Rubber industry: Focus on green, intelligent, high-end development and internationalization

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“During the 14th Five-Year Plan period, China’s rubber industry developed in a relatively stable manner, achieving significant progress in terms of industrial scale, technological innovation, structural transformation, and internationalization. 　　First is the expansion of the industry scale. Compared to 2019, in 2024 China’s rubber industry saw a 62.8% increase in profits; the number of rubber product manufacturers above a certain scale increased by 26.3%, industry revenue rose by 18%, export values increased by 40.2%, and the number of radial tires increased by 36.7%. Second, progress has been made in technological innovation. Bio-based rubber offers significant energy-saving and carbon-reduction benefits, with steam vulcanization machines being replaced by electric vulcanization machines, among others. Third, industrial upgrading is advancing at a faster pace. Mid-to-low-end products are transitioning toward high-end products, while the rubber industry is moving in the direction of greener and more intelligent practices. Fourth, the pace of internationalization is accelerating. Rubber industry companies are going abroad to set up factories, actively adapting to the global market, with their export volumes continuing to increase. 　　Following a period of rapid economic growth, the biggest challenge facing China’s rubber industry at present is excessive capacity expansion, prominent structural issues with mid- and low-end products, intensifying industry competition, severe \"involution,\" and volatile industry profits. As the flagship product of the rubber industry, tires account for over 50% of its exports. The impact of recent international anti-dumping and countervailing measures has placed significant pressure and challenges on China’s rubber industry, particularly the tire sector; the entire supply chain, including natural rubber, synthetic rubber, additives, carbon black, and steel cords, has also been affected. Furthermore, in high-end rubber sectors such as military and medical applications, China is highly dependent on imports of natural rubber, and there are technical barriers to the production of special synthetic rubbers. 　　Given the current situation in the industry, during the 15th Five-Year Plan period, China’s rubber industry needs to further clarify its development direction and path, moving toward greener and lower-carbon practices, as well as toward intelligence, high-end development, and internationalization. Specifically, the following four points need to be addressed. 　　First, promote the green and low-carbon transformation of the industry. “The introduction of the \"dual carbon\" goals, along with the implementation of international policies such as the EU Carbon Border Adjustment Mechanism, has imposed higher requirements on rubber-related products, including natural rubber. This requires rubber companies to attach great importance to the implementation of ESG (environmental, social, and governance) principles, to promote a green and low-carbon transformation across the entire supply chain, to proactively meet domestic and international policy requirements, and to drive sustainable and high-quality development in the industry. 　　Second, accelerate the intelligent upgrading of the entire industrial chain. On the one hand, it is necessary to drive the transformation of the production side toward automation and intelligence by introducing technologies such as intelligent equipment and digital twins, in order to achieve precise control and efficient coordination throughout the entire production process of rubber products. On the other hand, focus should be placed on innovative developments in product intelligence, in line with the trends of electrification, connectivity, and automation in the automotive industry. Efforts should be made to develop high-end products such as intelligent tires, as well as intelligent rubber products capable of sensing road surface hardness and transmitting data, thereby enhancing their compatibility with the control systems of end-use equipment. At the same time, enterprises are encouraged to apply AI technology in key areas such as formula development and structural design, and to use data modeling and intelligent analysis techniques to improve R&D efficiency, thereby establishing technical barriers and competitive advantages for the rubber industry through intelligent transformation across the entire value chain. 　　Third, make every effort to promote the high-end development of the industry. The focus is on increasing the proportion of high-end products made from basic raw materials such as natural rubber and synthetic rubber, in order to advance the entire industrial chain toward higher-value segments. Strengthen collaboration between upstream and downstream entities in the rubber industry, promote deep integration across all stages of the industrial chain as well as cross-sectoral integration among industry, academia, research institutions, and practical applications, and encourage close cooperation between enterprises, universities, and research institutions in addressing key technical challenges. Industry associations will establish innovation collaboration platforms to facilitate the integration of innovative resources and the transformation of research outcomes. Through close integration of the industrial chain and the innovation chain, they aim to enhance the core competitiveness of China’s rubber industry as well as its global influence, thereby pushing the industry toward a stage of higher-quality development. 　　Fourth, firmly advance international expansion and brand building. In the face of a complex international environment, the rubber industry must proactively break through barriers, drive enterprises toward internationalization, establish a global development framework, and enhance its ability to withstand external risks. At the same time, it is necessary to focus on enhancing product value as a core goal, prioritize improvements in product quality, strengthen product competitiveness through continuous research and development, and strive to build independent brand identities. It is necessary to break away from traditional production and operation models, integrate service concepts deeply into the entire product lifecycle, create Chinese brands that enjoy international recognition and a distinct identity, and make the transition from \"product export\" to \"brand recognition\".