From May 1st, a number of chemical industry policies at home and abroad have been implemented.
Starting from May 1, 2026, a series of policies in the chemical industry between China and the European Union have been officially implemented. These policies cover three major areas: upgrading of safety supervision, regulation of key material exports, and compliance with chemical classification. They will have a profound impact on the production, trade, and compliance costs of the global chemical industry chain.
Domestically: Safety regulations for hazardous chemicals are implemented simultaneously with the control of sulfuric acid exports.
On May 1st, China's first "Dangerous Chemicals Safety Law" came into effect, replacing the "Regulations on the Safety Management of Dangerous Chemicals" that had been in force for over a decade. This marks the entry of dangerous chemicals regulation into a new stage of governance at the legal level.
Implementation date: May 1, 2026 (replacing the 2013 revised "Regulations on the Safety Management of Hazardous Chemicals")
Key points:
It consists of 10 chapters and 127 articles, covering the entire chain of safety management (planning, production, storage, use, operation, transportation, and emergency response).
Strengthening safety in chemical industrial parks: Clearly define the mandatory requirements such as the establishment and recognition of the park, closed management, and intelligent control platforms.
Toxic chemicals are subject to double-person receipt and dispatch, as well as double-person custody. The entire process of purchase and sale is traceable.
The penalties have been significantly increased: the maximum fine for an entity is 10 million yuan, and for an individual, it is 1 million yuan.
On the same day, the joint policy of the Ministry of Commerce and the General Administration of Customs on suspending the export of ordinary sulfuric acid came into effect. The implementation period was from May 1st to December 31st.
According to the policy, China will completely suspend the export of ordinary industrial sulfuric acid and by-product sulfuric acid from smelting operations. These will only be used for the production of electronic-grade high-purity sulfuric acid for semiconductor and display panel cleaning and etching processes. With special approval, a small amount of exports will be allowed. China is the world's largest producer and exporter of sulfuric acid, with production accounting for over 40% of the global total. This control measures cover approximately 95% of the sulfuric acid exports, aiming to prioritize the supply of key areas such as domestic spring plowing of phosphate fertilizers and the preparation of raw materials for new energy batteries. At the same time, it aims to promote the transformation of the chemical industry towards high-value-added products. After the policy is implemented, the domestic price of sulfuric acid has risen from approximately 900 yuan/ton at the beginning of the year to 2,100 yuan/ton. The international price of sulfuric acid has also risen simultaneously. Countries that rely on Chinese sulfuric acid, such as Chile and India, have already experienced production cuts or increased costs.
International: New EU CLP regulations come into effect, raising export compliance requirements
On May 1st, the 22nd amendment to the EU CLP Regulation (Classification, Labelling and Packaging of Substances) (EU 2024/2564) was officially implemented.
This regulation is the core compliance document for the management of chemicals in the European Union. This revision has added 27 new entries for substances with harmonized classification, updated the hazard characteristics classification of 16 existing substances, and deleted 7 no-longer-applicable entries. The new regulations require that all chemicals and mixtures sold in the EU market must be re-labeled with hazard warnings and updated safety data sheets (SDS) according to the updated classification standards, ensuring accurate identification of hazard characteristics throughout the supply chain.
Industry experts have stated that the new CLP regulations of the European Union will directly affect the export business of Chinese chemical enterprises to the EU. This involves multiple categories such as basic chemical raw materials, fine chemicals, pesticides, and coatings. Enterprises need to complete the compliance work such as product classification review, label replacement, and SDS update within the specified time; otherwise, they will face the risk of being barred from the EU market.
Industry impact: Short-term compliance costs increase, promoting high-quality development in the long term.
The simultaneous implementation of domestic and international policies will temporarily increase the costs for chemical enterprises in areas such as safety renovations, compliance certifications, and label updates. Some small and medium-sized enterprises will face pressure to transform. In the long term, this will promote the improvement of industry safety standards, the optimization of the industrial structure, and the reconfiguration of global trade order. Domestic chemical enterprises need to accelerate their adaptation to the new legal requirements, improve their safety management systems, and closely monitor international compliance trends to make early preparations for the upgrade of compliance in overseas markets such as the EU. Export-oriented enterprises need to balance domestic supply security with international market demands, optimize product structures, increase the proportion of high-value-added products, and achieve safe, compliant, and efficient development.
