China's chemical industry will be affected by the EU REACH system

The training course for the European Union’s response to the EU REACH system held in Fuzhou, Fujian Province on March 23 was learned that the European Union’s REACH for chemicals registration, assessment, authorization and restriction (REACH), to be formally implemented on June 1 this year, covers a wide range of issues. The huge impact will cause three major impacts on China's chemical, textile, and electrical and mechanical industries.
Relevant experts pointed out in the training class that the implementation of the EU REACH system is beneficial to human health and environmental protection as well as the regulation of chemical production and use, but at the same time it will also have a serious negative impact on the export of related industries in China, mainly including :
The first is direct impact on exports of chemical products and their downstream related products. After the implementation of the REACH system, China's export of chemical products will face problems of registration, evaluation, and authorization. It is expected that the increased costs will increase the export cost of enterprises by more than 5%. What is even more serious is that the chain reaction caused by REACH regulations, such as the United States has launched a legislative proposal, Japan announced to establish a commodity inspection and registration system, etc., the rapid spread of green barriers, will make China's chemical and related products export obstacles extended.
Second, indirectly led to an increase in the cost of imported products from the European Union, affecting the development of downstream related industries. The European Union is an important source of petroleum and chemical products in China. After the implementation of the REACH Regulations, chemical manufacturers or exporters in the European Union will inevitably charge high registration and evaluation costs to product costs, thus increasing export prices. According to industry estimates, this will increase the average price of chemicals imported from the European Union by more than 6%, which will not only affect the development of China's chemical industry, but will also increase the cost of related downstream products such as textiles, pharmaceuticals, light industry, electronics, and automobiles in China.
The third is the impact on human health and environmental pollution products. The implementation of new EU regulations will generally increase the production costs of products. Those products that were originally of high cost, low profits, pollute the environment, endanger human health, and their production areas may be transferred from the EU to the Third World, and China will also face such The impact of the transfer was adversely affected.

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