Looking back on the development of China’s pesticide industry, we reflect on the sector’s future direction.

Since the founding of the People’s Republic of China, the Chinese pesticide industry has undergone four distinct phases.  

1.1   Phase One

The phase of pesticide shortages under the planned economy ( 1949–1978 In that year, the pesticide industry embarked on a difficult start, operating under the planned economy with centralized research efforts and unified supply.  

1.2   Phase II

The initial stage of the market economy, characterized by the full release of pesticide production capacity ( 1978–1997 In that year, the agrochemical industry experienced rapid growth, with a surge of grassroots entrepreneurial pioneers; numerous highly effective and practical generic products were introduced, and agrochemical regulation gradually transitioned onto a legally grounded track.

1.3   Phase Three

The stage of capacity expansion, adjustment, and upgrading in the pesticide industry (from 1997 From the promulgation of the first “Regulations on the Administration of Pesticides” in the year to… 2017 With the promulgation of the new Regulations on the Administration of Pesticides, legal governance of the pesticide industry has been further strengthened, international integration has accelerated, awareness of pesticide safety management has increased, and high‑efficacy, low‑toxicity, and low‑residue pesticide varieties have been rapidly developed.

1.4   Phase Four

The agrochemical industry has entered a new phase of innovation and high-quality development. 2017 year 6 Over the coming period, the legal framework for pesticide management will be further strengthened, ushering in a new era of full‑life‑cycle regulation. Industry consolidation is accelerating, with a clear orientation toward innovation and high‑quality development.

        Looking back on the evolution of the pesticide industry, it has advanced in step with China’s economic development. Through arduous efforts and a spirit of pioneering innovation, China’s pesticide sector has grown from scratch to become a major player, traversing a remarkable journey marked by profound change and rapid expansion. 70 Over the years, through thick and thin, it has achieved remarkable accomplishments. First, the agrochemical industry has grown from weakness to strength, advancing from catching up to standing shoulder to shoulder with its global peers. 2005 First, China has become the world’s leading producer and exporter of agricultural chemicals. Second, breakthroughs have been achieved in agrochemical science and technology, marking a transition from primarily imitative development to independent research and innovation. Third, international cooperation and exchanges in the agrochemical sector have yielded significant results, enhancing China’s global influence in this field. Fourth, a cohort of entrepreneurs—hardworking, business‑savvy, and possessing a global strategic vision—has emerged, giving rise to a number of agrochemical enterprises that are both sizable and equipped with robust innovation capabilities and distinctive corporate cultures; these constitute the fundamental foundation for the industry’s sustained growth. Fifth, a comprehensive legal and regulatory framework, along with an effective oversight system, has been established, while the workforce responsible for agrochemical management has expanded and the institutional structure has been continuously refined.  

        Looking back at the evolution of the pesticide industry, we can clearly discern its developmental trajectory. First, the pesticide industry has been closely intertwined with the nation’s socio-economic development. “ Major market index ” First, there is a strong alignment: the pesticide industry thrives only when the national economy is robust. Second, the pesticide industry and agricultural modernization are in sync—agricultural development both drives and leads the growth of the pesticide sector, with the latter serving the former. Third, “ danger ”“ machine ” Born together, crises invariably give rise to new opportunities. The agrochemical industry has experienced numerous ups and downs, enduring countless hardships, yet in the end it is… “ Mountains rise, rivers wind—just when all seems lost, willows darken and flowers bloom, heralding another spring. ” Fourth, circumstances give rise to heroes, and heroes, in turn, shape the times. The reform and opening-up process has forged the achievements of the older generation of agrochemical entrepreneurs, and the new generation will surely usher in a new era of brilliance.

New Changes Facing the Pesticide Industry in the New Phase

Analyze from several dimensions, including national strategic policies, consumer demographics, market competition and the industry itself, as well as industry management approaches.

