The petroleum and chemical industries are fundamental sectors of China’s national economy, providing essential raw materials and energy while supporting the development of various other economic sectors. These industries rely on feedstocks such as crude oil, coal, natural gas, natural minerals, and biomass, and produce a wide array of downstream products, including petroleum products like gasoline, diesel, fuel oil, and lubricants; agricultural chemicals such as fertilizers and pesticides; basic organic and inorganic raw materials; synthetic polymer materials; and specialty and fine chemicals. The petroleum and chemical industries are characterized by a broad product portfolio, strong intersectoral linkages, and intensive requirements for technology, capital, and energy.

In 2019, China’s petroleum and chemical industries comprised 26,000 enterprises above designated size, employing over 6 million people and generating total main business revenue of RMB 12.27 trillion, with the chemical sector accounting for RMB 6.88 trillion. Profits reached RMB 668.367 billion, and the total value of imports and exports amounted to US$722.21 billion. In 2020, enterprises above designated size reported operating revenue of RMB 11.08 trillion, down 8.7% year on year; total profits stood at RMB 515.55 billion, a year-on-year decline of 13.5%; and the total value of imports and exports totaled US$629.77 billion, down 12.8% from the previous year.

In 2020, affected by the COVID‑19 pandemic and the global economic downturn, the industry’s key economic indicators all declined. Nevertheless, during the 13th Five-Year Plan period, the sector still achieved strong performance, with average annual growth rates of 4.51% in value added, 4.17% in operating revenue, 5.95% in total profits, and 3.74% in total import and export value (including an average annual increase of 2.66% in total exports).

China is a veritable global powerhouse in the petroleum and chemical industries. In 2010, the country’s petroleum and chemical sectors achieved leapfrog growth, with total industry sales revenue reaching RMB 8.88 trillion, ranking second worldwide—behind only the United States. Notably, the chemical industry’s sales revenue surpassed that of the U.S. for the first time, securing China’s position as the world’s largest; this leadership has remained unchallenged ever since. By 2017, China’s chemical sales had reached EUR 1.29 trillion, exceeding the combined chemical sales of the United States (EUR 466 billion) and Europe (EUR 402 billion). Furthermore, in 2019, China’s chemical sales outstripped the combined sales of the United States, Europe, and Japan.

During the 13th Five-Year Plan period, as the national strategy for innovation-driven development was implemented in depth, the entire industry saw a steady increase in investment in scientific and technological innovation and in innovative activities, leading to continuous enhancement of its innovation capacity and remarkable achievements in science and technology.

During the 13th Five-Year Plan period, the share of China’s petrochemical industry in global patent applications for inventions increased year by year, reaching 69.49% by 2020, with a five-year growth rate of 84.96%.

During the 13th Five-Year Plan period, China’s petroleum and chemical industries were granted more than 297,500 patents, an increase of 114,800 compared with the 182,700 patents granted during the 12th Five-Year Plan. Throughout this period, the industry as a whole received 152 national science and technology awards and conferred 1,094 industry-specific science and technology awards. Additionally, 36 national-level enterprise technology centers, 24 national technology innovation demonstration enterprises, and 33 joint engineering laboratories and engineering research centers were established.

2.1 A number of advanced exploration and development technologies have been successfully developed, providing a solid foundation for ensuring stable oil and gas production and supply in China.

PetroChina’s Changqing Oilfield has continuously strengthened its efforts to master exploration and development technologies for low-permeability oil and gas reservoirs, achieving breakthroughs in a series of key technologies. As a result, it has obtained more than 100 science and technology awards at or above the provincial and ministerial levels, laying a solid foundation for maintaining stable crude oil production at 50 million tonnes. Sinopec, grounded in independent innovation, has made significant advances in exploration and development theory, geophysical and wellbore technologies, and equipment R&D. It discovered and successfully developed China’s first—and currently largest—shale gas field, the Fuling Shale Gas Field, making China the first country outside North America to achieve large-scale shale gas development. This achievement was awarded the First Prize of the 2017 National Science and Technology Progress Award. Shaanxi Yanchang Petroleum Co., Ltd., in collaboration with China University of Petroleum, the Chinese Academy of Sciences, and other institutions, has developed a comprehensive, integrated exploration and development technology system. Leveraging this technology, the company has added 1.7 billion tonnes of proven reserves, boosting China’s annual crude oil output from 3.8 million tonnes to 12.41 million tonnes. For ten consecutive years, production has grown steadily by more than 10 million tonnes annually, elevating the Ordos Basin to the nation’s largest oil and gas production base and making substantial contributions to national energy security and the socio-economic development of the old revolutionary base areas in northern Shaanxi. This achievement received the Second Prize of the 2016 National Science and Technology Progress Award. China National Offshore Oil Corporation (CNOOC) and other entities, after eight years of collaborative research, pioneered exploration theories and technologies for deep‑water, large‑scale, fully integrated condensate gas fields in the Bohai Bay Basin. Their work revealed that, following extensive hydrocarbon generation from source rocks, large‑area, high‑intensity gas generation can still occur, thereby confirming that, against the backdrop of lithospheric thinning in intracontinental rift basins, the Bohai Bay Basin possesses the material prerequisites for forming giant gas fields. This achievement was awarded the First Prize of the 2019 National Science and Technology Progress Award.

