Unfortunately, the total domestic market demand is only 600,000 tons. With the market recovering, a dozen domestic manufacturers are making efforts to increase their production, and some areas have planned new acrylic fiber plants, following local interests. Such low-level redundant construction is worrisome. With accelerated economic globalization and the impending WTO entry, Chinese acrylic fiber manufacturers will face challenges from international acrylic fiber groups that they are ill prepared for. The industry also will not longer be protected after following WTO entry.
Product mix needs to be adjusted .
China s market for conventional acrylic fiber products is seriously saturated. Although the state has adopted a protective tariff much higher than the world average level and an import quota system, the total profits of China s acrylic fiber industry are far less than those made by one large overseas chemical fiber company. China s investment in technical innovation and new product development is pathetically meager. As a result, manufacturers have no capacity to produce the special fibers in great demand. According to industry sources, Japan s annual output of acrylic fibers amounts to 418,000 tons, equal to the total output of the China Petroleum Group and the China Petrochemicals Group.