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after the new china was founded, the government began planning its economic development, in 1953. after three years of hard work, in may1956, three administrations -- the heavy industry ministry's chemical industry administration, the light industry ministry's pharmaceutical administration and rubber industry administration – were merged to form the ministry of chemical industry. this was an attempt to make the chemical industry leadership leaner and pave the way for new china's chemical industrial development.the spotlight was on at least 10 new chemical projects in the jilin,lanzhou and taiyuan chemical zones, around the north china pharmaceutical plant, and elsewhere, and 156 projects with design and construction assistance from the soviet union and the socialist transformation move spread to private chemical companies.

in l958,in a move to make fuller use of central and local initiatives in the chemical industry, chemical industry ministry moved thousands of cadres, engineers, and technicians from ministry offices and enterprises around beijing down to local areas.by 1963,there were chemical bureaus in provinces, municipalities, and autonomous regions, and chemical design institutes, research institute, prospecting units, construction units, colleges, and an industrial system were being formed. around that time, the chemical industry began preparing prototypes of small and mid-sized companies to produce fertilizers, sulfuric acid, caustic soda,pvc,and other materials, so it could move them to local areas in relation to local conditions.

there was brainstorming and testing done on the synthetic ammonium carbonization process and many small nitrogen fertilizer plants were set up across the country. three mid-sized plants using a chinese design were built – the quzhou chemical plant, wujing chemical plant, and guangzhou nitrogen fertilizer plant, gradually, more mid-sized nitrogen fertilizer plants were set built, and plants that used coal, oil, and gas as raw materials, opening a path to the development of the chemical fertilizer industry based on self-reliance. petrochemicals made their debut at the lanzhou chemical industry co and more advanced technology and equipment for polyvinyl alcohol, vinyl,sand cracking, and ldpe,pp, butanol and octanol came in from japan and western countries.

during the turbulent 10 years of the ‘60s and ‘70s, the chemical industry suffered some serious damage and setbacks, but still managed to make some progress, thanks to the workers' persistence.in 1970,the party central committee and state council decided to merge the coal ministry, oil ministry, and ministry of chemical industry into the ministry of fuels and chemical industry. then, in 1975,the ministry of fuels and chemical industry was dissolved and a coal ministry and ministry of petrochemical industry were established.

around that time, the ministry of chemical industry decided to decentralize 359 companies and institutions and move them to local areas, and small nitrogen fertilizer plants began appearing so fast that each county had one. construction work in the interior of the country was boosted by moving many chemical companies in from the coast or setting up new ones, and the layout of the chemical industry improved.there were 13 new 300,000-t/a-synthetic ammonium, 480,000-t/a or 520,o00-t/a-urea units, and one 300,000-t/a ethylene units added.these enterprises greatly improved china's nitrogen fertilizer and petrochemical production as well as its production technology level.

in march 1978, the ministry of oil &chemical industry was dissolved and the ministry of oil industry and ministry of chemical industry reestablished.in january 1979.the chemical industry ministry's pharmaceutical bureau was renamed the china pharmaceutical industry corp and affiliated with the state pharmaceutical administration. then, in february l983,the party central committee and state council decided to establish the china petrochemical corp (sinopec) and put it in charge of 39 companies that had previously been a part of either the oil ministry, the chemical industry ministry, or the textile ministry. in addition, the chemical industry ministry brought in four 300,000-t/a ethylene units and three 300,000-t/a synthetic ammonium projects.sinopec then either expanded or established seven very 1arge petrochemical companies in the cities of yanshan,qilu,daqing,liaoyang,yangtse,jinshan,and elsewhere, and expanded or built oil refineries in the cities of luoyang,shijiazhuang,guangzhou,gaoqiao and fuzhou. the petrochemical industry's ethylene--a base product production capacity went above 2.4m tons, and the total output of three main synthetic materials was 6.7m tons annually.

around that time, chemical companies were following the decisions of the 11th central committee of the communist party in their reforms and opening up more to the outside world, in line with deng xiaoping's theory of building socialism with chinese characteristics. after the hard work of three 5-year plans – the 6th, 7th, and 8th — the chemical industry had entered a new era of development and began placing priority on reorienting its investment and layout and developing petrochemicals, agrochemicals,basic chemical raw materials, and fine chemicals.

the product mix was also adjusted, the proportion of nitrogen, phosphate, and potash fertilizers improved, and the proportion of concentrated compound in fertilizer increased. after the use of hexachloro-cyclohexane soprocide arid ddt as pesticides was halted in 1983, new pesticides were developed and more efficient, low residual pesticide was used. on average, in the rubber sector, 1,000 new products were put into operation annually. there was also a new policy of chemical revitalization using science and technology, major achievements in dealing with problems in science and technology and research & development,and a complete system of development, production, supply, and popularization and application, with scientific research playing the lead role.

