The Opportunities and Challenges Brought to China's Packaging and Printing Industry after Entering WTO

1. Outstanding Achievements Obtained During more than 50 years, China's packaging and printing industry has experienced a process from slow development to rapid development, from closed workshops and manual operations to industrialization and modernization.
The packaging and printing industry plays an increasingly important role in the entire national economy. For the country as a whole, packaging and printing is a means of realizing the value of goods and the value of their use.
In the production process, packaging and printing is the last process. In the process of circulation, packaging and printing play an important role in protecting commodities, beautifying commodities, promoting commodities, and storing, transporting, selling, and using commodities. Packaging and printing is a bridge between commodities and production and sales. It plays a non-negligible role in increasing the added value of goods, enhancing the competitiveness of commodities, opening up domestic and foreign markets, and creating foreign exchange for the country.
After more than 20 years of hard work since the reform and opening up, China’s packaging and printing industry has already taken a big step forward in the modernization process, greatly narrowing the gap with advanced countries, and has formed a relatively reasonable production layout, with relatively complete collection of machinery, The electronics, optics, and chemical industries are integrated systems engineering; they can be widely used in light industry, textile, food, beverage, chemical, pharmaceutical, clothing, home appliances, toys and other industries. Packaging and printing companies in coastal areas and large and medium cities already have the ability to compete in the international market.
At present, among 82,189 printing enterprises of various types in the country, there are 20,409 packaging printing enterprises and about 1 million employees. In 2000, the total industrial output value reached 50 billion yuan (about one-third of the total output value of the printing industry). Each year about two-digit growth.
It can be said that since the 1990s, a profound technological revolution has taken place in China's packaging and printing industry. The history of "first-class products, second-class packaging and third-class prices" is over.
Over the years, local packaging and printing companies have seized the opportunity to deepen reforms, focusing mainly on the following seven areas. They have carried out fruitful work and achieved fruitful results. The industry has undergone tremendous changes.
(1) The enterprise reform has been deepened continuously, and the management level has been significantly improved;
(2) The plate making process bid farewell to "lead and fire" and went to "light and electricity";
(3) Grasping technological progress and making major changes in printing technology;
(4) The development of ISO9000 quality system certification has promoted the improvement of product quality;
(5) The growth of security printing products has promoted the development of packaging and printing companies;
(6) Pay close attention to talent development and achieved remarkable results;
(7) Obtaining better social and economic benefits;
Second, the main gap China's packaging and printing industry, although has made great progress, but compared with foreign countries, there is still a large gap.
Mainly in:
The structure of industry and products is irrational and development is uneven. The overall level of printing equipment is backward, high-quality printing equipment, high-grade printing equipment still need to import, fine print processing capacity is insufficient. The regional development is unbalanced. The packaging and printing industry in the east, southeast, and some coastal cities is relatively developed. The development of the packaging and printing industry in the west, southwest, northwest, and small and medium-sized cities lags behind.
The major gaps compared with developed countries and regions are:
1. The country is a big printing country, but it is not yet a printing power. In today's world, the printing and graphic communication industry has become one of the pillar industries for the development of national economies in industrialized countries and regions. In the United States, for example, in 1998, the total output value of the printing and graphic communication industry was as high as 228 billion U.S. dollars (equivalent to a quarter of China's GDP that year), and the industry scale (employees and institutions) was second only to the U.S. catering industry. The printing industry in the image communication industry is one of the largest manufacturing industries in the United States. In 1999, sales exceeded US$155.7 billion. The total number of employees has exceeded 1.173 million, and the total number of companies is more than 50,000.
As in Japan, in 1998, the output value of the printing industry was 8.7482 billion yen (US$93 billion), the number of companies was 43,000, and the employees were 460,000. However, the average production value of enterprises was 200 million yen (equivalent to US$16.66 billion) per capita. It is 18.9 million yen (equivalent to 157,500 US dollars). Printing production is very high.
Hong Kong's printing industry has risen to the top of Hong Kong's manufacturing industry in 1999. It has 3,800 printing companies, plus more than 5,000 related companies and 44,000 employees. In 1999, Hong Kong's printing output value reached 38 billion Hong Kong dollars.
