, and other
consumer goods; and moldings and extrusions such as
radio cases. At least one Shanghai plant produces
polyvinyl carbazole expressly for electronic compo-
nents that require high temperature resistance. An
imported synthetic leather plant nearly complete in
Shandong Province has a design capacity of 3 million
square meters, enough to increase the production of
leather shoes by 20 percent.
Beijing plans continued development of the plastics
industry. Last year, China acquired polystyrene tech-
nology from Japan for a new 5,000-ton plant in
Lanzhou to manufacture housings and parts for tele-
visions and other electrical goods, beginning in 1984.
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Currently in demand is Western equipment to up-
grade injection molding capabilities and to produce
plastic products for consumption such as trash bags,
China also has issued inquiries to increase methyl
methacrylate capacity (now less than 12,000 tons)
concurrent with acrylonitrile fiber expansion (a by-
product of acrylonitrile production is used to manu-
facture methyl methacrylate). Methyl methacrylate
applications cover the full range of uses for clear
plastics, from display cases to aircraft windows and
protective coatings.
China is the world's fifth-largest producer of natural
rubber (150,000 tons in 1982) and supplements that
with synthetic rubber (123,000 tons). Domestic pro-
duction furnishes about half of supply, the balance
being natural rubber from Southeast Asia and Sri
Lanka and synthetic rubber from the West. The
Chinese Academy of Sciences claims discovery of a
new catalyst that could double synthetic rubber pro-
duction, and Agriculture Vice Minister He Kang says
China also wants to double production of natural
rubber. He Kang expects natural rubber imports to
expand, in any case.
The two largest consumer products of rubber in China
are rubber shoes (including sport shoes) and tires.
Rubber footwear output has increased about 3.5
percent annually since 1958 and has become a $45
million export industry. China and Nike have estab-
lished a joint venture to produce Nike sport shoes but
have had trouble getting the project into production.
Tire output dropped sharply in 1981 following the
contraction of wheeled vehicle production, but is still
the primary rubber product industry. To improve tire
quality, China has put an imported nylon tire cord
plant into production and wants Western help to
manufacture radials. Dunlop (UK) is providing the
equipment and know-how to manufacture 130,000
truck tires, half for export, and is discussing addition-
al projects to produce tires, hydraulic hoses, and latex
foam.
Synthetic detergents have undergone considerable
growth with the addition of alkylbenzene plants in
Nanjing, Liaoyang, and Beijing and a sodium tripoly-
phosphate plant in Kunming. Jingji Guanli in 1982
revealed that China's per capita detergent output was
less than 10 percent of the world average and urged
continued expansion. The journal listed synthetic de-
tergents as one product that China will not be export-
ing for many years. Toiletries and cosmetics is one
popular sector of the chemical industry that will see
expanded exports. China has added capacity for a
variety of personal products, including deodorant and
plastic razors. Many of these projects are joint ven-
tures with foreign firms with output destined for both
domestic use and exports.
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Appendix C
Chemical Imports and Exports
Table C-1
China: Imports of Chemical Commodities, f.o.b.
231 Rubber, crude (including synthetic
and reclaimed):
2311 Natural rubber and similar natural gums
88,008
155,089
196,347
201,095
294,267
400,785
213,014
2312 Synthetic rubber and rubber substitutes
6,536
9,069
10,963
13,932
17,620
25,871
39,029
2313 Reclaimed rubber
0
2
0
0
0
0
8
2314 Waste and scrap of unhardened rubber
1,339
0
45
55
675
441
91
5121 Hydrocarbons and their derivatives
