China's carbon fiber production capacity has ranked first globally for five consecutive years, but the industry consensus is shifting subtly: from 'how much can we produce' to 'how good can we produce.' The 8th Carbon Fiber Composite Industry Innovation and Development Exchange Conference, held in Lianyungang at the end of June 2026, gathered over 300 academicians, entrepreneurs, and research representatives. The core discussion was no longer about capacity expansion but about breaking through technological bottlenecks and landing high-end applications.
Structural Weaknesses Behind Capacity Advantage
Public data shows that China's carbon fiber capacity is indisputably leading globally, but the localization rate of high-end products—especially aerospace-grade and high-strength, high-modulus carbon fiber—remains insufficient. Experts at the conference pointed out that equipment process bottlenecks and raw material quality stability are two major pain points hindering the transition to high-end production. This means that behind the capacity leadership label, the industry still faces the hidden worry of being 'big but not strong.'
Lianyungang, as a core carbon fiber industrial cluster in China, recently put three world-class high-performance carbon fiber production lines into operation, covering general-purpose, high-strength, and high-modulus categories. This move will significantly enhance the supply of high-end capacity in the region in the short term, but in the long run, without sufficient high-end application orders from aerospace and new energy sectors, capacity release may face downward price pressure.
Technology Route Debate and Supply Chain Collaboration
Another focus of the conference was the path of domestic substitution. Academicians and leading enterprise representatives emphasized that the 'bottleneck' of the carbon fiber industry has shifted from raw material production to carbonization equipment and composite material forming processes. This means that pure capacity investment cannot solve technical shortcomings; it must rely on deep industry-university-research collaboration.
Zhao Junshan, President of the China Composites Industry Association, sent a clear signal during the conference: the industry will focus on high-end, precision, and intelligent development. For buyers, this implies that the quality and stability of domestic high-end carbon fiber supply are expected to improve in the coming years, but short-term attention should be paid to the pace and cost fluctuations of import substitution.
## Regional Industrial Cluster's Siphoning Effect
Lianyungang's industrial agglomeration advantage was further strengthened at this conference. The local area has built a complete industrial chain covering precursor production, carbonization processing, and composite application, with industrial scale and technology level ranking among the top in the country. The achievements release and supply-demand matchmaking activities held during the conference essentially brought research, production, and application sides to the same table, accelerating technology landing.
This regional siphoning effect presents both opportunities and challenges for small and medium-sized carbon fiber enterprises. On one hand, technology spillover and supply chain synergy within the cluster can reduce innovation costs; on the other hand, leading companies, leveraging scale advantages and government support, will further widen the gap with smaller firms.
## Breakthrough Points in High-End Application Markets
The application of carbon fiber composites in aerospace, new energy, and rail transit is key to transitioning from a 'capacity powerhouse' to an 'industrial powerhouse.' Conference participants generally believed that domestic carbon fiber applications in industrial fields such as wind turbine blades and pressure vessels are already relatively mature, but penetration rates in high-end scenarios like aerospace structural parts and automotive lightweighting remain low.
From a price expectation perspective, with continuous capacity release and rising localization rates, medium- and low-end carbon fiber prices may continue to face pressure, while the premium space for high-end products will persist long-term. For foreign trade companies, overseas demand for cost-effective domestic carbon fiber is rising, but attention must be paid to differentiated requirements for product certification and environmental standards in export destinations.
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