China this decade, the paint run GDP?

China this decade, coatings and China's economy together, through the storm, both three trees to break the shackles, revenue first over ten billion paint king glory, but also the impact of the epidemic industry profits under the precipitous decline of the tragic, and to break a number of card neck technology, for the outbreak of the post-epidemic era to accumulate the pounds of strength.

China becomes the world's largest producer of paints

China is the second largest economy in the world and has become the largest engine of world economic growth. 2012-2021 decade also saw China's GDP share of global GDP rise from 11.4% to 18%. The contribution of China's economy to the world's economic growth has remained at around 30% overall.

GDP and the construction industry have been the barometer of the development of coatings. 2012 China's GDP reached 53.9 trillion yuan, and then it was at 6-8%, a high rate of development. 2020 the new crown epidemic outbreak, China's economic development was hampered, GDP still achieved 2.3% growth. 2021 the epidemic normalized, the fundamentals of China's long-term economic upturn remained unchanged, the economy recovered steadily and GDP reaches 114 trillion RMB.
In the decade 2012-2021, China's average GDP growth rate reaches 6.68%, far exceeding the average growth rate of about 3% in developed countries around the world. Without the new crown epidemic and the outbreak of the US-China trade war, China's average GDP growth rate for this decade would have been around 7%.

Thanks to the rapid development of China's economy in the past decade, Chinese paints have also caught the wind of China's rapid economic development and become the first major producer of paints in the world.

From 2012-2021, the average growth rate of China's GDP is 6.68%, and the average growth rate of China's paint production is 11.2%, and the paint production is outperforming the GDP, and China becomes the world's top paint producing country.

In the past ten years, stimulated by the rapid growth of China's economy at an average rate of 6.68%, the average growth rate of China's paint production reached 11.12%, which greatly exceeded the growth rate of GDP. Since 2011, when China's total paint production exceeded the 10 million ton mark, it has been in scud mode. It took only 6 years for China's total paint production to break through 20 million tons and only 4 years to break through 30 million tons.

The excessive pursuit of production has also formed overcapacity, which eventually led to price wars and a downward trend of paint prices and profits after 2016.

In the past ten years, only the output of Chinese paint has beaten the GDP, and the average growth rate of total revenue and total profit of 4.94% and 4.72% is much lower than the average growth rate of 6.68% of GDP. China's coatings such as the world's first by production pile up, the industry discourse is not the world's first, whenever the price increase tide comes, the industry profits will drop sharply.

It can be seen that China is the first big country in paint production, but the low added value and big but not strong has become the industry problem that needs to be solved urgently in the next decade.