10,215
19,228
31,077
16,081
14,565
28,517
45,368
51211 Styrene
0
0
85
171
38
840
2,000
51212 Other hydrocarbons
5,031
16,320
24,458
8,520
8,472
18,479
35,259
51213 Halogenated derivatives of hydrocarbons
3,218
1,202
2,890
3,262
2,754
1,682
7,148
51214 Other derivatives of hydrocarbons
1,967
1,706
3,644
4,128
3,301
7,516
961
5122 Alcohols, phenols, phenol-alcohols, glycerine
12,540
36,665
68,309
88,054
90,043
159,360
49,849
51221 Methanol
1,744
1,558
5,570
7,156
4,052
1,103
925
51222 Other acyclic alcohols and derivatives
6,285
23,635
38,019
41,475
45,132
128,262
31,352
51223 Cyclic alcohols and derivatives
9
1
18
39
1
282
113
51224 Ethyl alcohol or neutral spirits
0
0
0
0
0
5
4
51225 Fatty alcohols
0
10
98
882
174
611
414
51226 Glycerol and glycerol lyes
109
263
2,225
6,223
4,145
7,326
2,332
51227 Phenols and phenol-alcohols
4,160
6,519
16,424
23,761
25,668
12,622
11,697
51228 Derivatives of phenols and phenol-alcohols
233
4,680
5,955
8,519
10,871
9,149
3,012
5123 Ethers, epoxides, acetals
292
2,442
2,427
2,984
963
1,517
2,759
51231 Ethers, ether-alcohols, ether-phenols
74
1,039
460
1,164
262
1,424
2,757
51232 Epoxides, epoxyalcohols
218
1,403
1,967
1,820
701
93
2
5124 Aldehyde-, ketone-, and quinone-function
compounds
2,390
2,253
5,196
6,999
8,717
4,829
24,672
51241 Aldehydes, aldehyde-alcohols
102
239
360
891
2,325
3,374
4,392
51242 Derivatives of oxygen-function aldehydes
20
338
4
48
246
140
460
51243 Ketones, ketone-alcohols
2,268
1,675
4,833
6,060
6,146
1,315
19,820
5125 Acids and their derivatives
3,499
37,084
47,608
47,075
42,166
77,570
153,097
51251 Monoacids and their anhydrides
1,597
5,148
7,455
8,821
11,758
11,910
17,980
51252 Polyacids and their anhydrides
776
28,710
38,291
36,490
28,356
63,392
131,921
51253 Oxygen-function acids and derivatives
1,126
3,226
1,862
1,764
2,053
2,268
3,196
5126 Inorganic esters, their salts and derivatives
5,436
9,673
11,836
15,321
12,023
5,594
312
51261 Sulphuric esters and their salts
0
22
0
0
0
0
0
51262 Nitrous and nitric esters
0
1
0
0
0
0
0
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China: Imports of Chemical Commodities, f.o.b. (continued)
51263 Phosphoric esters and their salts
56
51
27
4,569
6,636
3,978
217
51264 Carbonic esters and their salts
0
0
28
0
0
0
0
51269 Other esters of mineral acids
5,380
9,600
11,781
10,752
5,387
1,616
95
5127 Nitrogen-function compounds
105,704
16,354
28,236
43,345
45,958
52,106
56,444
51271 Amine-function compounds
2,681
2,898
9,722
15,718
23,209
32,344
18,185
51272 Single or complex oxygen-function
aminocompounds
3,156
6,215
6,145
9,632
8,089
9,219
25,405
51273 Quaternary ammonium salts and
hydroxides
54
5
26
1
53
28
35
51274 Amide-function compounds
96,764
5,783
10,650
14,600
10,136
8,271
7,468
51275 Imide-function compounds
254
121
301
1,006
1,582
217
22
51276 Nitrile-function compounds
2,590
1,173
4
1
220
1,367
1,010
51277 Diazo-, azo-, and azoxy-compounds
152
150
260
221
648
511
78
51278 Organic derivatives of hydrazine or
hydroxylamine
0
2
6
33
0
11
8
51279 Compounds with other nitrogen functions
52
6
1,123
2,133
2,021
137
4,232
5128 Organo-inorganic and heterocyclic
compounds
6,213
35,308
31,398
41,740
39,437
60,171
42,973
51281 Organo-sulphur compounds
163
1,753
1,060
1,494
722
216
1,315
51282 Organo-arsenic compounds
0
30
48
0
0
0
0
51283 Organo-mercury compounds
354
0
12
0
27
24
18
51284 Other organo-inorganic compounds
3
265
165
649
977
4,583
1,675
51285 Heterocyclic compounds
5,333
33,074
30,045
39,338
37,654
55,320
39,914
51286 Sulphonamides
360
174
64
260
55
24
52
51287 Sultones and sultams
0
13
3
0
2
4
0
5129 Other organic chemicals
382
43
84
231
1,173
1,730
2,267
51291 Enzymes
0
8
14
67
80
106
497
51292 Sugar, chemically pure, excluding sucrose,
glucose, lactose
0
0
5
94
3
2
2
513 Inorganic chemicals: elements, oxides and
halogen salts:
5131 Oxygen, nitrogen, hydrogen, rare gases
0
134
4
34
133
109
59
51311 Oxygen
0
2
0
0
0
0
0
51312 Nitrogen
0
19
0
0
0
0
0
51313 Hydrogen and rare gases
