China Paper Industry Market Research Report

Since the reform and opening up, China's paper industry has developed by leaps and bounds. Especially in recent years, the production capacity of the paper industry has increased year by year, maintaining a rapid growth trend. In the next few years, what are the development prospects of China's paper industry? How do foreign companies flock in, how to deal with more severe market competition?

In 2004, China's paper and paper products industry achieved a total industrial output value of 314.4 billion yuan, a substantial increase compared with 2003, an increase of 24.77%, of which the total industrial output value of the paper industry increased by 23.22% compared with 2003. At the same time of the rapid growth of industrial output value, the total profit of the industry also increased substantially. In 2004, China's paper and paper products industry realized a total profit of 14.1 billion yuan, a year-on-year increase of 20.42%. The data shows that in 2004, China's paper industry has a strong development momentum and the industry has good development prospects.

The survey results show that nearly 80% of people are optimistic about the development prospects of the industry, and believe that China's paper industry will develop rapidly or steadily in the next three years.

In various paper products, the development prospects of offset paper and coated paper are favored, and more than half of them believe that the development prospects of offset paper and coated paper are good.

In addition, the newsprint and packaging paper industries are also considered to have promising industries. 28.7% and 11.6% of respondents respectively believe that newsprint and packaging paper are promising paper products.

In 2001, China joined the World Trade Organization, which not only brought good opportunities for Chinese paper companies to enter the international market, but also faced the severe challenges of foreign companies entering the Chinese market.

After China's accession to the WTO, China's tariff rate has been lowered year by year. Many large foreign paper companies have targeted China's huge market and participated in the domestic market competition. The competition between China's papermaking enterprises and foreign papermaking enterprises is mainly reflected in two aspects:

The focus of competition is mainly reflected in the quality and price of the products.

Large foreign papermaking enterprises are huge in scale, equipment and technology are at the advanced level in the world, and their product quality is generally higher than that of Chinese local enterprises. Today, with more and more attention to product quality, if we improve product quality and enhance market competitiveness, it is a major issue for Chinese paper companies.

According to the survey data, more than 44% believe that the focus of competition between domestic and foreign companies will be on the quality of products.

Product prices are a sensitive market factor. Many foreign companies have rapidly expanded their share of the Chinese market at low prices with their strong financial strength, which has caused many local companies to lose a large number of markets, which has brought tremendous impact to China's paper industry. Although China has won some anti-dumping cases in these years, local enterprises have gained a moment of silence and won the time to strengthen the strength of enterprises and adjust their marketing strategies. However, with the downward adjustment of tariff rates, the influx of foreign companies will be inevitable. A round of price competition will reappear.

According to the survey data, more than 30% of people believe that product prices will be the focus of competition between Chinese companies and foreign companies in the next few years.

Second, competing products are mainly concentrated on Chinese products.

The high technical content of the products and the high added value of the products are often the markets that large paper companies are striving for. Winning the product market will not only increase the visibility of its brand, but also enhance its core competitiveness and achieve higher profit levels. According to the survey data, more than 70% of the industry believe that China Paper will become the main competitive market for domestic and foreign companies.

The domestic paper industry not only faces fierce competition from foreign companies, but also faces many problems.

First of all, strengthen environmental awareness and truly do a good job in environmental protection.

The 16th National Congress of the Communist Party of China clearly proposed a sustainable development strategy. The important point is to develop green industries and reduce environmental pollution and damage. The publicity of environmental protection by the state and local governments has also been gradually strengthened, and relevant laws and regulations have been formulated, and people's awareness of environmental protection has also been improved.

All papermaking enterprises must raise awareness of environmental protection, strictly abide by relevant national laws and regulations, and ban the discharge of industrial sewage. 34% of respondents believe that environmental protection will be the main difficulty faced by domestic paper companies.

Second, continuous reform, improve the enterprise management system, and improve the efficiency of the enterprise market.

China's papermaking enterprises, especially large-scale papermaking enterprises, are mostly state-owned enterprises, and some of the drawbacks of the planned economy still exist. While continuously introducing the world's advanced equipment, China's papermaking enterprises should also learn from foreign advanced management experience, adjust and reform the existing management system and personnel institutions, and continuously improve the market efficiency of enterprises.

Third, actively develop forestry and paper integration projects.

Every year, China imports a large amount of pulp from abroad, especially the original wood pulp is imported.

At present, people from all walks of life hold different views on the integration of forestry and paper. It can be seen from the survey data that many respondents disagreed with the forestry-paper integration project, but more than 58% still support the development of forestry-paper integration projects.

The development of China's forestry-paper integration project can increase the production capacity of China's pulp, change the passive situation of relying on imports, and win the initiative of market competition for China's paper industry.