Liu Xiaohua, a deputy to the National People’s Congress: Improve the technology-transfer mechanism, standardize market order, and promote high-quality development of the chemical industry.

BEIJING, March 9 (Xinhua) — During the 2026 sessions of the National People’s Congress and the Chinese People’s Political Consultative Conference, Liu Xiaohua, a deputy to the NPC and Party Secretary of the Anqing Petrochemical General Plant under Sinopec’s Anqing Branch, put forward proposals on two key issues: the commercialization of new chemical materials and the maintenance of orderly market practices in the industry. He stated that, given the persistent deep-seated problems of low-level competition within the sector that have yet to be fully resolved, it is imperative to adopt a dual-pronged approach—driving institutional and mechanism innovation while strengthening market regulation—in order to create a favorable environment for the high-quality development of the petroleum and petrochemical industry.

Regarding the improvement of the institutional mechanisms for translating research-and-development achievements in new chemical materials into practical applications, Liu Xiaohua emphasized that this constitutes the core hub connecting R&D with industrialization. In light of current challenges—including an imperfect policy framework, high conversion costs, and a shortage of specialized talent—he recommended first strengthening the targeted nature and coordination of policies. Specifically, detailed implementation rules for platform development should be formulated, technical standards and approval procedures standardized, and a multi-agency coordination mechanism established to streamline approval processes, thereby ensuring the efficient delivery of subsidies and tax incentives. At the same time, robust fault-tolerance and performance-assessment mechanisms should be put in place, with clear exemption clauses to alleviate enterprises’ concerns about trial-and-error, and long-term incentive schemes introduced to encourage greater investment. Furthermore, it is essential to address the bottlenecks of cost and talent by providing phased subsidies to reduce the tax burden, incorporating technology-transfer outcomes into talent-evaluation systems, and rigorously cracking down on infringement and piracy to effectively safeguard enterprises’ rights and interests. This comprehensive package of measures aims to unblock the chokepoints between the innovation chain and the industrial chain, thereby enhancing the industry’s core competitiveness.

If the commercialization of scientific and technological achievements is the key to unleashing endogenous momentum, then a well-regulated market order serves as the external safeguard for the healthy development of the industry. Liu Xiaohua proposed that efforts to strengthen market oversight in the chemical sector must be intensified to uphold normal competitive order. Although initial progress has been made in curbing cutthroat competition, challenges persist, including low capacity utilization rates for certain bulk, general-purpose products, redundant investment at low levels, and an underdeveloped self-regulatory mechanism within the industry. To address these issues, he recommended establishing a visual “Chemical Industry Capacity Early-Warning Platform,” imposing stringent environmental and energy assessments and restrictions on projects with severe overcapacity, and instituting a mechanism for tracing accountability to prevent blind investment. With regard to optimizing existing capacity, he advocated the creation of a nationwide, unified “Chemical Capacity Replacement Quota Trading Market,” leveraging financial incentives to encourage the exit of outdated capacity and thereby preventing the phenomenon of “bad money driving out good.” Finally, he stressed the need to foster a fair business environment by using big data to monitor abnormal price fluctuations, rigorously sanctioning unfair competitive practices, and promoting the establishment of an industry-wide “blacklist” system and a code of self-regulation.

Liu Xiaohua stated that, by leveraging the dual drivers of a refined technology-transfer mechanism and strengthened market regulation, it will be possible to effectively address the challenges facing industry development, propel the chemical sector toward higher-end and greener operations, and provide solid support for national energy security and high-quality economic development.

[Editor in Charge: Zhang Haozhe]