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"Pure imitation won't take us anywhere. If we just copy the production of silicone oil, it's not a real development plan for an organic silicone enterprise. Our long-term goal is to break free from this cycle of imitation," said Sun Huiyi, Chairman of Shandong Dayi Chemical Co., Ltd., in a recent interview with reporters.
He explained that everyday products like shower gels and skincare items have a soft, moisturizing feel on the skin, while synthetic leather has vibrant colors and fabrics offer a superior touch—thanks to the use of silicone intermediates. These compounds can create over 3,000 varieties abroad, but China only manages to produce around 200 to 300. Jiang Jianxiong, deputy director of the State Key Laboratory of Organic Silicone in Zhejiang Province, noted that many domestic products are imitations, with almost no high-end options available.
Silicone is often called the "MSG of industry" due to its excellent properties—insulation, radiation resistance, flame retardancy, corrosion resistance, temperature stability, and biocompatibility. It’s widely used in daily chemicals, electronics, transportation, plastics, and rubber. Despite its versatility, most silicone products start from a few basic monomers.
According to industry reports, demand for organic silicon products in China is expected to grow by more than 25% in the coming years, with an average annual growth rate twice that of the plastics industry and three times that of GDP. The government also supports the sector, as seen in the 2003 policy encouraging foreign investment in high-tech materials, including organic silicon. During the "Eleventh Five-Year Plan" period, the market gap is expected to remain, offering huge potential and opportunities.
However, despite the promising outlook, there are challenges. While there are about 300 companies producing organic silicon intermediates in China, only a few have high technological content and can produce over 10,000 tons annually. Qufu Wanda Chemical’s Kong Cong pointed out that many domestic firms are still copying foreign products, leading to limited innovation. Jiang Jianxiong added that simple imitation can only fix one application issue at a time, but it fails to build a full range of technologies or competitive products.
International chemical giants are entering the Chinese market, with companies like Dow Corning investing half of their global capital in China. This poses a threat to domestic firms if they continue to rely on imitation. Without innovation, they risk losing both the high-end market and their existing share.
Sun Huiyi emphasized that breaking the imitation cycle requires focus and dedication. He shared how his company started by targeting cosmetics, developing a compound hair oil that filled a domestic gap and improved shampoo quality. They later expanded into other areas, such as aluminum foil protectors and spandex spinning oils, which reduced costs and replaced imports.
Another success story is Zhangjiagang City Guotai Huarong Chemical New Material Co., Ltd., known for its silane coupling agents. A marketing representative said that during the survival phase, companies must focus on improving product quality, and once stable, they should invest in R&D.
In short, simply copying others won’t lead to growth. Without independent research and development, it’s hard to achieve real profitability in the market. Innovation and specialization are key to long-term success.