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Li Yongwu made this remark to this reporter in the gap of “2008 China International Fine Chemicals Exhibition†co-sponsored by Net Sheng Baobao and the Chemical Industry Branch of China Council for the Promotion of International Trade. He said that the introduction of each policy may bring about both advantages and disadvantages. The problem now is to enlarge the profitability of the fuel tax, minimize the negative impact, and achieve a win-win situation for all parties.
When talking about the current difficulties faced by the domestic chemical industry, Li Yongwu pointed out that “the Chinese market is relatively large, the financial crisis has limited impact on the domestic market, and the country is continuously introducing policies. Therefore, the overall difficulty of chemical companies is temporary. Enterprises need to be confident in their current situation and deal with it seriously."
According to him, the China Petroleum and Chemical Industry Association is still constantly appealing to the central government. The central government is also considering a series of policies. For example, the chemical fertilizer reserve system related to the fertilizer industry may be adjusted in the future. "The current amount of reserves is not enough and the mode of reserve is not reasonable."
The reporter also learned from the China Agricultural Assets Circulation Association that just last month, the report on the establishment of a central chemical fertilizer reserve system by the All-China Federation of Supply and Marketing Cooperatives was completed and will be reported to the State Council. The report proposes to replace the current national off-season commercial reserve system for chemical fertilizers with a central chemical fertilizer reserve system.
According to the report, from the effect of implementation for more than four years, due to the principle of corporate reserve, government interest subsidy, market operation, and self-financing in the off-season business reserve system for chemical fertilizers, the characteristics of business operation and marketization are obvious. In addition, centralized tendering and centralized purchasing and storage methods that are directly linked to the company’s own interests are also likely to cause abnormal fluctuations in the market. Encountered this huge fluctuation in the fertilizer market this year, commercial reserves can not effectively inhibit the rise in fertilizer prices. Central fertilizer reserves can not only ensure sufficient supply of fertilizers, but also the government can control fertilizer prices. In addition, the establishment of a centralized chemical fertilizer reserve system can also stabilize the market expectations of production companies.
However, the proposal to establish a central fertilizer reserve system has also been opposed by some people. Some people think that the central fertilizer reserve put forward in this report has a strong planned economy and is inconsistent with the country's direction to adhere to market-oriented reforms.
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