China's printing and equipment equipment industry has not yet become an important pillar industry of the national economy. It is not yet an important part of the information industry. According to preliminary statistics, in 2000, the total output value of China's printing and equipment equipment industry was 150 billion yuan, accounting for 2.5% of the world's printing industry's total output value of 750 billion US dollars, accounting for 1.7% of the country's 2000 GDP (8940.4 billion yuan), accounting for the entire country. In 2000, the industrial added value (3957 billion yuan) was 3.7%.
2. In general, the printing capacity is excessive, the high-end fine printing capacity is insufficient, and the efficiency of enterprises is reduced. And regional development is extremely uneven. Packaging and printing companies have many long-term losses or are at the edge of losses. According to a survey of 107 packaging and printing companies in 2000, 50 profit-making units (per capita taxation between 1,000 and 5,000 yuan) accounted for 47%, and 15 loss-making enterprises accounted for 14%, accounting for 61% of the total. Regional development is extremely uneven. The development of the East, Central and West is uneven. According to relevant statistics in 1999, 10 provinces and cities in the west accounted for 56% of the country's total area, and the population accounted for 23%. The output value of the printing industry (books, packaging, newspapers, and others) accounted for only 16.3%. There is also a wide gap between the internal development of the East, Central and West regions. For example, the output value of the printing industry in Guangdong accounted for 10.1% of the country's total output value and 75% of the total in South China; the output value of the printing industry in Shaanxi accounted for 7.1% of the country's total output value and 75.3% of the total in the northwestern region.
3. Low labor productivity As domestic packaging and printing companies are restricted by factors such as scale, processing tasks, and management, labor productivity has a large gap with foreign countries.
China's packaging and printing companies currently have a total labor productivity of around 50,000 yuan, which is based on the 2000 statistics showing a relatively high labor productivity, showing that the average per capita is only 150,000 yuan.
Take Tianjin Global Magnetic Card Co., Ltd., which has the highest profits and taxes among packaging and printing companies in China, as an example. In 2000, the total profit and tax amounted to 247.37 million yuan, and the industrial output value was 41.063 million yuan, and the labor productivity of all employees was only 324,000 yuan.
In the same period, the total labor productivity of the Japanese printing industry was equivalent to RMB 14.1 million (1.66 million in Tokyo) 28 times that of China. If compared with the larger printing companies in Japan, the difference is even greater. Great disparity. For example, the total labor productivity of Da Nippon Printing Co., Ltd. is equivalent to RMB 6.46 million, that of Toppan Co. is 6.467 million, that of a common printing company is 3.2 million, and that of book printing companies is 3.67 million.
Taking the Hong Kong and Taiwan regions as an example, the total labor productivity of the Hong Kong region is 860,000 yuan and that of the Taiwan region is close to 1 million yuan.
The reasons for this situation are mainly the excess of general processing capacity, and the lack of high-end fine printing capabilities, resulting in under-performing tasks for most companies, resulting in unsatisfactory packaging and printing output.
4. The gap in printing equipment is mainly due to its low functionality, low level of automation and intelligent control, and poor stability and reliability. The supply and demand of middle- and low-grade products are unbalanced or oversupply, and high-end equipment still mainly depends on imports.
In 2001, China imported 1.37 billion U.S. dollars worth of printing equipment, an increase of 52% from 901.2 billion yuan in 2000. In 2001, the export value of printing equipment was 39.642 million U.S. dollars, which was 16.6% higher than the figure of 34.05 million dollars in 2000. However, the difference between the amount of imports and the amount of exports is very different; the amount of imports is 30 times that of exports. In particular, the difference between multi-color offset presses and foreign countries is even greater. In the past three years, China's annual offset presses have reached 460 million US dollars. According to statistics, 645 multi-color sheetfed offset presses were imported in 2001, and about 80 domestically-made machines were imported. The market share of imported machines reached 90%.
In addition, if most of the market for mid-range flexographic and gravure printing machines is occupied by foreign equipment, digital printing machines have only just started to develop research in China. Currently, they all rely on imports. All these have seriously affected the technological transformation and development of the packaging and printing industry in China.
