China’s Pesticide Import and Export Situation in 2017 and Prospects for 2018

　　In recent years, China has… Pesticide The industry continues to grow rapidly, Pesticide The product’s competitiveness in the international market continues to strengthen, thereby promoting… Pesticide The rapid development of import and export trade. To further promote China’s… Pesticide Import and export trade: This article summarizes China’s performance in 2017. Pesticide The import and export trade situation, analyzing the factors influencing China’s… Pesticide The relevant factors affecting import and export trade, with a outlook on China’s situation in 2018. Pesticide Trends in import and export trade, proposing measures to promote China’s… Pesticide Opinions and suggestions on the development of import and export trade.
　　1 In 2017, China Pesticide Import and export situation
　　It is divided into an overview of imports and exports, export performance, and import performance.
　　1.1 In 2017, China Pesticide Overall Import and Export Situation
　　In 2017, China… Pesticide The total value of imports and exports reached US$7.171 billion, up 18.6% year on year; the total trade volume amounted to 1.5084 million tonnes, an increase of 6.9% compared with the same period last year. The trade surplus stood at US$6.35 billion, up 22.4% year on year.
　　 Pesticide After two consecutive years of decline, imports and exports have reversed the downward trend, achieving growth in both volume and value. Moreover, the growth rate of trade value has significantly outpaced that of trade volume, signaling a favorable momentum.
　　 Pesticide The growth rate of imports and exports exceeded the national average for goods trade by 4.4 percentage points. According to data released by the General Administration of Customs, in 2017 China’s total value of goods trade—imports and exports—reached RMB 27.79 trillion, up 14.2% year on year; in 2017, China… Pesticide The total value of trade imports and exports reached US$7.171 billion, up 18.6% year on year. However, China… Pesticide The total value of trade imports and exports accounted for only 0.025% of China’s overall goods trade value.
　　1.2 In 2017, China Pesticide Export situation
　　Our country Pesticide The export value reached US$6.76 billion, up 20.4% year on year; the export volume stood at 1.4676 million tonnes, an increase of 6.9% compared with the same period last year. The growth rate of export value was nearly three times that of export volume, and China… Pesticide Export trade is shifting from a traditional quantity‑driven growth model to one driven by quality and efficiency. In 2017, China… Pesticide Export volume accounts for Pesticide 97.3% of the total import and export volume, Pesticide The export value accounts for Pesticide 94.3% of the total import and export value, China Pesticide The pattern of imports and exports, with exports accounting for the majority, has remained unchanged.
　　1.2.1 Export Pesticide type of
　　In 2017, China… Pesticide The export value of active pharmaceutical ingredients was US$3.806 billion, accounting for 56.3% of the total export value. Pesticide The export value of pharmaceutical preparations was US$2.954 billion, accounting for 43.7% of the total export value; China Pesticide The pattern of exports being dominated by technical-grade active ingredients has remained unchanged. However, from 2011 to 2017, Pesticide The share of the export value of technical-grade active ingredients declined from 63.2% to 56.3%. Pesticide The share of formulation exports rose from 36.8% to 43.7%. Pesticide The gap in the share of export value between technical-grade active ingredients and formulated products narrowed from 26.4 percentage points to 16.2 percentage points, reflecting a marked downward trend. In 2017, China… Pesticide The export value of technical-grade active ingredients increased by 18.6% year on year, while the export value of formulated products rose by 22.8% year on year. Pesticide The growth trend of formulated products has become even more pronounced, and the export landscape—long dominated by active‑ingredient exports—is undergoing a transformation. China… Pesticide The structure of exported products has gradually become more rational. In 2017, China… Pesticide The volume of finished pharmaceutical products exported reached 961,300 tonnes, accounting for 65.5% of the total export volume. Pesticide The volume of technical-grade active ingredient exports reached 506,300 tons, accounting for 34.5% of the total export volume. Pesticide The volume of formulated product exports exceeds that of active ingredient exports, with the share of formulated product exports 30 percentage points higher than that of active ingredient exports, in China. Pesticide The role of exporters is shifting from raw-material suppliers to manufacturers of finished products.
