Printing Industry Gets State Policy Support for Rapid Development

As the 2008 financial crisis fades into the distance, China's economy is slowly recovering. Against the backdrop of an economic upturn, how should the printing industry develop? Where does the future path of the printing industry lie? Is printing still a sunrise industry?

As the CPI rises, the shift in monetary policy is bound to be a key topic at the Central Economic Work Conference. The sharp plunge in the A-share market on the 24th can only be attributed to news of a shift in monetary policy. Fan, a researcher at Hongyuan Securities Co., Ltd., said that the consumer price index (CPI) is expected to turn positive by the end of the year, and that an interest rate hike cycle may begin in the fourth quarter. In this overall environment, how small and medium-sized printing enterprises can secure financing to weather the difficulties has become the issue of greatest concern to printing company managers.

Recently, the Outline of the Plan for the Cooperation and Development of the Tumen River Region in China, approved by the State Council, was officially released to the public. Against the backdrop of responding to the financial crisis, the National Development and Reform Commission issued the Outline of the Plan for Reform and Development of the Pearl River Delta Region (2008-2020). Subsequently, the State Council approved, one after another, seven plans: the Several Opinions on Supporting Fujian Province in Accelerating the Development of the West Coast Economic Zone of the Taiwan Strait, the Development Plan for the Guanzhong-Tianshui Economic Zone, the Development Plan for the Coastal Areas of Jiangsu, the Overall Development Plan for Hengqin, the Development Plan for the Liaoning Coastal Economic Belt, the Outline of the Plan for the Cooperation and Development of the Tumen River Region in China, and the Plan for Promoting the Rise of the Central Region. Faced with a shrinking industry, the printing sector must respond proactively, carry out corporate consolidation, and make good use of current national policies to actively pursue corporate development.

The current state of the printing industry is worrying: the impact of the financial crisis, rising raw material prices, higher labor costs, declining market purchasing power, and setbacks in export business. In the face of the severe macroeconomic situation, China has continued to introduce various favorable policies to help enterprises cope with the crisis. Nine of the policies implemented starting in 2009 directly benefit the printing industry. Moreover, in 2009 China still applied relatively low tariffs to imported printing equipment. This series of measures introduced by the state has played a positive role in the development of the printing industry.

According to the Eleventh Five-Year Plan, by the end of the Eleventh Five-Year Plan period, the gross output value of China's printing industry is expected to reach approximately RMB 449 billion yuan, accounting for about 2.5% of GNP; its printing production and processing capacity will rank among the world's leading positions. In 2010, the overall market growth rate for printed products worldwide is 3%-4%, and the printing industry faces increasing competition and pressure. By 2010, digital printing will have increased from its current 4% share of the total to 14%, with inkjet technology accounting for half of that; by 2015, the output value of digital printing will reach EUR 124.8 billion; and it is expected that by 2020, the overall growth rate of printed products will be between 3% and 4%.

With the development of China's economy and its integration with the global economy, capital is entering China's printing industry at a faster pace. By 2020, about half of all printed products will be produced on digital printing presses. Variable data printing will become the main driving force of the industry.

In the next 10 years, it is believed that, with state support and as indicated by the series of figures above, China's printing industry has promising development prospects.

(Source: China Packaging Network)

— This article is reposted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-362155.html