China's crop protection industry is “going global” in a challenging and transforming landscape

China dominates global crop protection production and exports, especially in generic pesticides. This grip on the market is sustained by cost leadership and operational efficiency through vertical integration and advanced technologies. Today, over 90% of China's crop protection output is exported. Formulated pesticide exports currently surpass those of active ingredients, signaling China's growing innovation capabilities and enhanced global competitiveness.

Despite this strong export momentum, China's crop protection industry is facing mounting challenges. These include slowing global demand, increasingly stringent regulations, rising pest resistance, intensified competition, and substitution threats from biologicals and new crop traits. Moreover, the rising adoption of digital and analytical technologies, such as precision farming, is expected to gradually reduce pesticide usage volumes over the long term. Collectively, these pressures call for leading Chinese companies to pursue strategic shifts beyond traditional original equipment manufacturing (OEM) and export-driven business models.

Many leading Chinese firms are strengthening their global integration through diversified “going global” strategies, including overseas distribution, local formulation manufacturing, and on-the-ground technical support. The suitability of these approaches depends on each company's resources, and many can be pursued in combination to maximize global reach and impact.

However, the journey toward going global is often a bumpy one. In the short to medium term, a pragmatic strategy would be to start with joint ventures or strategic partnerships with trustworthy local players that have proven track records. Full acquisitions should be considered only at a later stage, once Chinese companies have built strong local teams with deep market knowledge, effective risk management, and cultural adaptability.

Ultimately, successful cross-border brand operations represent a strategic milestone in the internationalization of China's crop protection industry, achievable only by a few top-tier firms that consistently invest in global capabilities. This requires a clear long-term strategy aligned with core strengths, a shift from production-centric to user-focused business models, and a resilient supply chain. Innovation in eco-friendly, patent-protected solutions - along with scalable international operations that promote cross-cultural integration and efficient resource allocation - is essential for global success.