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2022-08-14
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Printing industry: new markets and new opportunities

in the past 20 years, more and more foreign businessmen have transferred their production lines to China and will continue to do so in the future. It can be seen that China is becoming a world factory. In fact, China has become the second largest production and processing base after the United States and Japan. Many of the world's top 500 enterprises have also gradually settled in China, including automobile manufacturers such as general motors, Toyota, BMW and Volkswagen; high-tech companies such as IBM, Motorola, Nokia and Hitachi; supermarket chains such as Wal Mart, Carrefour, IKEA and Jizhi island; catering giants such as McDonald's, KFC, Starbucks and beverage giants such as Coca Cola, Pepsi Cola; biochemical and pharmaceutical giants such as DuPont, P & G Merck et al. 1、 The current situation of FDI (foreign direct investment) in China since the implementation of the opening-up policy in 1979, China has attracted many foreign investors to invest in China. In the past 24 years, the cumulative amount of foreign direct investment has reached 488billion US dollars. In 2004 alone, the amount of foreign direct investment is expected to exceed 60billion US dollars, surpassing the United States for the first time to become the country that attracts the most foreign investment. According to the relevant policies of the Chinese government, most foreign direct investment enters the manufacturing and retail industries. With China's accession to the WTO, the Chinese government has promised the world that it will gradually open the service industry and other markets to foreign investors. 2、 The current situation of China's economic development between 1998 and 1999, when the whole of Asia was surrounded by the financial crisis, China created an amazing GDP (gross domestic product) growth rate, maintaining a growth rate of 5.21% and 4.75% respectively to avoid quality problems, which was still higher than the annual growth rate of other countries in normal years. General Secretary Hu Jintao pointed out at the 2004 Boao Forum Annual meeting that in the 25 years from 1979 to 2003, China's economy grew at an average annual rate of 9.4%, and China's GDP jumped from 147.3 billion US dollars in 1978 to 1.4 trillion US dollars in 2003, becoming the world's sixth largest economic power. However, due to its large population, China is still living a medium standard of living. Its per capita GDP in 2003 was US $1048, ranking 100th in the world. Hu Jintao said that the goal of the Chinese government is to strive to make China's GDP exceed $4trillion by 2020, with a per capita GDP of $3000 and an average annual growth rate of 6.5%. According to the prediction of relevant departments, China's GDP growth rate from 2004 to 2008 will not be less than 8%, so it is not difficult to achieve the goal of tripling. By that time, the purchasing power of the Chinese people will be three times that of 2003, and the education level of the Chinese people will also be greatly improved, thus driving the widespread demand for advertisements and reading materials. 3、 The current situation of China's printing industry it is difficult to estimate the size of China's printing market, because China still lacks effective statistical means for various data of the printing industry. The following data ignores the statistics of printing equipment and paper, and only includes the output value statistics of pre press, printing, post press and printing workflow. 1. The operation of China's printing industry the development of the total output value of China's printing industry from 1995 to 2004 shows that the growth of the printing industry and GDP is not the same, but when the growth rate of GDP is very high, the total output value of China's printing industry is consistent with it. In the past decade, China's printing industry has developed rapidly, from US $6.1 billion in 1995 to US $26billion in 2004. The growth of the total output value of the printing industry is attributed to the rapid improvement of production capacity and the use of high-quality paper and other materials. The share of the total output value of the printing industry in GDP has been growing. In 1995, the total output value of the printing industry accounted for only 0.86% of GDP, indicating that the printing industry lagged behind the development of China's economy at that time. By 2003, this ratio increased to 1.59%, very close to the level of 1.65% in the United States. In many economically developed countries, the total output value of printing industry accounts for 1.5% - 3% of GDP, and China is approaching this level. However, there is a great difference between economically developed countries and China in terms of per capita gross output value of printing. The United States is $550, Britain, Germany and Japan are $407, $264 and $640 respectively, while China is only $20. The comprehensive ability of the printing market in all aspects is also very different. 2. The composition of China's printing industry China is used to dividing the printing market into five parts: prepress, book printing, newspaper printing, packaging printing and other printing. Commercial printing can be arbitrarily classified into any of the four categories, so it is difficult to master. Packaging printing includes the manufacture of cardboard boxes, packaging materials, trademarks, posters and other advertising materials, packaging paper, metal and plastic containers, etc. Other printing includes document printing, data processing and confidential printing. Packaging and printing accounted for a large proportion, accounting for 48% of the total printing volume in 2003, close to US $11billion, while the data of the United States was only 15.8%, which shows that China uses a lot of packaging materials for export products and domestic markets. This trend will continue in the next few years, and the government will further encourage more enterprises to invest in packaging and printing. According to the statistics of the General Administration of publishing, the growth rate of packaging and printing enterprises in the next few years is estimated to reach 10%, while the growth rate of other printing enterprises is only 3%, which shows the large gap. The growth rate of newspaper printing is second only to that of packaging printing, with a total output value of $4.5 billion, accounting for 20% of the total output value of printing; other printing accounts for 13%, accounting for $2.9 billion; book printing accounts for 11%, accounting for $2.6 billion. 