China is a large agricultural country, the amount of arable land has the world's fourth. However, due to its large population, China's per capita arable land area of ​​just 1.4 acres, less than half of the world average. Therefore, for a long time the Chinese government for the development of agriculture and related industries are basic with encouragement. In this case, China's chemical fertilizer industry has been rapid growth. In 2010, the net production of 66.2 million tons of fertilizers in China, "Eleventh Five-Year" period the average annual growth of 5.0%. 

Especially since 2000, the dual stimulation by growth in domestic demand and increased export opportunities of urea has experienced a high-speed development. Domestic urea production in 2000 from 30,350,000 tons to 57,755,000 tons in 2011, an average annual increase of 10.1%. 

The data show that in the 11th Five-Year period, the output of main products of chemical fertilizer in China to maintain rapid growth, urea, ammonium phosphate, potassium chloride production average annual growth of 4.7%, 16.7% and 6.3%. Of which, such as urea, ammonium phosphate fertilizer products have emerged overcapacity, potassium chloride production can not meet demand. Enter the "12th Five-Year", the the urea capacity growth rate is slowing down, and will gradually increase the pace of development of potassium chloride. 

Overall fertilizer production capacity in China there is no structural overcapacity and insufficient. Qi Min said, "In the early stages of development of the fertilizer industry, in order to speed things up, there is no strong restrictions which smaller, less competitive producers, so that the degree of concentration of the industry as a whole is very low. Too many small businesses such as urea production and more dispersed, often open to open the stop. However, due to resource constraints, the potash production supply, the need to import large quantities of agricultural production to meet the domestic needs. " 

Reasonable development in the fertilizer industry in the 12th Five-Year Plan in order to optimize the structure, to control the excessive growth of production capacity requirements. For a production capacity of 200,000 tons of nitrogen fertilizer production plant to be shut down, speed up the fertilizer production industry scale, intensive. 

In 2011 the amount of urea oversupply in China has reached 400 million tons, 2012-2015 urea industry continues to expand, is expected to reach more than 500 million tons. Although the growth rate of the production capacity of less than 1%, has been a marked slowdown, but the increase in production is still more obvious, which is basically in line with the 12th Five-Year Plan of the proposed control excessive capacity growth requirements. Qi Min, from the view of the scale of the ICIS Acciona thinking mastered nearly 200 urea production enterprises, more than 70% of the enterprises in the total production capacity accounts for only 30%, the generally small scale enterprises to improve the industry consolidated competitive in the 12th Five-Year period, urea enterprises will appear round of mergers, while subsequent new production of the size of the device will be larger, while those who do not have the market competitiveness of small and medium enterprises will be eliminated, the scale of the industry and the concentration of the further increase., Hubei Yihua (market share it funds flow), Chongqing Jianfeng large fertilizer companies have the technology and scale advantages are planning to expand production capacity. " 

During the second five urea production enterprises are facing a problem because of the contradictions of the oversupply of urea will increase further, how to ease the contradiction between supply and demand by increasing exports. A few years ago, in order to protect the domestic demand for agricultural production, the government for urea export is strictly controlled. Expected during the second five, the government will appropriate adjustments to the export policy to increase the volume of exports of urea. It is said that the government may in the next year to adjust the tariff to promote domestic nitrogen fertilizer exports, for example, peak tariffs and off-season tariffs, appropriate to encourage the export business of large-scale nitrogen fertilizer business. 

Urea and ammonium phosphate, due to resource constraints, our domestic potassium chloride supply far can not meet demand requirements. Therefore, during the second five, the country plans to increase the production capacity of potassium chloride. First, China has in recent years stepped up efforts on the exploration and development of potash resources, start more than an annual output of more than 500,000 tons of potash construction project. Following the Qinghai Salt Lake Potash, Lop Nur in Xinjiang, one million tons of potash fertilizer base, potash projects currently in the planning and construction of Lop Nur in Xinjiang two 170 tons / year of potassium sulfate, Qinghai Salt Lake 1 million tons / year of potassium chloride, CITIC Guoan (market share it capital flow) 100 tons / year potassium magnesium fertilizer Sichuan Matterhorn 100 tons / year of potassium chloride, Yatai Group (market share it funds flow) of 500,000 tons / year of potassium and magnesium fertilizer, Hamachi potash company 780,000 tons / year of potassium and magnesium fertilizer. In addition, this year, China Geological Survey Bureau announced on October 9 hundred million ton King potash mine in China continued to be found recently, China is highly dependent on the situation is expected to accelerate the improvement in the global potash. 

The project can also be seen from the newly increased, larger than the size. Is expected that by 2015, production capacity will reach 700 million tons of potassium chloride, the self-sufficiency rate to 60%. At the same time, the government also encourages potash enterprises "going out", set up production bases outside sylvite-rich areas, such as Canada, Russia, Thailand and other places, to meet the domestic demand in China.