VCI sees record investments in the chemical industry and warns of competitive disadvantage vis-à-vis China

VCI President Thomas Wessel also pointed to risks for Germany as a business location. In particular, China has massively expanded its investments in chemical research and is driving forward standards in key future fields such as battery technology, electric mobility, and basic chemicals. Without reliable political framework conditions, Germany risks falling behind.

Wessel's assessment of the federal government

Wessel also commented on the federal government's industrial policy. Wessel described the federal government's reform package as a first start. He is pressing, however, for contradictory policies – for example the health-savings package, which massively weakens the pharmaceutical location – to be corrected.

According to the VCI, it therefore calls for an industrial policy that lowers energy prices, accelerates approval procedures, and cuts red tape. Tax-based research funding must also be designed in a reliable manner so that companies can pool their resources in Germany on a long-term basis.

Demands on industrial policy

According to the association, mid-sized chemical companies in particular, as well as large players such as BASF, benefit from the increased research budgets. At the same time, the need for skilled workers is growing, which is why the VCI is urging greater efforts in training and continuing education.

Competition with China – as well as with the USA, Japan and South Korea – will continue to shape the sector in the coming years, in the VCI's assessment. A continuous investment policy and stable regulatory conditions are crucial to safeguarding international competitiveness.

International competitive pressure

Wessel announced that the association will continue to update the investment figures on an annual basis and enter into dialogue with policymakers and the public. The aim is to make visible the importance of the chemical industry for value creation, employment, and transformation.

The press conference took place on 26 August 2026 in Frankfurt am Main; specific investment figures and comparative figures for China were not quantified in the available releases. The VCI instead pointed to its own industry statistics, which are to be published in the coming weeks.