A double digit decrease in exportation figures and a muted performance from China’s domestic market have reduced the profits of Chinese agrochemical producers; The full chain agronomic services offered by multinationals and domestic distributors have forced the traditional middleman out of the supply chain equation; Rising costs of compliance with China’s EHS regulations has transmitted to the agrochemical industry; Domestic products saw reduced or flat prices while imported products achieved 10 to 20 percentage growth; In 2015, China produced 1.33 million tons of pesticide active ingredients, down from 1.49 tons in 2014. Exportation fell by more than 10% in both volume and value terms. Influenced by complex factors including weather, regulatory policies and changing distribution channels, the domestic usage was slightly lower than expectation at 0.3 million tons, causing Chinese producers to feel the pinch of higher fuel and labor costs. Production and International Trade The largest percentage reduction occurred in herbicide and insecticide categories, decreasing the total production by about 11.7% compared to 2014, representing a 4-year low. Table1- Chinese Pesticide Production in 2015 (a.i., 000 tons)

Four major aspects associated with efficacy data requirements have been clearly defined in the new regulation: comparative analysis with existing pesticide, resistance management, efficacy validation test by subsequent applicant and necessary data to justify the scientificness of multiple compound pesticides.

On 28 Jun 2016, China ICAMA issued the “Interim Guideline on the Field efficacy Trial Sites of Pesticide Registration”, which includes the requirements for trial location of 20 major crops and over 140 pests and diseases and will take effect on 1 Aug 2016.

Biostimulant includes diverse substances and microorganisms that are utilized for plant enhancement or stimulate natural processes to benefit nutrient uptake, nutrient efficiency, tolerance to abiotic stress, and/or crop quality apart from its “nutrient content”. Although the term “biostimulant” has not yet been defined under any specific regulation in China, these types of products are most frequently marketed as two types of novel fertilizer: microbial fertilizers and water soluble fertilizers. As stipulated under the MoA Order 32 “Measures for the Registration Management on Fertilizer”, products fall into both categories have to be registered with the MoA prior to placement on the market.   Product under Fertilizer Registration Depending on the nature, nutrient element, origin, production process, mechanism, function and availability of official product specification, analytical method of nutrient/functional ingredient, criterion for efficacy evaluation and other considerations, products subject to fertilizer registration should be registered, labeled and marketed under 29 mandatorily generic names(AgroPedia:China Fertlizer Registration Overview): Types Mandatorily Generic Name Macronutrient Water-soluble fertilizer containing nitrogen, phosphorus and potassium* Urea ammonium nitrate solution* Potassium nitrate for agricultural use Modified ammonium nitrate for agriculture* Calcium ammonium nitrate for agriculture use* Magnesium-potassium sulfate for agriculture use Magnesium-potassium chloride for agriculture use Slow-release fertilizer* Synergized nitrogen fertilizer Secondary Element Water-soluble fertilizer containing calcium and magnesium* Fertilizer containing calcium and magnesium Calcium nitrate for agricultural use Magnesium sulfate for agricultural

On 22 Jun 2016, China ICAMA released a circular to all provincial subdivisions on the risk investigation of 8 pesticides: carbendazim, atrazine, triazophos, imidacloprid, alachlor, butachlor, metolcarb and dimethacarb. The initiative is a preliminary step of registration review.

On 6 Jun 2016, China ICAMA issued an interim guideline,  “Guideline on Crop/Area Distribution for the Residue Study of Pesticide Registration”, which will take effect on 1 Aug 2016.

According to the China Crop Protection Industry Association, total sales of the top 100 pesticide companies were 103.84 billion CNY in 2015, a slight decrease of 2.35% on the previous year of 106.33 billion CNY. The qualifying criterion for the ranking list reduced to a minimum of 324 million CNY per annum turnover, reflecting a minor decline of 1.24%.