2.2 A number of modern coal‑chemical technologies with independent intellectual property rights have been successfully developed, maintaining China’s internationally leading position in this field.

Since the launch of the 13th Five-Year Plan, as the global trend toward raw-material diversification has gained momentum, China’s modern coal‑chemical industry has accelerated its development, overcoming a host of critical technological challenges in areas such as large‑scale advanced coal gasification, indirect coal‑to‑liquids, and coal‑to‑ethanol. Through the implementation of demonstration projects, key technologies and equipment have been successfully commercialized. Advanced coal‑gasification technologies—including opposed‑nozzle slurry‑coal gasification, aerospace pressurized pulverized‑coal gasification, and slurry‑coal water‑cooled wall waste‑heat boiler gasification—are now advancing toward longer operating cycles and larger scale.

The Ningxia Coal Industry Company of the National Energy Group, under its “4-million‑ton‑per‑year coal indirect liquefaction demonstration project,” has invented a Fe–Mn–based Fischer–Tropsch synthesis catalyst with high activity, high selectivity, and excellent wear resistance, and pioneered a novel high‑temperature slurry‑bed Fischer–Tropsch process. The company has also overcome key engineering bottlenecks in the design and construction of large‑scale Fischer–Tropsch reactors, fulfilled 27 national tasks for the domestic production of critical equipment and materials, and developed an integrated suite of technologies for the large‑scale coal indirect liquefaction system that ensures clean and efficient operation. These achievements have enabled safe, stable, and environmentally friendly operation, thereby significantly advancing China’s coal indirect liquefaction industry. Meanwhile, the Dalian Institute of Chemical Physics of the Chinese Academy of Sciences has developed the third‑generation Methanol-to-Olefins (DMTO‑III) technology. Pilot‑scale test results demonstrate a methanol conversion rate of 99.06%, an ethylene–propylene selectivity of 85.90% (by weight), and a methanol consumption of 2.661 tonnes per tonne of olefins—representing a substantial reduction compared to the first‑generation technology, which required approximately 3.0 tonnes of methanol per tonne of olefins. The DMTO‑III technology has already been successfully licensed, and its next‑generation catalyst is now being deployed in multiple existing million‑ton‑per‑year DMTO industrial plants.

2.3 Innovatively developed a portfolio of new chemical materials and high-end chemicals, addressing critical technological bottlenecks and achieving strategic breakthroughs, thereby steering the industry toward the mid- to high-end segment.

China has achieved groundbreaking progress in advanced polymer materials, high-performance resins, specialty synthetic rubbers, high-performance fibers, functional membrane materials, electronic chemicals, and a host of other critical areas within the chemical new materials and specialty chemicals sectors.

The full‑chain manufacturing technology for aliphatic isocyanates (ADI), developed by Wanhua Chemical Group Co., Ltd., has broken the 70‑year monopoly held by foreign companies over the complete production process of ADI‑based products. This has fostered a distinctive ADI industrial cluster that boasts the world’s most comprehensive product range, cutting‑edge technology, and the most integrated supply chain, enabling the domestic, independent supply of critical raw materials for aerospace and defense, high‑end equipment manufacturing, new energy, and energy‑saving and environmental‑protection industries. Building on its successful development of the first generation of domestically produced chlor‑alkali membranes, Shandong Dongyue Polymer Materials Co., Ltd. has further engineered a new generation of high‑performance, domestically made chlor‑alkali ion exchange membranes characterized by “high current density and low cell voltage.” The “next‑generation perfluorinated ion exchange membrane” developed by Dongyue can effectively replace imported counterparts, marking another milestone in the advancement of China’s chlor‑alkali ion exchange membrane industry. Jinfa Technology Co., Ltd. has created a series of semi‑aromatic, high‑temperature‑resistant nylon PA10T products with internationally leading performance, achieving industrial-scale production of semi‑aromatic high‑temperature nylons. This breakthrough has shattered foreign technological and market monopolies in this field, securing a commanding position in global competition. Hubei Xingfa Group has developed key technologies for producing ultra‑high‑purity electronic‑grade phosphoric acid and highly selective etching solutions for semiconductor chips. By overcoming challenges in the preparation of ultra‑high‑purity yellow phosphorus and in the development of phosphate‑anhydride barrier coatings for corrosion resistance, they have successfully manufactured ultra‑high‑purity electronic‑grade phosphoric acid with impurity levels below 10 ppb. Furthermore, through innovative techniques for precisely controlling the etching rate of chip‑specific etching solutions, they have successfully formulated highly selective phosphoric‑acid‑based etchants.

