The global economic downturn has affected almost every industry, and of course, the coatings industry is no exception. China's coatings industry has been developing at a high speed, with new technologies and products emerging one after another, and competition is becoming increasingly fierce, especially for water-based coatings which are in high demand. Industry insiders predict that in 2011, the growth rate of production and sales in the coatings market will remain flat or decline. However, with the support of the Chinese government's proactive policies, the coatings market should regain its momentum for rapid growth in 2012. So, what should the coatings industry do? How can coatings companies take themselves to the next level by understanding the development trends of the global coatings industry and the current coatings market?