China’s bio economy and chemicals industry update
This country outlook is part of a short series of introducing priority sectors that Team Finland China has chosen for 2022. Team Finland China is a network of public actors and Finnish business chambers in China. The network promotes Finland and its interests abroad: the internationalization of Finnish enterprises, investments in Finland, and the country brand. In total, there are nine focus areas, in which Team Finland actors proactively plan their activities, to help Finnish companies to enter China and grow in Chinese market. Team Finland China priority sectors for 2022 are 1) ICT, 2) food and agro, 3) health technology, 4) energy, 5) bio economy, chemicals and built environment, 6) metal and machinery, 7) maritime, 8) education (incl. research and talent boost) and 9) winter sports.
China National Development and Reform Commission published the 14th Five-Year Plan for Bio economy Development in May 2022. The outline of the plan states that the target is to promote integrated innovation in biotechnology and information technology, accelerate the development of biomedicine, bio breeding, biomaterials, bio-energy and other industries, and make the bio-economy bigger and stronger.
Bio economy is attracting increasing attention as transformation from a fossil-based economy to a greener, more bio-based economy, accelerates in China. With stronger focus on sustainability, the demand from both industries and consumers for products from renewable and circular resources, including wood and textile fibers is expected to grow. Waste solutions including biomass, plastic and water also have a promising market.
With long-standing Finnish expertise in bio economy, the evolving market in China continues to offer opportunities for companies. In addition, new requirements will accelerate the adoption of circular economy mechanisms and bring opportunities for collaboration in short- and longer-term perspective.
In addition, the traditional wood subsector is expected to remain strong in long term. China has been the major global driving force of the wood products demand in the past decade, and it relies on overseas imports of round wood and wood products even as the production has increased domestically. Besides, China's forest area ranks fifth in the world, and it is one of the countries with highest industrial round wood harvest volume. In long term, the Finnish smart forestry industry is potential in China as well. Future forest industry trends remain positively driven by mega trends that support use of wood-based products.
Business Finland in Shanghai
Consulate General of Finland
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