2.4 A suite of advanced process intensification and resource‑utilization technologies has been developed, significantly elevating the industry’s level of green development.

Since the launch of the 13th Five-Year Plan, the entire industry has actively developed and promoted advanced process intensification and resource‑utilization technologies, vigorously advanced clean production and the circular economy, and achieved sustained reductions in overall energy consumption and in the energy intensity of key products, while significantly cutting emissions of the “three wastes.”

In response to the critical demand for producing ultra‑clean gasoline via C4 alkylation, China University of Petroleum (Beijing) has developed a novel green, safe, and environmentally friendly C4 alkylation technology and built the world’s first 100,000‑ton‑per‑year composite ionic liquid–based C4 alkylation industrial unit. This breakthrough has shattered the technological monopoly held by foreign firms in clean gasoline production and resolved a global challenge that has plagued the refining industry for decades. Meanwhile, Tsinghua University and Wengfu Group have pioneered a microchannel wet‑process phosphoric acid purification technology that reduces the cost of food‑grade phosphoric acid production by 23.8% compared with the thermal process and by 4.2% relative to imported wet‑process purification technologies. Additionally, Suzhou University and other institutions have developed an enhanced multi‑catalyst embedded technique for the enrichment and removal of low‑concentration VOCs, addressing the longstanding technical bottleneck of poor enrichment and catalytic degradation efficiency under low‑driving‑force conditions. This innovation provides a viable engineering solution for removing VOCs and recalcitrant organic compounds from low‑concentration waste gases and wastewaters. Furthermore, Nanjing Tech University and its collaborators have independently developed an organic–inorganic composite membrane for organic solvent recovery, enabling the high‑purity recovery and resource‑oriented reuse of organic solvents in the chemical raw materials and chemical products manufacturing sectors.

2.5 The development of a batch of major technological equipment has enhanced the industry’s level of equipment self-reliance.

Since the launch of the 13th Five-Year Plan, China has vigorously pursued scientific and technological breakthroughs in offshore and onshore oil and gas exploration and development equipment, as well as in storage and transportation, making significant contributions to optimizing the structure of oil and gas resources and safeguarding national energy security. The successful development of ultra-deep well drilling rigs capable of operating at depths exceeding 10,000 meters, large-scale deepwater seismic survey vessels and engineering‑geological exploration ships along with their supporting technologies and equipment, comprehensive high‑precision marine seismic exploration systems, and integrated three‑dimensional logging and evaluation technologies and equipment for complex offshore oil and gas reservoirs has provided robust technical and infrastructural support for defending China’s maritime rights and advancing its oil and gas industry into deepwater and international markets. In the field of refining equipment, the main units for heavy‑oil catalytic cracking have been localized; the successful development of key static and rotating equipment—including high‑pressure hydrogenation reactors, threaded‑lock‑ring type high‑pressure heat exchangers, high‑pressure air coolers, and centrifugal and reciprocating compressors—marks a major leap forward in the equipment standards of China’s refining industry. In coal‑chemical engineering, domestic production has been achieved across large compressor packages (for air separation and recycle gases), large gasifiers, large synthesis reactors, and automated control systems, signaling that China’s modern coal‑chemical sector now possesses an independent and self‑reliant technological and equipment support system.

China’s petrochemical technology and equipment sector is experiencing robust growth, with significant advances across specialized segments including oil drilling and production equipment, refining and petrochemical processing equipment, coal‑chemical processing equipment, and rubber‑industry machinery. In terms of investment, the localization rate for refining equipment exceeds 90%, that for million‑ton‑scale ethylene and downstream facilities stands at over 85%, the localization rate for modern coal‑chemical equipment surpasses 90%, and rubber‑processing equipment is localized at around 95%.

In today’s world, science and technology are shaping global economic development, social progress, and the well-being of people more profoundly than at any other point in history. Innovation has become a crucial means of addressing pressing global challenges—such as energy and resource scarcity, environmental degradation, natural disasters, and public health—and serves as the primary engine driving economic and social development.

