Although the political tension has prompted other companies to re -evaluate the risk exposure in China, US multinational companies Exxon Mobil is promoting a petrochemical project that is considered a strategic cornerstone in China and a billions of dollars.
Bloomberg News on Thursday (June 1) quoted anonymous insiders reported that ExxonMobil's executives went to Huizhou, China many times this year to check the project's progress.S & P said globally, the project is the largest of the dozen new ethylene projects developed by major companies in China.Six people participating in the project said the design of the project allowed expansion on the basis of initially.
The return on the world's fastest -growing petrochemical products is to occupy an important market share. The market provides plastic, resin and fiber for China's manufacturing industry to create daily consumer products that eventually enter global families.However, issues such as China and Russia's friendship, spy charges, and Taiwan policy have made US -China diplomatic relations tense and exacerbated the strategic risks of investing in petrochemical products.
ExMobil's investment in new facilities is in sharp comparison with other companies' actions. American companies Apple, Nike, and Adidas, as well as automotive component manufacturers.Reduce dependence on China's supply chain.
A survey released by the American Chamber of Commerce in April shows that many US executives have become more and more pessimistic about the relationship between Washington and Beijing.
Nikhil Celly, a professor of international commercial professor at the University of Houston, said: "As the relationship between the two parties becomes more opposite, business emotions must have deteriorated. Almost every company in the past said that China was a good place for investment.But now they will be more cautious, especially for future investment. "
Nevertheless, Exxon Mobil still has a strong motivation to promote investment in China.The company believes that the demand for petrochemical products will far exceed oil, and it is expected that the demand for oil oil by 2050 will basically be flat.
Chemicals such as ethylene and polyacryne are part of plastic bottle, food packaging and medical equipment, and it is difficult to replace it with low -carbon products.Exxon Mobil estimates that from 2017 to 2030, global chemical demand will increase by 42%, while gasoline demand will only increase by 5%.
China is in the center of this explosive growth.Although the strict crown disease prevention policy is weak after relaxing the economic rebound, in the long run, China's economic growth is expected to surpass the United States or Europe, thereby supporting the rapidly developing country's demand for plastic with a rapidly developing population with a population of 1.4 billion.China also occupies nearly one -third of the global manufacturing industry.
The chemical complex called "China No. 1" (China 1 "(China 1) is located in Huizhou, Guangdong Province, and is planned to be put into operation in 2025.ExxonMobil will also establish a local R & D center in the local area. This is the company's first R & D center with pilot factories outside North America and is exploring the potential of carbon capture.
