Two Congresses inspire the whole nation. Premier Li Keqiang, elaborated the development connotation of new urbanization with big thesis during this year’s government work report. The report urges that people should be put at the core of urbanization, a mechanism of integrated development of urban and rural regions should be established, and a course of people orientation, synchronous development of 4 modernizations, layout optimization, ecological civilization and cultural inheritance should be taken during new urbanization process.

Jiuzheng Construction Net (www.jc001.cn/) argues that new urbanization will deal great impetus for China’s economic growth. Governments expect that the new round of urbanization can stimulate internal demand and further promote China’s economy, which is a favorable factor for China’s construction material industry and will impose tremendous impact on sustainable and steady growth of China’s paint & coating industry. On the other hand, as laws and regulations become more stringent to deal with deterioration of environment, enterprises are urged to make transformation and upgrades, so paint and coating industry will accelerate on a course toward environmental protection, low carbon emission and water solvency.

Nevertheless, China’s policies provide favorable conditions for this industry. Following the rapid development of housing industry, China’s paint and coating industry is bound to grow stably and the next 5 years will still be prime time for it. It’s estimated that the output value will reach 600 billion Yuan by 2020. Propelled by robust development of new urbanization and constant rise in paint and coating consumption, China is anticipating having the No.1 paint and coating industry in the world.

Implementation of following policies will indirectly influence the sustainable development of China’s paint and coating industry.

 “Triple 100m People” Plan spurs consumption.

In the reports during 2 Congresses, Premier Li Keqiang pointed out, “we shall make 100 million people to migrate to towns and cities, reform shanty village in towns and cities for 100 million people, and have 100 million people to be urbanized in nearest towns and cities.” This is a new conception concerning new urbanization construction, firstly put forward at a central government’s meeting concerning work on rural regions at the end of 2013. In fact, this new urbanization and agricultural modernization are complementary to each other, aiming at stabilizing population in agricultural industry while transforming them into urbanized people, which will stimulate substantial demand for housing and city facilities.

Urbanization into the nearest towns aims at improving the overall strength of middle-west regions.

This round of new urbanization, clearly indicates the political inclination towards middle and western China, and sets a quantitative target of making 100 million people in middle and western region urbanized in the nearest towns and cities, reinforces constructions of infrastructures for transportation, water conservancy, energy and municipal utilities, so as to strengthen the stamina for development of city groups, cities and towns in middle and western China. Foreseeably, investment and construction in middle and west regions will be intensified, and more attention will be paid to investment in regional city groups and counties.

Reconstruction of shanty zones in cities and towns shall be accelerated to improve living conditions.

 “We will never tolerate a city of skyscrapers sided by shanties and huts.” Government will invest more into reconstruction of shanty zones in cities. “We will reconstruct shanty zones for 100 million people in towns and cities”. A large-scale shanty zone reconstruction has been incorporated into government’s work plan. As early as the end of 2012, Premier Li Keqiang had brought about the plan of reconstruction of 10 million city huts in subsequent 5 years. In 2014 only, the government plans to newly build 7 million security houses, among which 4.7 million are for people in shanty areas.

By estimation, output value of China’s paint and coating industry will reach 600 billion Yuan by 2020.

Regulations and control on real estate industry remains tepid, and paint and coating industry can’t be independent from real estate industry, but its market created by new urbanization according to the 2 Congresses can never be belittled. “Triple 100m People” Plan drafts a splendid blueprint of beautiful homeland, which can be achieved by considerable investment in fixed assets. Investment in real estate industry bears the brunt. If new urbanization plan can be accomplished step by step, there must be a great market potential for paint and coating industry, because on China’s rural market, use of paint and coating materials just starts, we can even say, is in its infant stage.

Meanwhile, as people’s pursuit for life grows, individualistic household decoration must be a fashion. Hence, more and more consumers would like to refurbish their home, which becomes a leading trend for home decoration. Construction materials used for refurbishing involves wood paint, coatings for interior and exterior walls, thermal isolation or conservation coatings, floor paint, consumable materials, water-proof coating and so forth. A great market for renovating old houses is taking its shape, where great commercial opportunities underlie. Substantial renovation of old houses deals great momentum for paint and coating market. In this regard, many paint and coating enterprises have been prepared and started to test waters.

Li Funian, invited researcher of China Academy of Management Science reasons that China’s paint and coating industry will be doubled in 5 years. It’s estimated that output value of paint and coating industry of China will reach 600 billion Yuan by 2020.