3.1 Development Opportunities

The 14th Five-Year Plan period marks a historic juncture in China’s journey toward achieving the Two Centenary Goals and represents a critical phase in the petroleum and chemical industries’ transformation from a major producer to a global leader. As pillar sectors of the national economy, these industries not only supply end‑use products to downstream markets but also provide essential raw materials to upstream industries, giving them a distinct competitive edge. High‑quality development in the sector places substantial demands on scientific and technological innovation: (1) To meet the needs of key national economic areas—such as electronic information, new energy, transportation, and aerospace—as well as major national infrastructure projects, it is imperative to vigorously advance advanced petrochemical production technologies while addressing existing capability gaps; (2) To satisfy evolving consumer expectations at higher levels, product quality must be continuously improved, with a focus on developing green agrochemicals and customized chemical solutions; (3) To secure strategic advantages in emerging industries, it is essential to strengthen fundamental research and tackle critical core technologies, breaking through bottlenecks in cutting‑edge technologies and creating a portfolio of strategically important products; (4) To promote green and safe development, a suite of low‑carbon technologies, inherently safe processes, and related equipment must be developed; (5) To deepen the integration of informatization and industrialization, robust progress must be made in digital, information‑based, and intelligent technologies.

3.2 Challenges Faced

At present, we are witnessing a period of unprecedented change in a century. During the 14th Five-Year Plan period, the industry’s scientific and technological innovation will enjoy rare opportunities for development, while also confronting numerous challenges.

3.2.1 External Environmental Challenges

The international environment is severe, complex, and highly volatile. The COVID‑19 pandemic has erupted and spread globally, triggering a profound restructuring of the world order. The global economy has deteriorated sharply, with major disruptions to industrial and supply chains, while waves of deglobalization, unilateralism, and trade protectionism have gained momentum. International scientific and technological cooperation and exchange have suffered serious setbacks.

3.2.2 Prominent Issues in Its Own Existence

The industry faces the following salient challenges in technological innovation: (1) overall enterprise innovation capacity remains weak; (2) collaborative innovation mechanisms and the ability to translate research findings into engineering applications urgently require improvement; (3) product innovation and development capabilities targeting end‑user markets need to be strengthened; and (4) cultivating innovative talent, particularly leading experts, remains a long‑term and arduous task.

Given the distinct circumstances and evolving development landscape, technological innovation in the industry during the 14th Five-Year Plan period will differ from any previous era. First, there will be a stronger emphasis on self-reliance and self-strengthening, with the focus of innovation shifting from primarily catching up and keeping pace to both keeping pace and taking the lead. Second, building on efforts to address current “bottleneck” technologies, innovation will place greater emphasis on addressing major future‑oriented needs. Third, in tackling critical generic technologies and significant scientific and technological challenges, greater priority will be given to cross‑disciplinary collaboration and cooperation across the upstream and downstream sectors.

4.1 Overall Approach

Guided by a problem‑oriented, goal‑oriented, and results‑oriented approach, and under the overarching mandate of supporting the new development paradigm of dual circulation, we will align the innovation chain with the industrial chain and vice versa, focusing on strengthening, extending, and supplementing key links in the industrial chain. We will prioritize scientific and technological self‑reliance and self‑strengthening, achieve breakthroughs in critical technologies, develop a portfolio of high‑end products, and establish a suite of innovation platforms, thereby enhancing the industry’s capacity to deliver cutting‑edge science and technology, ensuring the stability and security of industrial and supply chains, and driving high‑quality development across the sector.

4.2 Development Objectives

During the 14th Five-Year Plan period, a batch of critical, common‑use technologies will be developed; 30 to 50 “short‑board” and “bottleneck” technologies that constrain industry development will be overcome; in key areas, 80 to 100 advanced technologies and products will be created, 200 advanced, applicable technologies will be promoted, and 20 major demonstration projects for energy conservation and emissions reduction will be implemented; 10 to 15 sets of large‑scale, integrated technologies and equipment will be independently developed, further strengthening the industrial foundation. Big data, cloud computing, the Internet of Things, artificial intelligence, and digital genomics will see initial application across the sector, with breakthroughs in a number of key technologies, the establishment of pilot digital factories and digital industrial parks, and the construction of two to three industrial Internet application platforms.

Focusing on the grassroots and front lines, we will cultivate and develop an innovation talent pool that is sufficiently large in number, optimally structured, rationally distributed, and of high quality, thereby establishing a relatively complete “talent chain.” We will establish 20 to 30 industry‑specific key laboratories, engineering laboratories, and engineering centers, as well as 20 innovation consortia (industry‑technology innovation alliances) or industrial technology public service platforms, and build a number of national‑level R&D platforms.