0
112
4
0
0
0
0
5132 Chemical elements NES
1,036
2,983
12,992
28,537
26,591
6,374
1,546
51322 Other halogens
333
63
37
669
587
208
132
51323 Sulphur, sublimed or precipitated, collodial
sulphur
0
8
2,467
1,519
1,414
2,390
771
51324 Metalloids NES
5
0
2,681
7,896
7,981
289
445
51325 Mercury
0
0
102
0
0
0
0
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Table C-1 (continued)
51326 Alkali, alkaline-earth, and other rare earth
metals
3
0
0
1
32
7
4
51327 Carbon black, and so forth
696
2,903
7,704
18,452
16,576
3,480
194
51328 Gas carbon
0
9
0
0
0
0
0
5133 Inorganic acids and oxygen compounds of
nonmetals
47
100
146
478
462
751
396
51331 Hydrochloric acid and chlorosulphonic acid
0
3
0
1
0
15
35
51333 Sulphuric acid, oleum
0
5
0
7
1
20
50
51334 Nitric acid, sulphonitric acids
0
32
14
0
0
8
12
51335 Phosphorus pentoxide and phosphoric acids
0
0
0
56
19
50
16
51337 Boric oxide and boric acid
0
0
1
223
174
241
2
51339 Other inorganic acids and compounds of
nonmetals, metalloids
47
60
130
191
268
417
281
5134 Halogen and sulphur compounds of
nonmetals or metalloids
1,192
543
88
105
76
29
138
51341 Halides, and other compounds of nonmetals
or metalloids
457
34
0
1
19
29
138
51342 Sulphides of nonmetals or of metalloids
735
509
88
104
57
0
0
5135 Metallic oxides, of a kind used in paints
176
3,439
5,158
5,708
6,366
8,201
9,472
51351 Zinc oxide and zinc peroxide
0
0
326
56
784
8
33
51352 Manganese oxides
0
752
1,706
1,194
934
143
331
51353 Iron oxides and hydroxides
4
1
0
0
16
2
53
51354 Cobalt oxides and hydroxides
0
0
1
38
2
41
13
51355 Titanium oxides
170
2,217
1,387
1,567
1,611
4,048
6,934
51356 Lead oxides
3
469
1,738
2,853
3,019
3,958
2,107
5136 Other inorganic bases and metallic oxides
728
4,080
7,961
11,064
30,521
45,676
19,236
51361 Ammonia, anhydrous or in aqueous solution
0
0
0
0
32
2,305
2
51362 Sodium hydroxide
3
594
5,668
9,238
26,376
36,621
18,192
51363 Other hydroxides, peroxides of sodium or
potassium
0
30
0
7
0
449
136
51364 Oxides of strontium, barium, or magnesium
0
5
0
217
250
428
8
51365 Aluminium oxide and hydroxide
0
1,503
127
321
232
109
69
51366 Artificial corundum
0
443
348
9
42
4
110
51367 Chromium oxides and hydroxides
558
0
1,049
656
2,264
5,585
191
51368 Tin oxides (stannous oxide and stannic
oxide)
0
121
0
0
0
0
0
51369 Other inorganic bases and metallic oxide,
hydroxide, peroxide
166
1,384
769
615
1,326
176
528
5141 Metallic salts and peroxysalts of inorganic
salts
14,380
54,363
20,053
24,276
29,946
29,155
26,915
51411 Fluorides, fluorosilicates, fluoroborates
0
1
22
147
1
13
45
51412 Chlorides and oxychlorides
13,634
52,704
19,782
23,895
29,846
29,085
26,335
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China: Imports of Chemical Commodities, f.o.b. (continued)
51413 Chlorites and hypochlorites
3
0
0
0
0
2
0
51414 Chlorates and perchlorates
0
140
61
234
99
55
535
51415 Bromides, oxybromides, bromates,
perbromates, hypobromites
3
0
0
0
0
0
0
51416 Iodides, oxyiodides, iodates, and periodates
739
1,518
188
0
0
0
0
5142 Other metallic salts and peroxysalts of
inorganic acids
3,625
11,249
15,165
25,017
26,756
31,299
16,173
51421 Sulphides, including polysulphides
57
0
2
10
3
18
315
51422 Dithionites, including stabilized with
organic substances .
96
123
1,063
2,564
827
0
53
51423 Sulphites and thiosulphates
35
6
7
0
0
19
86
51424 Sulphates (including alums) and
persulphates
2,107
2,342
3,193
4,949
9,609
5,821
1,210
51425 Nitrites and nitrates
2
2
10
212
708
854
603
51426 Phosphites, hypophosphites, and phosphates
1,226
8,540
10,871
15,539
13,193
9,583
12,832
51427 Arsenites and arsenates
4
0
0
0
0
0
0
51428 Neutral sodium carbonate (soda ash)
0
218
17
1,740
2,256
14,782
818
51429 Other carbonates and percarbonates
98
18
1
2
159
222
256
5143 Other metallic salts ahd peroxysalts of
inorganic acids
3,790
5,035
5,765
6,000
12,978
14,894
10,118
51431 Cyanides and complex cyanides
3,048
1,860
1,135
1,854
1,874
155
414
51432 Fulminates and cynates
31
0
290
0
1
1
2
