PDF《Chinese pulp and paper industry: Big》

2010 13 国家聚焦 COUNTRY FOCUS country'

s major facilities have newer machines with better environmental performances. Some market analysts are saying that this policy will actually help industry consolidation and pave the way for even more new capacities in China. The move comes at a time when China'

s paper and board production is at its peak. In fact, China has already overtaken the US as the world'

s largest papermaking country, based on

2009 figures from both countries'

national associations. China'

s total paper and board (P&

B) production grew 8.3% last year to reach 86.40 million tpa, while total P&

B consumption increased 8% to 85.69 million tpa, according to the China Paper Association (CPA). The total output in the US in

2009 totalled 78.385 million short tons, according to statistics from the American Forest &

Paper Association. But per capita consumption is much higher in the US, reaching

266 kg in 2008, according to RISI figures, while the CPA reported a per capita consumption figure of

64 kg for

2009 in China, up 6.3% from 2008. In May this year, Chinese government data showed that the country'

s P&

B production climbed 3.9% to 8.78 million tonnes from the previous month, representing an increase of 11.7% on the year-earlier period. Total P&

B output reached 40.18 million tonnes during January-May, a year-on-year surge of 18.1%. Chinese firms attributed the increase to robust domestic demand particularly in the tissue, packaging grades and newsprint sectors. Tax rebates to hit major exporters Similarly, another recent government policy is likely to rock the industry. A proposal by the Chinese government to revoke a tax rebate may hit some of the country'

s major P&

B exporters. Tax rebates on some exported items outside the pulp and paper industry have just been cancelled. The Chinese Ministry of Finance recently announced the revocation of VAT rebates of 13-14% on

406 exported goods, including steel, rubber, plastics and starch, from July 15. The authorities are considering reducing or removing the value-added tax (VAT) rebate of some 13% following pressure from the US and Europe due to their growing trade deficits with China. Currently, exported P&

B that is made from imported market pulp qualifies for a VAT rebate of 13%. The tax rebate cancellations have been enforced in a bid to alleviate global pressure regarding the Chinese currency'

s appreciation. Study says rapid growth is due to unfair subsidies A new study from the US-based think-tank Economic Policy Institute (EPI) said that massive Chinese government subsidies have given China'

s paper industry an unfair competitive advantage that has helped fuel the industry'

s rapid growth in recent years, contributing to the US'

worsening trade deficit with China........