2.1   The concept of green development has taken root and is being put into practice.

We need both clear waters and lush mountains, as well as mountains of gold and silver. Indeed, we would rather have clear waters and lush mountains than mountains of gold and silver—and in fact, clear waters and lush mountains themselves are mountains of gold and silver. In the past, in pursuit of food security, the use of agricultural inputs such as pesticides was often unscientific, placing considerable strain on the ecological environment. Since the 19th National Congress of the Communist Party of China, green development and ecological conservation have been elevated to an unprecedented level. At the national level, vigorous efforts have been made on one hand to advance… “ Environmental Protection Storm ” On the one hand, it raises the bar for pesticide registration reviews and for licensing of production and operations; on the other, from the corporate perspective, companies must not only settle longstanding environmental liabilities but also make upfront investments to address emerging environmental requirements, all while coping with increasingly stringent administrative licensing standards—creating immense pressure.

2.2   Consumer preferences on the demand side have undergone a significant shift.

The steady expansion of land‑management scales and the ongoing growth of new agricultural business entities have brought about significant changes in pesticide‑application equipment and methods. Meanwhile, the extension of land‑use rights and consumers’ growing preference for branded, high‑quality agricultural products have boosted demand for low‑toxicity, highly effective, and environmentally friendly pesticides. All these trends call for us to adopt a demand‑driven approach, examine the development trajectory of the agrochemical industry under emerging production models and organizational forms, and accordingly implement new strategic adjustments.

2.3   Pesticide “ Go out ” Increased uncertainty

Affected by multiple factors—including the tightening of domestic environmental protection standards, industrial development in certain developing countries, and Sino‑U.S. trade tensions—and particularly amid a complex and volatile international landscape, the agrochemical industry… “ Go out ” An unprecedented challenge.

2.4   Pesticide companies are increasingly becoming sharply differentiated.

Faced with the triple pressures of economic downturn, environmental rectification, and workplace safety, the entire industry is under significant strain. Under the dynamics of a highly competitive market, the “winner-takes-all” effect among leading firms, the moat created by proprietary intellectual property and stringent product‑quality standards, and the survival strategy of differentiating through distinctive strengths are all beginning to take hold.

2.5   A major overhaul has been implemented in the industry’s management approach.

Marked by the promulgation of the new Regulations on the Administration of Pesticides, oversight has shifted from a fragmented, multi‑agency approach to a unified system under the purview of the agricultural authorities.

In terms of management philosophy, implementation is essential. “ Streamlining administration, delegating power, improving regulation, and enhancing services ” In line with the requirements of streamlining administration and delegating power, we will govern the pharmaceutical sector in accordance with the law, and the regulatory authorities… “ Nothing may be done without authorization by law. ” , the administrator “ Anything not prohibited by law is permitted. ” Strengthening market regulation begins with a accountability‑driven mechanism that deters relevant departments and personnel from taking matters lightly. Secondly, institutional reform will bolster the agricultural law‑enforcement workforce and enhance its enforcement capabilities; municipal and county levels are the focal points of this reform. In addition, regulatory tools are continually being upgraded—for instance, efforts are underway to advance the digitalization of pesticide oversight, using product traceability as a starting point to implement dynamic monitoring across the entire system, throughout all processes, and encompassing all key elements, thereby enabling the timely identification of problematic pesticides and the early detection of trends in the industry’s transformation and upgrading. “ Lesion ” and pain points. Shifting the management control point upstream —— Focus on market access.

In terms of registration and review, we will strictly regulate homogeneous products, with the goal of achieving by… 2020 The number of newly registered homogeneous products has decreased this year. 30% ; Supports the registration of high-efficiency, low-toxicity, and low-residue pesticides, as well as the registration of pesticides for minor crops and biopesticides. “ Green Customs Clearance ” . Improve the pesticide phase-out mechanism, with a focus on those that have already been registered. 15 Conduct periodic evaluations of pesticide varieties for a period of years, giving priority to those identified as posing higher risks through usage monitoring. 10 Conduct post‑registration evaluations for each pesticide active ingredient, and promptly implement regulatory measures for those found to pose significant risks. Accelerate the implementation of the plan to replace highly toxic pesticides, and address the remaining… 10 Various highly toxic pesticides, in accordance with “ One matures, one is disabled. ” The principle of orderly phase-out.

