Strict supervision of chemical product safety intensifies globally

In 2025, global regulatory authorities have stepped up supervision of chemical product safety, with stricter standards for hazardous substances, labeling, and traceability—posing new compliance challenges for the industry.

The EU has updated its REACH regulation, adding 25 new substances (e.g., certain flame retardants) to the “restricted list” and requiring full supply chain traceability for high-risk chemicals; enterprises failing to submit updated safety data sheets (SDS) by 2026 will face fines of up to 4% of global revenue. In the U.S., the EPA has expanded the scope of the TSCA Act to cover 500+ industrial chemicals, mandating pre-market safety testing for 80% of new chemical products (up from 50% previously).

Domestically, China has launched a “chemical product safety traceability system” covering 1,000+ hazardous materials (e.g., toluene, hydrogen peroxide), requiring enterprises to embed QR codes in packaging to record production, transportation, and usage data. While these regulations have increased compliance costs (estimated to add 8-12% to production expenses for small and medium-sized enterprises), they have also raised industry barriers—leading to the exit of 15% of low-standard chemical producers in China’s Yangtze River Delta region, consolidating market share for compliant large enterprises.