The three English abbreviations—MSDS, GHS, and REACH—reflect the evolving global standards and regulatory frameworks governing chemical safety and trade. These trends are reshaping international chemical regulations, and domestic petrochemical companies in China must take them seriously to avoid being left behind. This was emphasized by Li Yongwu, president of the China Petroleum and Chemical Industry Association, during an interview at the recently concluded International Chemical Show on April 21.
Li highlighted three major trends that Chinese companies should pay close attention to. The first is the Material Safety Data Sheet (MSDS). According to the International Organization for Standardization (ISO), every chemical product must have a corresponding MSDS, which includes essential details such as product identification, composition, hazards, first aid measures, physical and chemical properties, and more. In international trade, an MSDS functions like a product's ID card. Without it, trading with foreign partners becomes difficult. However, China still lacks sufficient awareness and proper implementation of MSDS systems, leading to non-compliance and potential trade barriers.
The second trend is the Globally Harmonized System of Classification and Labelling of Chemicals (GHS). Since 2008, the United Nations has required all countries to classify and label chemicals according to GHS guidelines. As a signatory to GHS, China has prioritized this as a national scientific initiative. With over 3,000 types of chemicals traded annually, valued at more than $40 billion, improper classification or labeling causes significant economic losses each year. Strengthening GHS compliance is crucial for maintaining competitiveness.
The third trend is the EU’s REACH regulation, originally set to take effect in 2007. It requires registration, evaluation, and authorization of over 30,000 chemicals on the EU market. Any chemical not properly registered or tested cannot be sold. Once fully implemented, Chinese exporters will face at least 730 chemicals requiring registration and evaluation, increasing export costs by over 5%. This poses a serious challenge for China’s chemical industry.
Li emphasized that these trends signal a growing global focus on chemical safety, health, and environmental protection. To stay ahead, Chinese companies must not only understand and follow international trade rules but also actively participate in shaping them. Only through proactive engagement can they secure a stronger position in the global economy.
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