Shandong’s chlor-alkali industry reaches a consensus: to practice self-discipline to address excessive competition and work together to tackle risks

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The chlor-alkali industry in Shandong reaches a consensus: self-regulation to address excessive competition and jointly tackle risks July 29, 2025 In light of the severe situation of excessive competition within the chlor-alkali industry, the sector needs to establish more effective mechanisms for self-regulation and communication and coordination, in order to jointly deal with market and trade risks and safeguard the overall interests of the industry. ”This is the consensus reached at the 2025 Shandong Province Chlor-alkali Industry Mid-year Operational Benchmarking Exchange Meeting, which was held recently in Qingdao, Shandong. 　　Song Xiangdong, executive president of the Shandong Chlor-alkali Industry Association, pointed out that the chlor-alkali industry is currently affected by various factors, with intensified supply-demand tensions that severely impact its high-quality development. **With the central economic work conference calling for comprehensive measures to address \"competitive involution,\" and the revision of the Anti-Unfair Competition Law of the People’s Republic of China, the aim is to prevent inefficient price wars and waste of resources through the regulation of market behavior and policy guidance. The association will actively advocate for, guide, and regulate the industry to avoid harmful competition, and pursue a solution through a three-pronged strategy that combines timely policy responses, the use of financial tools, and industry self-discipline, in order to maintain a baseline for high-quality development. The association will continue to carry out exchange activities that involve bringing experts in and sending members out, and it will work to promote the development and implementation of industry standards related to the carbon footprint of products in the industrial chain as well as safety production technologies. By doing so, it aims to strengthen self-regulation in the market and foster high-quality development of new forms of productivity in Shandong’s chlor-alkali industry in the new era. 　　Liu Jianxin, deputy general manager of Shandong Haihua Chlor-alkali Resins Co., Ltd., called on the industry to pursue transformation toward higher added value and more advanced products in order to escape from vicious price-based competition. At the same time, it is necessary to utilize association platforms to strengthen regional coordination mechanisms, explore options such as signing long-term contracts, and turn competition into cooperation in order to achieve coordinated development across the entire industrial chain. 　　Guo Qing, a researcher on caustic soda at Zhongtai Futures, emphasized that \"competitive intensification\" suppresses social innovation and distorts the efficiency of resource allocation, resulting in significant waste of societal resources. To effectively address this issue, it is necessary to work together on both the supply and demand sides to achieve a higher level of dynamic balance in which demand drives supply while supply creates demand. At the same time, it is important to continue expanding open access to the international market in order to create new opportunities for foreign trade. On the other hand, it is necessary to start by strengthening industry self-discipline, leveraging the role of industry associations, and promoting lawful, fair, honest, legitimate, and orderly competition within the industry. By establishing industry standards and rules, market behavior can be regulated, a broad consensus can be reached, and vicious competition can be curbed. 　　“\"Discussion on the export of chlor-alkali products and industry self-discipline under the new international trade landscape\" became a new highlight of the conference’s thematic discussions. Shao Kun from the Information Department of the Shandong Chlor-alkali Association provided an in-depth analysis of the export situation of chlor-alkali products in China since the beginning of this year, as well as the impact that future policy changes will have on China’s exports. Shao Kun emphasized that, during this period of capacity reduction in the domestic market and restructuring of global trade, actively expanding product exports is a key strategic choice for chlor-alkali enterprises to address the structural challenges in the industry and achieve sustainable development. 　　Ma Liwen, deputy general manager of the Bincheng facility of Binhua Group and representative of the association’s governing body, said that in the current complex and volatile domestic and international market environment, unity and cooperation, information sharing, standardized operations, a focus on quality, and mutual benefit are the foundations for the sustainable development of the industry. He expressed the hope that the outcomes of this conference will be translated into concrete actions, and that the agreements reached will be turned into a driving force for development, so as to jointly address market and trade risks. 　　This conference was organized by the Shandong Chlor-alkali Industry Association, co-organized by Qingdao Mingyue Seaweed Biotechnology Health Group Co., Ltd., and hosted by Sway (Shandong) Business Consulting Co., Ltd.