51433 Silicates
0
4
1
2
89
137
47
51434 Borates and perborates
0
47
67
6
50
46
7
51435 Salts of metallic acids
3
1,064
2,505
2,428
5,674
9,663
9,298
51436 Other salts and peroxysalts of inorganic
acids
0
7
1,402
1,423
5,259
3,949
222
51437 Colloidal precious metals and compounds,
organic or inorganic
708
2,053
364
286
30
943
129
5149 Inorganic chemical products NES
2,259
6,589
7,501
13,120
16,307
14,013
10,626
51492 Hydrogen peroxide
0
108
146
85
10
10
46
51494 Calcium carbide
2,251
6,406
7,049
12,373
15,650
13,790
10,399
51495 Other carbides
2
60
242
444
517
193
19
51496 Hydrides, nitrides and azides, silicides, and
borides
1
0
61
2
16
7
17
515 Radioactive and associated materials:
5151 Radioactive chemical elements and isotopes
54
187
517
73
311
427
369
5152 Stable isotopes and their compounds
0
17
0
3
3
32
46
5153 Compounds, inorganic or organic of thorium
0
0
0
0
1
13
0
Secret 20
Approved For Release 2008/02/14: CIA-RDP84SO0928ROO0100010004-8
 Approved For Release 2008/02/14: CIA-RDP84SO0928ROO0100010004-8
Secret
Table C-1 (continued)
521 Mineral tar and crude chemicals from coal,
oil, and natural gas:
531 Synthetic organic dyestuffs, natural indigo,
color lakes:
5310 Synthetic organic dyestuffs, natural indigo,
color lakes
10,382
20,677
32,587
52,642
74,718
60,930
71,761
53101 Synthetic organic dyestuffs and natural
indigo
10,382
20,629
31,675
52,533
74,565
60,614
71,713
532 Dyeing and tanning extracts, synthetic dyeing
materials:
5321 Dyeing extracts (vegetable and animal)
27
10
62
5
85
50
195
5323 Synthetic tanning materials
6
10
8
33
298
544
790
5324 Tanning extracts of vegetable origin
1,075
16
626
459
653
1,905
684
533 Pigments, paints, varnishes, and related
materials:
5331 Coloring materials, NES
313
3,426
5,026
3,592
4,866
7,917
10,478
5332 Printing ink
1
259
265
257
528
649
1,247
5333 Prepared paints, enamels, lacquers,
varnishes, mastics
1,835
4,860
7,133
12,549
6,737
7,848
23,408
53331 Prepared pigments
1,231
185
1,572
494
1,456
2,034
1,732
53332 Varnishes and lacquers
475
3,929
5,495
11,969
5,191
5,408
21,193
53333 Artists colors
0
163
9
11
8
58
44
53334 Prepared driers
130
0
0
0
1
17
182
53335 Putty, painters' fillings, and so forth
0
582
57
75
81
331
256
541 Medicinal, pharmaceutical products:
5411 Provitamins and vitamins
216
459
371
472
135
259
543
5413 Antibiotics, penicillin, streptomycin
56
41
266
240
56
2,360
2,024
5414 Vegetable akaloids, their salts and
derivatives
661
2,740
1,989
894
2,628
1,535
123
5415 Hormones
52
426
176
302
171
436
4,505
5416 Glycosides, glands and their extracts;
sera, and vaccines
116
225
238
181
745
1,016
3,028
54161 Glycosides, natural or reproduced by
synthesis
24
14
5
6
7
43
86
54162 Organo-therapeutic glands or other organs,
not powdered
84
14
116
40
709
924
2,722
Approved For Release 2008/02/14: CIA-RDP84SO0928ROO0100010004-8
 Approved For Release 2008/02/14: CIA-RDP84SO0928ROO0100010004-8
Table C-1.
China: Imports of Chemical Commodities, f.o.b. (continued)
54163 Bacterial products, sera, vaccines
8
197
116
136
28
49
219
5417 Medicaments
1,376
3,838
3,210
5,158
7,709
12,262
16,513
5419 Pharmaceutical goods
443
1,299
1,204
1,698
1,461
1,316
1,088
54191 Wadding, gauze, bandages, and similar
articles
443
0
11
0
150
382
484
5511 Essential oils
41
449
738
716
1,189
1,364
1,837
5512 Synthetic perfume and flavor materials and
concentrates
6
146
129
99
213
729
2,522
553 Perfumery, cosmetics, and toilet preps. (except
soap):
554 Soap, cleansing and polishing preparations:
5541 Soaps
632
974
718
184
184
45
187
5542 Surface-acting agents and washing
preparations
1,562
5,582
6,464
9,008
8,104
5,652
9,948
5611 Nitrogenous fertilizer and fertilizer material
58,534
369,007
293,649
364,201
511,022
673,932
499,142
5612 Phosphatic fertilizers and materials
4,982
13,051
16,798
26,214
34,833
68,515
68,498
56121 Basic slag
0
0
0
0
0
3,206
0
56129 Phosphatic fertilizer and fertilizer material
4,982
13,051
16,798
26,214
34,833
65,309
68,498