Rational Reflections on the Pesticide Industry

In recent years, the agrochemical industry has undoubtedly faced multiple challenges. However, people need to eat, and agriculture must continue to develop. General Secretary Xi Jinping has repeatedly emphasized that Chinese people should primarily rely on domestically produced grain, and for agriculture to thrive, agrochemicals are indispensable. From this perspective, the agrochemical sector is by no means a sunset industry; rather, it is a perennially vital one. Overall, we should maintain a positive and optimistic outlook on the industry’s development.

3.1 A limited market is the primary cause of the industry’s difficulties.

Any market is inherently limited, and overcapacity constitutes the principal contradiction of capitalist society; the history of human capital development is, in essence, a history of the struggle for markets. “Environmental‑protection crackdowns” and the like are merely catalysts; they have simply brought forward the industry’s broader challenges, with market forces ultimately remaining the decisive factor.

3.2 The pesticide market still has blind spots

Since the beginning of the new century, agriculture, rural areas, and farmers have undergone profound transformations. From the perspective of agricultural development, demand for high-quality agricultural products has risen, the acreage devoted to minor crops has expanded, new agricultural machinery and practices have been adopted, and the primary, secondary, and tertiary sectors have become increasingly interconnected. In terms of production organization, new types of business entities—such as farms, cooperatives, and agribusinesses—have experienced robust growth; requirements for service organizations supporting agricultural production have intensified; rural young and middle-aged labor is in short supply; and the needs of pesticide users are evolving. These changes represent opportunities and market potential, calling for innovative pesticide products to meet emerging demands.

3.3 There is still room in the international market

The agrochemical industry requires end-to-end integration across the upstream and downstream sectors; in a sense, it is an industry with a certain competitive moat, making external entry relatively difficult. For smaller countries, as well as for some larger ones, establishing a comprehensive system is particularly challenging. Furthermore, China serves as the chair country of the Codex Committee on Pesticide Residues, actively participating in… Exchanges with international organizations such as FAO/WHO and the OECD confer a certain degree of influence over international regulatory frameworks, enabling China to leverage multilateral platforms to expand cooperation channels and opportunities in target markets for its pesticide exports.

3.4 Mergers and restructurings among agrochemical companies are an inevitable trend.

Pesticide enterprises are small, fragmented, and disorganized, with weak innovation capabilities; they neither align with market dynamics nor meet the objectives of regulatory authorities. The 18th National Congress of the Communist Party of China emphasized giving full play to the decisive role of the market in resource allocation while enhancing the government’s role. Today, the market’s invisible hand is already quietly at work, and the government’s visible hand is also exerting its influence—through measures such as requiring new firms to locate in industrial parks, raising entry barriers, mandating environmental protection facilities, and implementing various industry‑specific policies. Mergers and restructurings aimed at achieving greater scale and strength have become an inevitable trend.

3.5 Some agrochemical companies will transform into agricultural production service enterprises, and some may even engage directly in agriculture.

Developing agricultural production services is of particular significance for the advancement of modern agriculture. In 2017, the Ministry of Agriculture, the National Development and Reform Commission, and the Ministry of Finance jointly issued the “Guiding Opinions on Accelerating the Development of Agricultural Production‑related Service Industries,” calling for vigorous efforts to promote the growth of such services. In 2019, the General Office of the CPC Central Committee and the General Office of the State Council further released the “Opinions on Promoting the Organic Integration of Smallholder Farmers with Modern Agricultural Development.” Drawing on international experience in modern agricultural development, China’s production‑related service sector still has considerable room for expansion; pesticide companies, with their deep understanding of agriculture and familiarity with farmers, possess inherent advantages in transitioning into agricultural production‑service enterprises. (The above content is excerpted from “Pesticide Science and Management.”)