some of the notable achievements came in the increased opening up,larger amount of foreign currencies earned from exports, larger number of overseas-funded enterprises, greater capitalization on foreign funds, and number of enterprises set up in shanghai's pudong, hainan, xiamen, shenzhen, and beihai to help develop the chemical industry in line with the socialist market economy. the chemical industry pushed its companies to change their method of operations, optimize their corporate structure,developed economies of scale, and set up large corporate groups, such as the jilin chemical (group) corp, shanghai tyre rubber (group) corp, and china lucky film group.

in addition, state and local chemical markets were established and, after some ministerial reforms in 1993, the china haohua (group) corp,china united rubber corp, and dongfang fertilizer corp were established. the chemical industry's management and organization were characterized by one narrow management banc of government institutions,and social and economic organizations.

in june 1992, the ministry of chemical industry's party office drew up a strategic plan for the industry, to increase reforms in line with the socialist market economic system, and decided to form the china haohua chemical group co ltd on the basis of the china national chemical construction corp (cnccc), china national chemical supply & sales (group) corp, china national chemical engineering (group) corp (cncec), china national chemical equipment corp, china national new chemical material corp all under the chemical industry ministry's administration. and the nanjing chemical plant was assigned to carry out a "large corporation, large group" strategy. the state council approved the plan on december 31, 1992, and it went into operation in september 1994.　　

from 1996 to 1998, there was an adjustment, reorganization, shutting-down, and merger process where 18 companies were formed and put under haohua corp's control, when the former ministry of chemical industry was restructured. this gave haohua a lot more power. during the same period, the chinese government approved the shift in the haohua corp's position. it went from using loans to replace government appropriations to providing state capital in the chemical industry at the state level and involved 164 chemical comapnies worth 3.13 billion yuan in all.

at the beginning of 1998, the haohua corp severed its ties with the ministry of oil & chemical industry and, after reorganization, was placed under the central committee enterprise working commission's administration.

and, 18 research academies and institutes, formerly under ministry of chemical industry control, were handed over to the haohua corp in 1999 after carrying out the reorganization according to central government policy. haohua thus became the chemical industry's largest enterprise, with the strongest scientific research capacity, with a stronger foundation for the integration of scientific research and production and increased competitiveness.　

during this restructuring process, the former ministry of chemical industry's geology & mining bureau and its subsidiaries were put together to form the china mingda mining & chemical industry corp, which was put under the haohua corp control, in 2001. companies such as the xuanhua chemical industry plant and hebei xinji chemical industry corp were now a part of haohua. that same year, the national planning commission and ministry of finance issued an announcement of a special "replacing government appropriations with loans" fund and operations fund of 1.86 billion yuan, designated state capital for haohua. the haohua corp now had everything it needed to become a large chemical group with integrated scientific research, trade, and finance operations and its own foreign affairs, foreign trade, product franchises and financial management rights.

haohua came up with a program for the "10th five-year plan", in july 2001, and clarified its role as "a large industrial corporation with a scientific and technological orientation, with new materials as main business, and finance and trade as its wings, and with science, industry, trade and finance all integrated". it also laid out the economic goals under the "10th five-year plan".

in 2003, with the incorporation of the hunan yiyang rubber machinery co and guilin rubber machinery factory, haohua's rubber machinery production moved to the forefront of that sector of china. the next year, haohua purchased the hebei zhongyi frp co, ltd, gained a trusteeship of siping lianhua, and became a shareholder in the henan yuhang chemical co. and the shanxi yuanping chemical group corp joined haohua. with better capital operations, a product adjustment, and technological innovation, haohua had increased its competitiveness immensely.

the china national chemical corp was conglomerated by haohua corp and the bluestar corp and began operation in may 2004. a wider development system was designed and the china national chemical information center (cncic), china mingda mining & chemical industry corp, china chemical techno-economics center, china national new chemical materials corp, and china national chemical equipment corp were transferred from haohua to the china national chemical corp.

in 2005, the zigong honghe chemical co was transferred without compensation to haohua and, the same year, haohua became a shareholder in the henan junma chemical corp through capital and stock expansion.

in march 2006, the haohua southern rubber co and the city of guilin government's state-owned assets supervision and administration commission signed a "transfer of property rights" agreement and haohua acquired a 100 stake in the guilin southern rubber co's guilin tire factory, guilin latex factory, and rubber products factory.

in june 2006, the haohua northern corp and tianjin university signed a "letter of intent for reorganization of the tianjin tianda tianjiu sci-tech co, ltd", then, in november 2006, haohua and the henan tire group corp ltd signed a "transfer of state-held shares of the aeolus tire co, ltd" agreement, transferring 100 million shares of the aeolus tire co, ltd that were held by the henan tire group corp ltd to haohua without compensation.