The leadership competition between multinational giants and enterprises

Historically, the growth paths of European and American chemical giants are very consistent, that is, relying on strong technical accumulation and asset bases to build solid foundations to entry, then continue to widen and establish new boundaries through related diversification, and are committed to profit growth. Based on the local market, they are constantly looking for new development opportunities in high-growth emerging markets. From the past few decades, top multinational companies have gradually established considerable production capacity in emerging markets. In terms of the investment of giants like BASF and ExxonMobil in southern China, they still see emerging markets as an important means of breaking through their own growth limits. With the development and expansion of companies from oil and gas producing countries (Saudi Arabia, Brazil, etc.) and emerging market countries (China, India, Brazil, etc.), the global chemical industry competition pattern has undergone major changes.

 Compared with established chemical companies in Europe, America, and Japan, they can no longer establish their industry status through the technological innovation that has spanned hundreds of years. These companies have taken two different paths: companies from oil and gas producing countries have control over advantageous raw materials at the stage of high oil prices, and they focus on resource monetization; while companies from emerging market countries have priority to enter the most dynamic consumption market, they benefit from the rapid economic development in their area. From the perspective of the shaping of the current strategic boundary of the global chemical industry, participants in emerging markets are still staying at the basic petrochemical raw materials stage. In the initial stage of deep processing of petroleum and chemical industries such as synthetic rubber, multinational companies are constantly trying to explore more niche markets through research and development while controlling special chemical fields such as new chemical energy and new materials.