5613 Potassic fertilizer and fertilizer material
635
4,499
3,058
8,710
36,299
52,820
90,296
5619 Fertilizers, NES
615
7,298
28,906
75,003
26,524
182,873
143,792
5711 Propellent powders and other prepared
explosives
0
24
124
0
134
235
254
57112 Other prepared explosives
0
24
124
0
134
235
254
5712 Fuses, primers, and detonators
3
2
54
0
29
27
63
57121 Mining, blasting, and safety fuses
1
0
5
0
0
0
0
57122 Percussion and detonating caps
2
2
49
0
0
0
0
5713 Pyrotechnic articles
0
1
3
0
173
117
361
5714 Hunting and sporting ammunition
8
1
0
39
50
81
88
Approved For Release 2008/02/14: CIA-RDP84SO0928ROO0100010004-8
 Approved For Release 2008/02/14: CIA-RDP84SO0928R000100010004-8
Secret
Table C-1. (continued)
581 Plastic materials, regenerated cellulose, and
artificial resins:
5811 Condensation, polycondensation products
6,193
12,067
25,337
30,877
56,666
107,072
107,000
5812 Polymerization and copolymerization
products
21,053
51,774
66,463
78,270
990,075
231,247
337,022
5813 Regenerated cellulose and vulcanized fibers
708 -
5,584
6,625
26,344
8,615
33,142
22,207
58131 Vulcanized fiber
1
1
0
0
0
0
0
58132 Regenerated cellulose and chemical
derivatives
707
5,583
6,625
26,344
8,615
33,142
22,207
5819 Other artificial resins and plastic materials
1
87
199
248
757
1,074
656
58191 Hardened proteins
0
0
0
0
18
29
0
58192 Modified natural resins, ester gums, and so
forth
0
0
0
128
314
7
22
599 Chemical materials and products, NES:
5992 Disinfectants, insecticides, fungicides
16,244
32,987
32,021
62,391
96,459
102,946
92,587
5995 Starches, insulin, gluten; albuminoidal
substances; glues
70
534
485
692
1,061
3,621
8,177
59951 Starches, insulin
0
0
0
0
0
74
76
59952 Gluten and gluten flour
0
0
0
0
0
5
53
59953 Casein, caseinates, derivatives, and
casein glues
0
287
186
326
152
612
2,084
59954 Albumins, albuminates, and derivatives
55
144
50
0
0
90
426
59955 Gelatin and gelatin derivatives, and so forth
0
8
57
108
108
63
15
59956 Peptones and other protein substances and
derivatives
0
0
58
26
46
111
51
59957 Dextrins, soluble, or roasted starches and
starch glues
0
0
0
0
7
21
131
59959 Prepared glues, NES
15
95
133
231
748
2,646
5,340
5996 Wood and resin-based chemical products
0
17
1
1
7
46
87
59962 Concentrated sulphite lye
0
0
0
0
0
5
11
59963 Spirits of turpentine, and so forth
0
0
1
0
0
3
20
59964 Rosin and resin acids, and so forth
0
17
0
0
7
38
56
59965 Wood tar, wood tar oils, and so forth
0
0
0
1
0
0
0
5997 Organic chemical products, NES
4,319
2,591
3,633
9,975
18,620
17,773
14,249
59971 Artificial waxes and prep waxes not
emulsified or containing solvents
3
12
42
53
180
159
247
59972 Artificial and collodial graphite
0
31
76
49
42
13
9
59973 Animal black, including ivory black, bone
black
0
18
0
0
0
0
0
Approved For Release 2008/02/14: CIA-RDP84SO0928R000100010004-8
 Approved For Release 2008/02/14: CIA-RDP84SO0928ROO0100010004-8
Table C-1.
China: Imports of Chemical Commodities, f.o.b. (continued)
59974 Prepared glazings and mordants
49
144
914
1,456
2,557
1,377
970
59975 Antiknock preparations, and so forth
3,834
2,176
1,836
4,982
12,352
14,028
12,782
59976 Prepared rubber accelerators
433
166
716
3,291
3,322
1,997
12
59977 Prepared culture media
0
11
49
144
113
157
171
59978 Charges for fire extinguishers
0
33
0
0
56
42
57
5999 Chemical products and preparations, NES
2,798
17,804
22,616
25,570
38,005
57,175
36,947
59991 Modeling pastes and dental impression
compounds
0
0
0
1
0
3
24
59992 Activated carbon and activated natural
mineral products
4
22
573
79
3,066
5,979
1,736
59994 Pickling preparations for metal surfaces,
fluxes, and so forth
0
15
14
213
54
233
216
59995 Composite varnish solvents and thinners
0
13
2
16
83
262
402
59999 Other chemical products and preparations,
2,794
17,753
22,026
25,260
34,802
50,698
34,569
Secret 24
Approved For Release 2008/02/14: CIA-RDP84SO0928ROO0100010004-8
 Approved For Release 2008/02/14: CIA-RDP84SO0928ROO0100010004-8
Secret
Table C-2
China: Emports of Chemical Commodities, f.o.b.
