(Project Manager, Market Research Division, Economic Information Department, CCPIT/CCOIC)
China is the largest developing country with a great popularity and a vast territory. During 30 years' reform and opening-up, China's economy has seen rapid and steady growth. In this process, the thriving of foreign trade, the tidal wave of foreign investment and introduction of advanced foreign technology played important roles.
As the largest promotion authority for foreign trade and investment, China Council for the Promotion of International Trade (CCPIT)/China Chamber of International Commerce (CCOIC) has always been dedicated to the development of Sino-foreign economy and trade. China Business Guide is one part of our promotion series. It is regularly edited and published to introduce China's foreign economy and trade as well as business environment to commercial and industrial circles at home and abroad. China Business Guide has won wide popularity since its first edition in 1996.
From 2008 on, we released five sub-volumes for China Business Guide including Machinery, Automobile, Textile, Electronics Information and Mining, which mainly presented their latest developments in China. In 2009, we added another five sub-volumes including Light Industry, Building Materials, Logistics, Energy and Aerospace about the latest situation of these five industries. We have so far introduced the developments of ten major industries in China's traditional industrial economy to the world in English version so that the global business circles can have a better understanding about the development of China and the great changes of its major industries and sectors.
China will gain more vitality in the transform. China means new opportunities to everybody who pays close attention to China's economy. I hope China Business Guide sub-volume series will further help business circles at home and abroad.
China Council for the Promotion of International Trade
China Chamber of International Commerce
Chairman of China National Light Industry Council
Sept. 3rd, 2009
Published by China Council for the Promotion of International Trade and China Chamber of International Commerce, Light Industry Volume of China Business Guide is an important approach to providing a systematic and all-round introduction of the development of China’s light industry at present, and it also helps business partners at home and abroad gain a wider knowledge of business environment and prospect of the industry.
As one of the volumes of China Business Guide, Light Industry Volume provides an overall introduction of China’s light industry in terms of achievement, development, international position and influence, and policies and regulations concerning investment and operation in the industry.
As one of the key industries in national economy, China’s light industry takes the responsibilities of flourishing market, promoting export, expanding employment and providing services for “Agriculture, Farmer and Rural Area” and plays a decisive role in economic and social development. Light industry is primarily an industry of consumer goods, which are closely interrelated to people’s daily life. Traditionally, China’s light industry is classified into 19 categories, 45 industries and more than 500,000 items of articles, which covers food, paper-making, daily chemicals, leather, home appliances, plastics, ceramics, furniture, stationery and sports articles concerning all aspects of daily life, namely clothes, food, house and transportation.
The rapid development of China’s light industry since the beginning of the new century has led to a notable improvement of scale and capacity of enterprises, the constant promotion of competitiveness of the industry, and the remarkable contribution of the industry to expand employment and to benefit agriculture. To cope with the great impact brought about by the global financial crisis initiated in 2008 and to comply with general requirements issued by the State Council in ensuring growth, enlarging domestic demand and implementing industrial restructuring, Restructuring and Promotion Program for Light Industry was promulgated on May, 18th, 2009 as the action program for the comprehensive counter-measures to ensure the stable development of light industry, accelerate restructuring and promote industry upgrading. The term for the Program is from 2009 to 2011.
Based on a complete analysis of objective and elaborate data, Light Industry Volume of China Business Guide offers an introduction to the development of China’s light industry as well as its role and position in national economy and makes an analysis of the development and trend of light industry in some countries over the world as well as the global position of China’s light industry. For the sake of providing the readers with a deeper and more complete knowledge of the latest development of China’ light industry, the Volume also makes an introduction of the features of operation of China’s light industries and other related industries in 2008 via a large amount of data and a whole bunch of diagrams. Meanwhile, the recall of the development route of China’s light industry during the recent five years also helps provide an analysis of the situation of China’s light industry in making foreign trade and attracting foreign investment. In compliance with the strategy of “Going Global” advocated by the country, the Volume also introduces the efforts of the industry in this field. Furthermore, there is also an introduction of the leading enterprises in various fields of the industry, which provides readers with richer knowledge about China’s light industry.
