Natural rubber, along with oil, coal, and iron ore, is listed as one of the four major industrial raw materials. By 2003, China's natural rubber production and planting area ranked fifth in the world, forming three advantageous natural rubber planting areas mainly in Hainan, Yunnan, and Guangdong. The importance of natural rubber is becoming increasingly prominent.

Enhanced demand

With the rapid development of the Chinese economy, the application scope of rubber in the industrial field is constantly expanding, and the demand for natural rubber is showing a linear upward trend. At present, China's natural rubber production accounts for only 7% of the world's total production, while consumption accounts for 20% of the world's total consumption. The domestic production growth rate is only one-third of the consumption growth rate, and the supply and demand gap is constantly expanding.

Facing challenges

Although demand is increasing, the development of natural rubber still faces challenges. At the recent high-level forum on the development of China's natural rubber industry, Zhu Xiuyan, Chief Economist of the Ministry of Agriculture, stated that currently, with the deepening of economic globalization and regional economic integration, the global supply and demand pattern of natural rubber has undergone significant changes, which has had a certain impact on the development of China's natural rubber industry.

After China's accession to the WTO, the natural rubber industry has integrated into more intense international competition. On the one hand, the protective effect of tariffs will gradually disappear, which will create strong pressure on China's natural rubber industry in international competition; At the same time, major rubber producing countries abroad have greater advantages in processing scale efficiency, product differentiation, and other aspects, which will also have a certain impact on China's natural rubber industry.

In addition, the formation of the China ASEAN Free Trade Area and the establishment of the ASEAN Association of Major Natural Rubber Producers will have a certain impact on the supply and demand of natural rubber in China. The formation of the China ASEAN Free Trade Area requires China to accelerate the process of regional trade liberalization with a commitment superior to that of the WTO. The main domestic production of natural rubber in ASEAN has a good foundation and strong domestic support, which will exert certain pressure on China's natural rubber industry in the early stage of trade liberalization.