The European chemical manufacture is losing competition with China

The EU institutions are working on simplifications for the chemical manufacture and a plan to support its competitiveness, especially in relations with China. The European Commission presented a draft of this kind of action and deregulation in July. The European Parliament late adopted a package "One substance, 1 assessment" which aims to improve the safety assessment of the chemical substance and strengthen the cognition base on it. 1 of the objectives of the change is to strengthen the innovation of the sector.

– present we are specified a place in the planet where chemicals are checked in a very detailed way. Nowhere in the planet is this checked. It's about climate, and it's about making chemistry as transparent as possible so as not to poison the environment. – says Newseria Dariusz Joński, associate of the European Parliament from the Civic Coalition. – On the another hand, this cannot prolong the production and sales process, so we call for simplification of these procedures and the usage of data that are collected to make it even more competitive.

The fresh government aims to strengthen cooperation and consolidate technological and method work on chemicals within 4 EU agencies. cognition gained from assessments under 1 legal act (for example on biocidal products) can be reused for another (e.g. toys). As stressed by the European Commission, citizens, businesses and bodies will benefit from simplified and transparent access to information on chemicals and greater assurance in evaluations.

The rules besides supply for a common data platform on chemical hazards, their physicochemical properties, environmental presence, emissions, applications and sustainable development. Data on the levels of chemicals detected, among others, in blood samples or breast milk are besides to be systematically collected. In addition, it is besides mandatory to study investigation on chemicals.

The legislative package was approved by the Council of the European Union on 13 November and will enter into force 20 days after publication in the authoritative diary of the EU. The common data platform is expected to be established within the next 3 years.

The adopted SOA (One Substance 1 Assessment) is part of the wider Chemicals strategy for Sustainability initiative, a 2020 strategy for sustainable improvement in chemicals. It aims not only to improve the protection of citizens and the environment, but besides to stimulate innovation in this economical sector. Even more so, according to the data cited in the strategy by 2030, global production of chemicals will double compared to 2018. This makes EU chemicals government more important.

In July this year, the European Commission presented the long-awaited European Chemicals manufacture Action Plan, the Action Plan for the European Chemical Industry, and the Omnibus VI package to simplify chemicals legislation. This is to respond to the deteriorating competitive situation of the sector. The European chemical manufacture is the world's second largest chemical market. In 2023 it was worth more than 850 billion EUR: EU countries generated 655 billion EUR in turnover, while the remainder of the Old Continent was worth 207 billion EUR. China was the leader of the global marketplace with the sale of chemicals at EUR 2,237 trillion, according to Deloitte's study "The Future of the European Chemical Industry: affirmative Perspectives". Europe's share of the global marketplace has remained between 13 and 14 percent for a decade and was twice as advanced in 2008.

“To put it plainly, this manufacture needs to be simplified and further invested in it, as China, among others, did.” emphasises Dariusz Joński. – 20 years ago, the European chemical manufacture was stronger than Chinese in a 3:1 ratio. Today, it is China's European pursuit, among another things, due to besides much bureaucratic tightening, and on the another hand due to the prices of electricity, due to the fact that without the power of this manufacture there is no. These are 2 things we request to take care of.

Cefic (European Chemical manufacture Council) in the Chemical Trends study Q2 2025 study points out that the competitiveness of the European chemical sector is well below the 2014-2019 average. This is due to declining request and uncompetitive energy prices. This is peculiarly crucial for natural materials and petrochemical products, where China has a competitive advantage through large-scale production and low production costs.

Cefic reports that between January and June this year production in the chemical manufacture in EU associate States decreased by 2.4% compared to the same period a year earlier. China, on the another hand, saw an 8-percent increase. They stay the most crucial origin of chemical imports to the associate States (€17.1 billion).

– I am pleased that in the EP plenary we have heard, among another things, about the protection of respective industries, the simplification and adoption of a programme of support for enterprises for 2026, including key sectors, including chemistry. For good there is no another industry, neither automotive, nor ceramic, nor metal. This is the foundation of the European economy – says Dariusz Joński.

The chemical manufacture plan proposed by the EC emphasises the modernisation of the sector, with peculiar emphasis on support for energy transition and decarbonisation, marketplace creation for green products and innovation and simplification of the regulatory framework, while maintaining a advanced level of substance safety. The Commission is to implement an action plan for affordable energy without hold by applying taxation reductions and network tariffs. The guidelines for the compensation of indirect costs in the EU ETS in the manufacture are besides planned. 1 of the assumptions of the plan is besides the creation of an Alliance for Critical Chemicals.

In turn, the Omnibus VI package for the chemical manufacture proposed changes in the labelling of chemicals, approvals for the usage of certain substances in cosmetic products and registration of fertilising products. Implementation of the proposed measures is intended to save the manufacture at least EUR 363 million per year.