　　1.2.2 Export Pesticide of the category
　　Herbicides are a major export product of China. Pesticide , accounting for more than half of the total export value. Herbicide exports totaled US$3.679 billion, representing 54.4% of the overall export value. Insecticide exports amounted to US$1.905 billion, or 28.2% of the total. Fungicide exports reached US$1.034 billion, making up 15.3% of the total. Plant growth regulator exports stood at US$139 million, accounting for 2.1% of the total. By category, Pesticide The export growth trends are as follows: plant growth regulators posted the fastest increase, at 37.5%, though their base was relatively low, with growth driven primarily by volume. Insecticides ranked second, with a 26.8% rise. Herbicides came in third, up 21.0%. Fungicides grew by 6.8%. By category… Pesticide The average export prices are as follows: herbicides have remained at low levels, with an average price of USD 3.56 per kilogram in 2017, showing a slight increase. Insecticide prices have risen, averaging USD 6.99 per kilogram, and currently exhibit the fastest growth rate at 21.8%, indicating an improving trend in the international competitiveness of China’s insecticide products. Fungicide prices remain the highest, at an average of USD 7.65 per kilogram, with a price increase of 7.7%, which is lower than the 21.8% growth seen in insecticides and the 11.8% rise in herbicides. Plant growth regulator prices initially increased before declining, with an average of USD 5.24 per kilogram, now broadly stable.
　　1.2.3 Export Pesticide the destination
　　Asia is China’s largest market, with exports totaling US$2.108 billion, accounting for 31.2% of the country’s total export value. Next is the South American market, with exports of US$1.800 billion, representing 26.6% of the total. North America recorded exports of US$987 million, or 14.6% of the total; Europe posted US$819 million, equivalent to 12.1%; Africa reported US$665 million, making up 9.8%; and Oceania registered US$380 million, accounting for 5.6%. Together, Asia and South America account for 57.8% of total exports, with growth rates of 19.4% and 22.1%, respectively. North America and Africa are among the fastest‑growing regions, expanding at 35.1% and 31.6%, respectively. Europe’s exports grew by 11.4%, but its export volume declined by 2.3%. In Oceania, both export value and volume fell, with a 5.9% drop in value and a 14.5% decline in volume. From 2011 to 2017, the share of traditional Asian markets gradually decreased as new markets were developed, falling from 35.5% to 31.2%—a reduction of 4.3 percentage points. Meanwhile, the share of the South American market rose steadily amid the development of emerging markets, increasing from 22.9% to 26.6%—an expansion of nearly 3.7 percentage points. North America’s share grew by 2.5 percentage points, while Europe’s declined by 1.3 percentage points; Africa and Oceania remained broadly stable.
　　1.2.4 Export Pesticide of the enterprise
　　Private enterprises have become China’s… Pesticide The private sector remains the dominant force in exports, consistently accounting for more than 50% of total export value. In 2017, private enterprises recorded US$3.866 billion in exports, representing 57.2%; foreign-invested enterprises reported US$1.623 billion, or 24.0%; state-owned enterprises accounted for US$1.044 billion, or 15.4%; and collective enterprises contributed US$227 million, or 3.4%. From 2011 to 2017, the shares of private and foreign-invested enterprises increased by 3.4 and 7.4 percentage points, respectively, while the shares of state-owned and collective enterprises declined by 9.4 and 1.4 percentage points, respectively.
　　1.3 In 2017, China Pesticide Import situation
　　2017 Pesticide The import value totaled US$411 million, down 4.1% year on year; the import volume was 40,700 tonnes, up 4.1% year on year. Imports… Pesticide An increase in quantity indicates imports. Pesticide Relatively domestic Pesticide Highly competitive, imported Pesticide Accounting for our country Pesticide Market share is trending upward rapidly; the decline in import value indicates that imports… Pesticide The average price has declined, imports Pesticide In our country Pesticide Market competition is becoming increasingly fierce.
　　1.3.1 Import Pesticide type of
　　With our country Pesticide By contrast, exports are dominated by technical-grade active ingredients; in China, Pesticide Imports are dominated by finished dosage forms, which account for approximately 80% of total imports. In 2017, the value of imported finished dosage forms reached US$320 million, representing 78.5% of the total import value. The value of imported active pharmaceutical ingredients (APIs) was US$90 million, accounting for 21.6% of the total import value.
