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Jiangsu Province cancels chemical orientation of 24 chemical industrial parks/zones

In early November 2020, Jiangsu Province issued the Notice of the Jiangsu Provincial Government on Strengthening Standardized Administration of Chemical Industrial Parks/Zones and Chemical Industry Concentration Areas in the Province. According to the notice, it will retain 14 chemical industrial parks/zones and 15 chemical industry concentration areas and cancel the chemical orientation of 24.


The above-mentioned 29 parks/zones and concentration areas have been renamed in generally to embody words like “new materials”, “technology” and “ecology” while abandoning or toning down the old ones “chemical” or “chemistry” etc. This is an indication of the government’s policy direction for upgrading the traditional chemical industry.


It’s noteworthy that cancelling the chemical orientation of chemical industrial parks/zones and concentration areas doesn’t mean that they should withdraw from the chemical industry. They are actually prohibited from increasing the quantity of new chemical manufacturing enterprises or allowing construction of new chemical production projects and capacity expansion for existing ones.


Those concentration areas losing their chemical orientation will be transformed into auxiliaries with the help of local governments and serve for warehousing and logistics etc.


Jiangsu has long been a competitive chemical manufacturing region in China constantly upgrading its chemical industry. Upon the release of the notice, those 29 chemical industrial parks/zones and concentration areas will enjoy related preferential policies provided by the government, and meanwhile they should undertake more responsibilities to safeguard the safety production in the parks/zones/concentration areas they are located in. In addition, any enterprise wanting to settle in any of the 29 parks/zones and concentration areas shall ensure that its investment in a single project is not less than USD0.2 billion (RMB1 billion)—entrance threshold has been heightened.


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