The three English abbreviations—MSDS, GHS, and REACH—reflect the evolving global standards and regulatory frameworks that govern chemical safety and trade. These trends are reshaping how chemical companies operate internationally, and domestic petrochemical firms in China must take them seriously to avoid being left behind. Li Yongwu, president of the China Petroleum and Chemical Industry Association, emphasized this during an interview at the recently concluded International Chemical Show on April 21.
According to Li, the first major trend is the Material Safety Data Sheet (MSDS). As mandated by the International Organization for Standardization (ISO), every chemical product must have a corresponding MSDS, which contains at least 16 key sections, including product identification, composition, hazard information, first aid measures, and physical and chemical properties. In international trade, MSDS acts as a chemical’s official ID card. Without it, a company cannot legally conduct business with foreign partners. However, China still lacks a comprehensive understanding and standardized application of MSDS systems, which could put domestic companies at a disadvantage if they don’t improve quickly.
The second trend is the Global 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, China has integrated GHS into its national scientific and technological initiatives. With over 3,000 types of chemicals traded annually, valued at more than $40 billion, improper classification or labeling leads to significant economic losses. This highlights the urgent need for better compliance.
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 in the EU. Once fully implemented, this will affect at least 730 Chinese chemicals, increasing export costs by more than 5%. For China’s petrochemical industry, this means higher compliance costs and stricter scrutiny.
Li Yongwu stressed that these developments signal a growing global emphasis on chemical safety, health, and environmental protection. To remain competitive, Chinese companies must not only understand but also actively participate in shaping these international rules. Only through proactive engagement can they secure a stronger position in the global market and avoid being sidelined by regulatory barriers.
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