　　1.3.2 Imports Pesticide of the category
　　The fungicide is imported. Pesticide the main categories. In 2017, imports of fungicides totaled US$179 million, accounting for 43.7%; insecticides amounted to US$124 million, or 30.2%; and herbicides reached US$98 million, representing 23.9%. From 2011 to 2017, the share of fungicides increased by 10 percentage points, while that of insecticides declined by 3 percentage points and herbicides by 7 percentage points, imports Pesticide The category has shifted from herbicides and insecticides to fungicides.
　　1.3.3 Imports Pesticide Place of origin
　　2017 imports Pesticide The main sources are Asia, with imports totaling US$245 million, accounting for 59.6%; followed by Europe, with US$92 million, or 22.4%; and North America, with US$51 million, or 12.3%. Imports Pesticide The source has shifted from developed regions such as Europe and North America to Asia. Between 2011 and 2017, Asia’s share of global imports increased by 11 percentage points, while Europe’s share declined by 14 percentage points and North America’s fell by nearly 1 percentage point.
　　2 Impact on China Pesticide Factors of import and export trade
　　2.1 International Political and Economic Environment
　　International organizations such as the International Monetary Fund and the OECD have revised upward their forecasts for global economic growth in 2018. The world economy is experiencing a moderate recovery, with a marked acceleration in the pace of international trade. According to statistics from the World Trade Organization, this year the combined year-on-year growth rate of merchandise exports among the world’s major economies has exceeded double digits.
　　2.2 International Agrochemical Market Environment
　　In recent years, the global agrochemical industry seed The market has undergone continuous consolidation and transformation, with three major global M&A deals in the agricultural sector: China National Chemical Corporation’s acquisition of Syngenta, the merger of DuPont and Dow to form DowDuPont, and Bayer’s acquisition of Monsanto. Among the six largest multinational agrochemical companies worldwide, five have experienced significant restructuring, reshaping the international agrochemical landscape and… seed The market will become further fragmented, which will severely impact our country. Pesticide Import and export trade.
　　2.3 Country Pesticide Management Policy
　　The newly revised “ in June 2017 Pesticide With the implementation of the Regulations, the Ministry of Agriculture and Rural Affairs has assumed the responsibilities previously held by the former State Administration for Quality Supervision, Inspection and Quarantine, the Ministry of Industry and Information Technology, and the State Administration for Industry and Commerce, among others. Pesticide Functions such as production and market regulation. To strengthen… Pesticide Management, ensure Pesticide Quality and safety: The Ministry of Agriculture and Rural Affairs has successively promulgated and implemented the “ Pesticide Registration Management Measures》《 Pesticide Administrative Measures for Production Licensing Pesticide Measures for the Administration of Business Licenses》《 Pesticide Administrative Measures for Registration Trials Pesticide Measures for the Administration of Labels and Instructions for Use Pesticide A series of supporting regulations, including the “Regulations on Registration Requirements,” have been implemented, thereby enhancing… Pesticide The threshold for manufacturing enterprises has been established. Pesticide The threshold for running a business has risen. Pesticide The safety threshold for products has been raised. Pesticide The severity of penalties for unlawful acts will be further strengthened to ensure a cleaner environment. Pesticide The industry’s operating environment.
　　2.4 National Environmental Protection Policy
　　The CPC Central Committee’s “Plan for Deepening Reform of Party and State Institutions” established the Ministry of Ecology and Environment, implemented the strictest system of ecological and environmental protection, fostered green modes of development and lifestyles, and focused on addressing pressing environmental issues. Consequently, regularized and institutionalized mechanisms such as the central environmental inspection will become even more stringent, thereby advancing China’s… Pesticide The industry’s transformation and rebirth.
　　2.5 Country Pesticide Tax policy
　　The 2009 Edition of the Provisional Regulations on Value-Added Tax stipulates that Pesticide The value-added tax rate is 13%. According to the Ministry of Finance and the State Taxation Administration’s Notice No. 37 [2017] on Policies Related to the Simplification of VAT Rates, effective July 1, 2017, the VAT rate structure was streamlined by abolishing the 13% rate and uniformly adjusting it to 11%. At present… Pesticide The VAT refund rate for the active ingredient is 11%: 11% tax is levied and 11% is refunded. Pesticide The formulation offers an 11% discount on the listed price, compared to the previous… Pesticide Compared with the 13% tax on raw materials and the 9% rebate, and the 13% tax on finished products with a 5% rebate, the effective tax burden has been significantly reduced.
