tailieunhanh - NO PAPER TIGER Subsidies to China’s Paper Industry From 2002-09

Under the reference case scenario, CEF projects that the pulp and paper industry’s energy consumption will continue to be dominated by renewable fuels (primarily biomass) and natural gas, though renewable energy sources will grow at the expense of natural gas, coal, and petroleum as the industry continues to reduce its demand for purchased fuels. Economic energy intensity (energy consumption per dollar value of output) is expected to decrease at the rate of percent per year, and physical energy intensity (energy consumption per ton of production) is projected to decrease at the annual rate of percent per year. Economic. | I E PI BRIEF ING . PAPE R ECONOMIC POLICY INSTITUTE JUNE 2010 BRIEFING PAPER 264 NO PAPER TIGER Subsidies to China s Paper Industry From 2002-09 BY USHA C. V. HALEY TABLE OF CONTENTS Executive Characteristics of China s paper Natural resources demand excess capacity in China s paper Exports imports of Chinese paper paper products. .14 Cost structure prices in China s paper Role of government policy in China s paper Subsidies to China s paper Implications for . Appendix Data methods measurement of Executive summary Since 2000 China has tripled its paper production. In 2008 China overtook the United States to become the world s largest producer of paper and paper products. In 2009 China produced over 17 of the world s total output and consolidated its place as one of the world s largest exporters in this industry. China s rapid rise in the global paper industry has been fueled by over billion in government subsidies from 2002 to 2009. China s paper industry has limited economies of scale or scope. Over 88 of the companies are small and 12 are medium-sized. The top 10 companies in China control about 20 of the total domestic market with the balance spread across a range of small inefficient companies. The industry is geographically fragmented as well operating in 30 provinces. China has no natural competitive advantage in papermaking and lacks the natural resources to fuel the industry. China s forest base is among the smallest in the world per capita. Consequently the country is the largest importer in the world of pulp and recycled paper. Despite global overcapacity China s paper industry has added on average 26 of new capacity every year from 2004. With saturated domestic markets proportionately much smaller per capita than those ECONOMIC POLICY INSTITUTE 1333 H STREET NW SUITE 300 EAST TOWER WASHINGTON DC 20005 in