231 Rubber, crude (including synthetic and
reclaimed):
2311 Natural rubber and similar natural gums
99
33
73
641
1,260
1,495
2,351
2312 Synthetic rubber and rubber substitutes
4
23
7
152
1,006
3,111
1,949
2313 Reclaimed rubber
3
24
46
61
125
352
412
2314 Waste and scrap of unhardened rubber
0
0
0
0
0
0
5
5121 Hydrocarbons and their derivatives
79
1,832
1,481
2,613
17,065
21,511
22,815
51211 Styrene
0
0
0
2
1
48
.0
51212 Other hydrocarbons
16
74
168
1,463
14,861
14,684
14,532
51213 Halogenated derivatives of hydrocarbons
18
459
418
257
1,023
2,970
4,626
51214 Other derivatives of hydrocarbons
45
1,299
895
892
1,180
3,809
3,657
5122 Alcohols, phenols, phenol-alcohols, and
glycerine
2,547
9,395
12,577
22,744
39,874
61,785
61,102
51221 Methanol
49
140
168
208
1,965
8,917
5,999
51222 Other acyclic alcohols and derivatives
13
1,135
1,349
1,584
10,692
15,427
11,981
51223 Cyclic alcohols and derivatives
2,087
7,538
10,365
19,550
24,847
26,869
30,125
51224 Ethyl alcohol or neutral spirits
111
108
247
122
102
117
793
51225 Fatty alcohols
0
0
3
8
66
7
9
51226 Glycerol and glycerol lyes
1
3
10
19
0
20
246
51227 Phenols and phenol-alcohols
277
376
398
1,217
2,004
9,590
11,370
51228 Derivatives of phenols and phenol-alcohols
9
94
36
36
199
837
579
5123 Ethers, epoxides, and acetals
323
548
923
781
1,482
4,152
4,902
51231 Ethers, ether-alcohols, and ether-phenols
283
521
888
778
1,479
3,958
4,729
51232 Epoxides, epoxyalcohols
0
0
0
0
0
191
167
51233 Acetals and hemiacetals
40
27
35
3
3
3
6
5124 Aldehyde-, ketone-, and quinone-function
compounds
2,897
6,569
6,067
9,273
10,863
20,131
18,672
51241 Aldehydes and aldehyde alcohols
1,328
3,080
2,476
3,270
4,092
4,777
5,805
51242 Derivatives of oxygen-function aldehydes
1
21
40
92
137
244
216
51243 Ketones and ketone alcohols
1,568
3,468
3,551
5,911
6,634
15,110
12,651
5125 Acids and their derivatives
2,120
4,643
8,753
11,714
24,279
52,639
49,562
51251 Monoacids and their anhydrides
702
2,000
3,293
5,113
11,488
21,824
20,027
51252 Polyacids and their anhydrides
1,225
1,362
2,582
2,896
7,290
19,390
15,680
51253 Oxygen-function acids and derivatives
194
1,280
2,878
3,705
5,501
11,425
13,855
5126 Inorganic esters, their salts and derivatives
12
50
94
37
131
674
869
51261 Sulphuric esters and their salts
0
0
1
8
0
0
0
51263 Phosphoric esters and their salts
0
17
5
19
16
302
429
51264 Carbonic esters and their salts
0
4
0
0
0
0
0
51269 Other esters of mineral acids
0
29
88
10
115
372
440
5127 Nitrogen-function compounds
1,244
7,753
6,115
9,187
18,373
37,959
40,780
Approved For Release 2008/02/14: CIA-RDP84SO0928ROO0100010004-8
 Approved For Release 2008/02/14: CIA-RDP84SO0928R000100010004-8
Table C-2
China: Emports of Chemical Commodities, f.o.b. (continued)
51271 Amine-function compounds
6
120
294
456
686
2,355
4,895
51272 Single or complex oxygen-function amino
compounds
730
3,664
1,297
5,164
6,736
17,281
16,754
51273 Quaternary ammonium salts and
hydroxides
296
516
895
693
890
1,176
1,107
51274 Amide-function compounds
33
898
1,158
1,642
4,389
7,795
8,929
51275 Imide-function compounds
142
1,414
1,566
925
2,549
5,763
5,482
51276 Nitrile-function compounds
36
683
486
42
2,734
2,532
1,141
51277 Diazo-, azo-, and azoxy-compounds
1
444
355
221
372
956
2,429
51278 Organic derivatives of hydrazine or
hydroxylamine
0
2
1
16
2
3
3
51279 Compounds with other nitrogen-functions
0
11
63
29
15
98
41
5128 Organo-inorganic and heterocyclic
compounds
2,461
24,596
18,269
27,842
51,091
73,687
96,242
51281 Organo-sulphur compounds
65
640
1,257
1,598
3,258
7,345
14,987
51283 Organo-mercury compounds
3
8
14
24
57
136
48
51284 Other organo-inorganic compounds
0
29
123
364
421
671
682
51285 Heterocyclic compounds
2,205
21,259
10,618
16,089
26,948
41,773
54,143
51286 Sulphonamides
187
2,660
6,255
9,749
20,284
23,495
26,090
51287 Sultones and sultams
0
0
1
18
124
267
293
5129 Other organic chemicals
499
316
847
841
1,791
2,151
3,086
51291 Enzymes
2
100
232
204
431
1,018
1,997
51292 Sugar, chemically pure, excluding sucrose,
glucose, and lactose
0
76
39
54
118
151
237
513 Inorganic chemicals: elements, oxides, and
halogen salts:
5131 Oxygen, nitrogen, hydrogen, rare gases
3
19
2
4
10
39
515
51313 Hydrogen and rare gases
3
19
0
0
10
39
515
5132 Chemical elements, NES
288
1,226
1,223
2,288
10,559
25,799
45,364
51321 Chlorine
0
1
17
19
52
278
34
51322 Other halogens
12
0
0
0
569
616
7
51323 Sulphur, sublimed or precipitated, and
collodial sulphur
37
74
147
145
266
244
1,456
51324 Metalloids NES
20
95
102
41
684
9,126
31,452
51325 Mercury
219
1,039
832
1,927
8,277
12,985
8,434
51326 Alkali, alkaline-earth, and other rare earth
metals
0
0
34
2
0
114
471
51327 Carbon black, and so forth
0
18
91
154
710.