5. The gap of printing equipment There are various kinds of printing equipment. The overall gap is incomplete varieties, poor product performance and quality. The high-end equipment still mainly depends on imports, and some equipment is still blank in China.
Taking printing paper as an example, the output of paper and board in China was 30.9 million tons in 2000, second only to the United States (85.5 million tons) and Japan (31.83 million tons), ranking third in the world, with more than 600 product varieties. However, the production of high-grade paper is small, and it still needs to import about 6 million tons of newsprint, coated paper, writing paper and white cardboard each year. Middle and low flexo plates can be produced domestically, high-grade flexographic plates still need to be imported, according to statistics, at present, the domestic demand is 100,000 square meters, about 90% need to import.
The CTP plates required for direct plate making cannot be produced at present in China, and all rely on imports. However, importing one CTP plate requires 90 (excluding 40% duties and value-added tax), while the price of an ordinary PS in China is only It is 30 yuan. Due to the current high price of CTP plate, it seriously affects the application and promotion of direct plate making technology.
Third, the opportunities and challenges brought to the packaging and printing industry Opportunities After China's accession to the WTO, China will integrate into a globally integrated economy and receive multilateral, stable and unconditional MFN treatment. The diversification of the market will bring opportunities to the packaging industry and increase the demand for potential markets.
(1) From the perspective of the domestic market, according to estimates by experts, China's GDP will increase by 2.94% after entering the WTO and will increase the output value of more than RMB 200 billion. With the increase in the production volume of various commodities and the increase in added value, the output value of packaged printed matter will increase accordingly; a large number of foreign-funded enterprises will enter, and the increase in business activities will increase the demand for commercial printing; opening up the financial, insurance, telecommunications and commercial circulation fields, etc. The service industry will also increase the output value of commercial printing, ticketing, and printing; the increase in the export of textiles, household appliances, daily industrial products, textile and apparel products, general machinery and electronic products, and the increase in processing will provide more for the packaging and printing industry. Development Opportunities. Therefore, based on past statistics, it is expected that the future growth index of the printing industry will be 1% to 2% higher than the GDP growth index.
(2) From the perspective of the international market, the number of members of the World Trade Organization has reached 140, and over 90% of world trade is conducted among WTO members. After China's accession to the WTO, China enjoys the results of trade liberalization of WTO members, which is conducive to expanding exports, thereby providing the packaging and printing industry with a broad space for development.
(3) Import tariffs for various imported equipment such as various high-grade papers, inks, plate-making plates, and flexo plates will be gradually reduced, which will help packaging and printing companies improve product quality and reduce production costs. Therefore, it is beneficial to improve the competitiveness of enterprises. For example, starting from January 1, 2002, the average tariff level will drop from 15% to 12%, the average tariff rate for mechanical and electrical products will drop to 9.6%, and the import duty rate for printing machinery from 18% to 22% to 12 % ~ 14.8%, the average decline in 32% to 33% or more, after each year should be lowered, the tariff rate.
It is understood that China has promised that the import tariffs on paper (coating paper, white paper, white cardboard, newsprint, etc.) will be reduced from the current 12% to 25% to 5% to 7%. Each year, the paper industry in China needs to import 550 to 6 million tons of paper, a large part of which is for packaging and printing companies.
In addition, the direct plate materials used for packaging and printing have also been limited in the promotion and use of packaging and printing manufacturers due to the high import prices.
(4) After the accession to the WTO, plate-making equipment, printing equipment and accessories will also have a significant reduction in tariffs. For domestic printing companies, the current localization rate of prepress systems is very low. Most high-speed multi-color offset presses are imported. The reduction in tariffs will undoubtedly benefit packaging and printing companies, the introduction of advanced equipment, and technological transformation. At the same time, the reduction in the cost of importing spare parts and accessories has also reduced the burden on companies.
2. Challenges (1) After China's accession to the WTO, foreign capital has entered China's printing market, especially the packaging and printing industry, and it has become a general trend. In August this year, Article 12 of the State Council's newly promulgated "Regulations on the Printing Industry Administration" has stipulated clearly: "The State allows the establishment of Chinese-foreign joint venture printing enterprises, Chinese-foreign cooperative printing enterprises, and allows the establishment of foreign investment in the printing of packaging and decorating printed matter. enterprise".
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