　　2.6 The National “Belt and Road” Initiative
　　The implementation of China’s Belt and Road Initiative in the agricultural sector presents a major opportunity for the country to transform and upgrade its agriculture and to lead global agricultural development. China’s agricultural “going global” strategy will drive China… Pesticide “Going global” by expanding into markets along the Belt and Road countries. In addition, China… Pesticide High quality at an affordable price, sold in 182 countries and regions worldwide, China. Pesticide “Going global” will also help Chinese agriculture expand overseas.
　　3 In 2018, China Pesticide Import and Export Outlook
　　In 2018, China Pesticide Import and export trade will continue to maintain a growth trend, with the growth rate expected to exceed double digits. The main reasons are:
　　3.1 The increasing global demand for agricultural production will drive Pesticide Import and export trade
　　The ongoing global population growth, changes in dietary patterns, and the demand for bioenergy will further drive food demand. Pesticide It is an essential agricultural input, playing an irreplaceable role in ensuring agricultural production safety and boosting grain yields, particularly in the cultivation of genetically modified crops. Moreover, with the advancement of modern agriculture, agricultural production has become increasingly sophisticated and precise. Pesticide Usage will also become more refined.
　　3.2 Domestic Pesticide A decline in market demand will facilitate Pesticide Import and export trade
　　Our country is Pesticide A major producer, with an annual output of 1.3 million tons, in the domestic agricultural sector. Pesticide With usage at only around 300,000 tons, nearly 1 million tons of… Pesticide It needs to be absorbed through import and export trade. Moreover, in order to alleviate the pressure of non-point source pollution in agriculture, in 2015 China’s Ministry of Agriculture and Rural Affairs launched… Pesticide Zero-Growth Initiative for Usage.
　　3.3   Pesticide Enhanced import and export services will promote Pesticide Import and export trade
　　Our country Pesticide The administrative authorities are actively strengthening… Pesticide International exchanges, such as those recently undertaken by the Ministry of Agriculture and Rural Affairs Pesticide The Inspection Institute and the Vietnam Plant Protection Department signed the “China–Vietnam” Pesticide “Memorandum on the Management of Technical Cooperation,” and hosted events for countries along the Belt and Road. Pesticide Management Policy Talent Training Program, hosted by the Food and Agriculture Organization of the United Nations. Pesticide Management Toolkit Training Course, in collaboration with Canada, the United States, the United Kingdom, Australia, Vietnam, Turkey, Cambodia, Pakistan, Myanmar, Ukraine, and others. Pesticide Officials and technical experts from the administrative authorities engaged in exchanges, for our country… Pesticide Go global to foster a favorable international trade environment; in addition, collaborate with the General Administration of Customs, the National Port Administration Office, and other relevant authorities to launch the International Trade Single Window application system. Pesticide The import‑export registration management release notice has greatly facilitated… Pesticide Import and export trade.
　　4 Relevant Opinions and Suggestions
　　4.1 Strengthen Government Guidance
　　Drawing on the practices of countries such as India, we will conduct research and introduce measures intended solely for use abroad. Pesticide Management-related regulations; research Pesticide Tax policy, introduced Pesticide A tax rebate policy that ensures consistency between the active ingredient and the formulated product has been introduced for biologicals. Pesticide Tariff and value-added tax preferential policies.
　　4.2 Strengthening Industry Self-Regulation
　　Reasonably manage production capacity to prevent a rush of new projects that leads to overcapacity and to avoid low‑price competition that stifles future growth; encourage enterprises to pursue mergers and reorganizations to absorb existing capacity, thereby preventing redundant investment and resource waste.
　　4.3 Encouraging Corporate Innovation
　　Encourage enterprises to pursue technological innovation, develop and produce products with independent intellectual property rights, upgrade production processes, enhance product quality, reduce manufacturing costs, and minimize the generation of the “three wastes.” Promote the formulation of suitable dosage forms, improve application efficiency, and mitigate non-point source pollution; build national brands and strengthen international competitiveness.

Source: Pesticide Inspection Institute, Ministry of Agriculture and Rural Affairs