2,436
3,509
5133 Inorganic acids and oxygen compounds of
nonmetals
659
3,004
2,307
2,110
3,101
5,133
9,449
51331 Hydrochloric acid and chlorosulphonic acid
18
20
5
16
48
301
433
51332 Sulphur dioxide
0
0
0
12
0
0
0
Approved For Release 2008/02/14: CIA-RDP84SO0928R000100010004-8
 Approved For Release 2008/02/14: CIA-RDP84SO0928ROO0100010004-8
Secret
Table C-2 (continued)
51333 Sulphuric acid; oleum 4
64
49
106
130
281
544
51334 Nitric acid; sulphonitric acids 3
22
2
3
31
56
171
51335 Phosphorus pentoxide and phosphoric acids 31
1,287
1,086
1,070
1,328
1,963
3,471
51336 Arsenic trioxide, pentoxide, and acids of 303
arsenic
953
321
27
60
105
87
51337 Boric oxide and boric acid 258
234
277
134
438
951
2,189
51339 Other inorganic acids and compounds of 42
nonmetals, metalloids
424
567
742
1,067
1,475
2,554
5134 Halogen and sulphur compounds of 3
nonmetals or metalloids
85
11
6
47
86
50
51341 Halides, and other compounds of nonmetals 0
or metalloids
46
0
0
23
62
28
541 Medicinal, pharmaceutical products:
5411 Provitamins and vitamins 192
1,484
1,935
2,733
4,134
18,168
16,489
5413 Antibiotics, penicillin, and streptomycin 343
3,760
5,535
7,444
17,139
41,674
41,251
5414 Vegetable akaloids, their salts and 10
derivatives
6,772
3,202
2,979
5,019
11,607
10,073
5415 Hormones 12
485
291
408
1,796
5,761
5,459
5416 Glycosides, glands and their extracts; sera, 271
and vaccines
1,956
2,312
4,956
8,514
10,555
12,292
54161 Glycosides, natural or reproduced by 19
synthesis
282
197
227
668
891
920
54162 Organo-therapeutic glands or other organs, 232
not powdered
1,581
2,115
3,904
6,242
7,575
9,122
54163 Bacterial products, sera, and vaccines 21
93
0
825
1,603
2,089
2,250
5417 Medicaments 8,688
35,539
42,234
49,696
63,000
77,935
81,899
5419 Pharmaceutical goods 2,307
8,797
9,868
11,521
13,451
17,946
22,243
54191 Wadding, gauze, bandages, and similar 2,256
articles
8,506
9,792
10,990
12,834
17,640
21,446
551 Essential oils, perfume, and flavor materials:
5511 Essential oils 14,227
21,599
33,572
33,162
47,065
56,484
46,941
5512 Synthetic perfume and flavor materials and 455
concentrates
1,031
780
719
1,312
1,856
2,180
55121 Terpenic byproducts of essential oils 176
73
82
0
11
30
18
55122 Concentrates of essential oils 0
2
1
0
27
28
28
55123 Mixtures of odoriferous substances 275
956
697
713
1,241
1,771
2,114
55124 Aqueous distillates and solutions of essential 4
oils
0
0
6
33
27
21
Approved For Release 2008/02/14: CIA-RDP84SO0928ROO0100010004-8
 Approved For Release 2008/02/14: CIA-RDP84SO0928R000100010004-8
Table C-2
China: Emports of Chemical Commodities, f.o.b. (continued)
553 Perfumery, cosmetics, and toilet preparations
(except soap):
554 Soap, cleansing and polishing preparations:
5541 Soaps
1,781
12,367
13,653
15,803
12,118
15,116
15,871
5542 Surface-acting agents and washing
preparations
917
4,683
4,406
5,287
6,820
11,034
10,726
5611 Nitrogenous fertilizer and fertilizer material
2
135
52
852
1,259
1,906
3,156
5612 Phosphatic fertilizers and materials
25
28
0
0
66
28
439
56129 Phosphatic fertilizer and fertilizer material
25
28
0
0
66
28
439
5613 Potassic fertilizer and fertilizer material
0
53
338
687
1,058
1,578
1,656
5619 Fertilizers, NES
2
0
25
2
23
0
131
5711 Propellent powders and other prepared
explosives
35
473
10
4
301
599
1,549
57112 Other prepared explosives
35
473
10
4
301
0
1,549
5712 Fuses, primers, and detonators
2
15
0
7
5
122
137
57121 Mining, blasting, and safety fuses
0
0
0
3
0
12
14
57122 Percussion and detonating caps
0
15
0
4
0
110
123
5713 Pyrotechnic articles
4,768
21,890
42,516
49,184
71,731
93,571
91,739
