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March 12, 2009, 11:24 – China Chemical Industry News. As a new energy product, dimethyl ether is currently facing difficulties in sales and increasing cost pressures; half of the dimethyl ether production facilities have stopped operating, with many others operating at reduced capacity or on a partial basis. Therefore, there are growing calls for financial and policy support to be provided for the development of new applications for this substance. China currently has a total production capacity for dimethyl ether from projects that have been completed or are under construction of over 10 million tons, accounting for more than 90% of the world’s total capacity, making it the largest producer of dimethyl ether in the world. Applications in the civilian gas sector account for over 90% of China’s total dimethyl ether consumption. According to a survey conducted by the China Petroleum and Chemical Industry Association in December 2008, approximately 40.3% of dimethyl ether production facilities across the country were shut down, while 45.8% were operating at reduced capacity or on a partial scale. Industry experts point out that the disconnect between dimethyl ether application technologies and the development of downstream products and corporate needs is the main reason why the exploration of new application areas remains at the theoretical and laboratory stages. On the one hand, dimethyl ether companies lack advanced application technologies and suitable downstream products ； On the other hand, research activities in some scientific institutions and universities are facing funding difficulties. Under the premise of rational investment, dimethyl ether companies must step out of their current difficulties by intensifying market development in downstream application areas and seeking new ones. Therefore, some dimethyl ether producers suggest that **significant investments are being made to stabilize the market; given the strategic value of dimethyl ether as a new energy product, financial and policy support should be provided for the development of new applications for it.**