3. The scale of China's printing industry has two opinions about the number of Chinese printing enterprises, one is more than 163000, and the other is 92400. In fact, 7000 of the more than 163000 are in the typing, copying and fast printing industries, and 92400 refer to printing and related enterprises. In 2003, there were 9950 enterprises in books, newspapers, magazines, commercial printing and pre press and post press processing, accounting for 11% of the total number of printing enterprises; 31300 packaging and printing enterprises, accounting for 34%; and 51150 other printing enterprises, accounting for 55%. In 2003, the total number of employees in the national printing industry was more than 3 million, with 2000 kinds of newspapers, 9165 kinds of periodicals, and 190000 kinds of books published (including new books, reprints, posters, postcards, calendars, etc.). 4. The ownership structure of China's printing industry, the only state-owned enterprise that existed before the reform, has undergone tremendous changes in the past 25 years. As shown in Figure 6, of the 92400 printing enterprises, only 7000 are still state-owned enterprises, accounting for 8%. Many state-owned enterprises have been transformed into limited companies or joint-stock companies, allowing enterprise managers or employees to hold shares, and even allowing investors outside the enterprise to invest and account for major shares, There were 17000 such new enterprises in 2003, accounting for 18%. Collective ownership and individual ownership have become the main forms of ownership in the printing industry, reaching 24000 and 36000 respectively. The last category is foreign-invested printing enterprises (including those from Hong Kong, Macao and Taiwan), including joint ventures between foreign and mainland owners and wholly foreign-owned enterprises. There are only 2200 such printing enterprises, but most of them are medium to large-scale high-quality printing enterprises, which play an important role in the modern management process of China's printing industry. Bring new ideas in management, quality standards, high technology and various business models. 5. Overseas investment in China's printing industry the largest investors from overseas are Donnelly and Ellie from the United States Denison, relief printing, Nippo and Xikou Youxiang from Japan, time printing and SNP (Singapore national printing and Publishing Group) from Singapore, Fucai and Yongfeng from Taiwan, and printing enterprises such as Zhonghua business, Artus, Lifeng Accor, Qinda, Xingguang, Jinbei, yongjingtang, Lijia and Changxing from Hong Kong. After China's accession to the WTO in December 2001, the government approved 170 foreign-invested enterprises from 2002 to 2003, with a total investment of more than US $1billion. Of the 2200 foreign-invested printing enterprises, most of them built factories in Guangdong Province (about 1600) and Shanghai and its adjacent areas (about 200). 6. Due to the rapid development of coastal areas after the implementation of the opening-up and reform policies, China's regional printing industry belt is taking shape. The two printing centers that attract most foreign investors are the Pearl River Delta and the Yangtze River Delta. Due to its special geographical location adjacent to Hong Kong, the Pearl River Delta has become the most important printing production base in China. According to the statistics of the Hong Kong Printing Association, more than 1400 Hong Kong enterprises have invested in the region, with more than 300000 employees. The total output value of the printing industry exceeds one third of the total output value of the national printing industry, mainly serving the local market and exports. Another printing center is the Yangtze River Delta, which is composed of Shanghai, Jiangsu Province and Zhejiang Province. Centered on Shanghai, the Yangtze River Delta has become a trade and industrial center in the Middle East. The comprehensive output value of the printing industry here is close to that of the Pearl River Delta in the south, and the Yangtze River Delta, like the Pearl River Delta, is attracting more and more investors. What cannot be ignored is the Bohai Rim region, which is the publishing center of the country. There are more than 300 publishing houses, accounting for 40% of the national publishing market. However, compared with the printing industry in the Pearl River Delta and the Yangtze River Delta, the printing industry in this region is relatively backward, and many publishing houses have to take their full-color books to the Pearl River Delta and the Yangtze River Delta for printing. The comprehensive GDP of the Pearl River Delta is 470billion US dollars, accounting for one third of the country, the Yangtze River Delta is 340billion US dollars, accounting for 24%, and the Bohai rim is 360billion US dollars, accounting for 25.4%. Together, the three regions account for 83% of the GDP of the national printing industry, and provide huge business opportunities. 4、 Relevant policies and regulations on foreign investment in China's printing industry 1 China's relevant policies and regulations the State Council of the people's Republic of China promulgated the Interim Provisions on the establishment of foreign-invested printing enterprises on January 29, 2002. Article 3 of the Interim Provisions states that the state allows the establishment of Sino foreign joint printing enterprises engaged in the printing of publications, packaging and upholstery printed matter, and other printed matter, as well as foreign-funded printing enterprises engaged in the printing and business activities of packaging and upholstery printed matter. The fifth point of Article 6 points out that the Chinese investors in the joint venture of Chinese foreign joint printing enterprises engaged in the printing business activities of publications and other printed matters should control or occupy a dominant position, and then they can be output after amplification, filtering and other processing. Among them, the chairman of the board of directors of a Sino foreign joint venture printing enterprise engaged in publication printing business activities should be Chinese, and the members of the board of directors should be Chinese and foreign. Therefore, if foreign investors (including investors from Hong Kong, Macao and Taiwan) want to enter the publishing and printing field, they must first find Chinese partners before applying. This may be a long process, but it is much easier for current packaging and printing, because they can establish fully controlled enterprises. The application procedure for establishing a foreign-invested printing enterprise is as follows: first, apply to the publication administration department (if the investment amount exceeds 50 million US dollars, it must be approved by the General Administration of publication), then go to the foreign investment administration department for filing, and obtain a license closely related to the leading role of leading enterprises, and finally obtain a business license from the industrial and commercial administration department. Before implementation, you should also be familiar with some relevant legal provisions: the law of the people's Republic of China on foreign capital enterprises (issued on October 31, 2000) and the law of the people's Republic of China on Chinese foreign equity joint ventures (1990

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