5714 Hunting and sporting ammunition
1
18
8
17
6
59
18
581 Plastic materials, regenerated cellulose, and
artificial resins:
5811 Condensation, polycondensation products
127
1,037
999
2,211
3,800
4,477
5,783
5812 Polymerisation and copolymerisation
products
795
1,536
2,648
4,366
35,128
53,896
39,116
5813 Regenerated cellulose, vulcanized fibers
102
253
275
837
1,915
3,330
3,780
58131 Vulcanised fiber
0
4
0
0
0
0
8
58132 Regenerated cellulose and chemical
derivatives
102
249
275
837
1,915
3,330
3,772
5819 Other artificial resins and plastic materials
108
896
3,143
4,207
6,959
11,070
12,456
58191 Hardened proteins
0
0
0
44
0
20
22
58192 Modified natural resins, ester gums, and so
forth
24
324
794
1,825
2,331
136
227
Secret 28
Approved For Release 2008/02/14: CIA-RDP84SO0928R000100010004-8
 Approved For Release 2008/02/14: CIA-RDP84SO0928ROO0100010004-8
Secret
Table C-2 (continued)
599 Chemical materials and products, NES:
5992 Disinfectants, insecticides, and fungicides
2,713
4,014
7,122
9,441
9,448
14,100
18,126
5995 Starches, insulin, gluten; albuminoidal
substances; glues
3,915
9,697
7,368
11,246
11,451
18,080
14,860
59951 Starches and insulin
918
4,049
2,322
678
1,995
4,545
3,668
59952 Gluten and gluten flour
0
3
46
7
3
10
7
59953 Casein, caseinates, derivatives, and casein
glues
1
15
35
47
33
20
12
59954 Albumins, albuminates, and derivatives
1,364
814
195
937
785
619
495
59955 Gelatin and gelatin derivatives, and so forth
1,422
4,256
4,054
8,953
7,529
11,065
9,285
59956 Peptones and other protein substances and
derivatives
22
3
43
140
186
940
396
59957 Dextrins, soluble or roasted starches and
starch glues
7
3
92
4
3
26
47
59959 Prepared glues, NES
181
552
581
480
917
855
949
5996 Wood and resin-based chemical products
37,003
62,408
63,275
56,106
86,319
104,789
120,549
59961 Tall oil
42
270
117
50
334
309
579
59962 Concentrated sulphite lye
0
7
57
157
153
46
27
59963 Spirits of turpentine, and so forth
4,745
3,301
3,119
3,828
6,838
6,818
6,220
59964 Rosin and resin acids, and so forth
32,163
58,720
59,957
52,006
78,832
97,497
113,617
59965 Wood tar, wood tar oils, and so forth
54
98
25
66
163
120
105
59966 Vegetable pitch and so forth
0
11
0
0
0
0
0
5997 Organic chemical products NES
269
1,376
709
805
1,855
3,497
6,906
59971 Artificial waxes and prepared waxes not
emulsified or containing solvents
8
43
107
293
1,096
548
216
59972 Artificial and collodial graphite
214
57
56
157
113
1,944
5,680
59973 Animal black, including ivory black and
bone black
0
3
8
6
7
85
28
59974 Prepared glazings and mordants
39
31
2
3
96
27
28
59975 Antiknock preparations, and so forth
1
1,058
367
265
293
461
483
59976 Prepared rubber accelerators
5
175
169
79
249
422
454
59977 Prepared culture media
0
0
0
0
0
7
3
59978 Charges for fire extinguishers
2
9
0
1
2
4
14
5999 Chemical products and preparations, NES
1,813
3,569
8,415
5,785
14,477
24,727
28,415
59991 Modeling pastes and dental impression
compounds
15
30
51
69
104
70
96
59992 Activated carbon and activated natural
mineral products
103
121
312
496
1,214
3,444
3,495
59993 Ferrocerium and other pyrophoric alloys
372
762
883
938
1,170
1,543
1,084
59994 Pickling preparations for metal surfaces,
fluxes, and so forth
1
5
16
0
1
56
40
59995 Composite varnish solvents and thinners
14
29
70
43
30
18
80
59999 Other chemical products and preparations,
NES
1,309
2,621
7,084
4,239
11,958
19,596
23,619
Approved For Release 2008/02/14: CIA-RDP84SO0928ROO0100010004-8
 Approved For Release 2008/02/14: CIA-RDP84SO0928R000100010004-8
Secret
Secret
Approved For Release 2008/02/14: CIA-RDP84SO0928R000100010004-8