The Volume also gives space to the related policies and regulations of the state concerning the development of light industry, including policies on industry development, market supervision, trade and investment, and taxation. Finally, prediction and prospect are also made on the trend, goals and tasks of the development of China’s light industry. Policies and prospects are the two factors of the greatest concerns among foreign investors, so the content of the Volume will play an active and effective role in the communication between players in the industry from all over the world.
The publication of English Version for the Volume makes it more convenient for foreign investors and partners to gain a better understanding of the development situation as well as the prospect of China’s light industry. Under the guidance of policies of industrial restructuring, new developing trend and features are to appear in China’ s light industry, which are sure to provide greater impact on the optimization and upgrading of industry structure. The impact of financial crisis on China’s light industry and the corresponding measures taken by the Chinese government and enterprises are also introduced in the Volume.
As the most comprehensive national industry association in the field of light industry in China, China National Light Industry Council (CNLIC) provides services and holds the management of more than sixty associations, societies and public institutions under the commission of State Property Administration Committee. The major functions of CNLIC include: implementation of investigation and research in the industry, providing comments and recommendations on economic policies and legislation to governments; organizing and implementing statistics of the industry, e.g. collecting, analyzing, research and publishing information of the industry; carrying out statistic investigation in accordance with laws and establishing information network for E-business; participating and making industry plans, making pre-verification and initial screening on projects concerning investment and development, key technological reform and innovation and technical import; reinforcing self-discipline, standardizing activities, cultivating specialized market and maintaining fair competition of the industry; providing consulting service for the protection of knowledge property rights, anti-dumping, anti-subsidy, anti-illegitimate competition and cracking down smuggling; organizing the recommendation of key scientific and technological projects, certification of scientific achievements and the promotion as well as application of the achievements; participating in, making and revising national standards and industry standards, and organizing implementation and supervision of the standards; issuing the information about the industry and the requirements by enterprises, and maintaining the legal right and interest of the industry as well as enterprises; organizing training on talents, techniques and vocational skills. As the most representative institution in the industry, CNLIC, aimed at providing services for the whole industry, plays a significant role of bridging governments and enterprises and makes intensive efforts for the development of China’s light industry by strengthening international communication and cooperation in this field.
Chapter 1 Overview of the Development of China’s Light Industry 1
Chapter 2 Overview of the Development of Global Light Industry 6
Chapter 3 Development Environment Facing China’s Light Industry 13
3.1.1 Economic Environment in China 13
3.1.2 Global Economic Environment 13
3.2.1 Government Comes up with the Light Industry Revival Policy 14
3.2.2 Industry Planning 15
Chapter 4 Analysis on Development of China’s Light Industry in 2008 20
4.1.1 Development of Sub-industries 21
4.1.2 Price Trends of Light-industry Products 22
4.1.3 Import and Export of the Light Industry 23
4.2.1 Overall Scale and Distribution 24
4.2.2 Production and Sales 25
4.2.3 Costs 26
4.2.4 Profit-Earning 27
4.2.5 Operation performance 28
4.2.6 Investment in fixed assets 29
4.2.7 Production and sales by region 29
4.3.1 Overall Scale and Distribution 30
4.3.2 Production and Sales 31
4.3.3 Costs and expenses 32
4.3.4 Profits 33
4.3.5 Operation performance 34
4.3.6 Investment in fixed assets 35
4.3.7 Production and sales by region 35
4.4.1 Overall scale and distribution 36
4.4.2 Production and sales 37
4.4.3 Costs and expenses 38
4.4.4 Profits 38
4.4.5 Operation performance 39
4.4.6 Investment in fixed assets 40
4.4.7 Production and sales by region 40
4.5.1 Overall scale and distribution 41
4.5.2 Production and Sales 42
4.5.3 Costs and expenses 43
4.5.4 Profits 44
4.5.5 Operation performance 45
4.5.6 Investment in fixed assets 45
4.5.7 Production and sales by region 46
4.6.1 Overall scale and distribution 47
4.6.2 Production and sales 48
4.6.3 Costs and expenses 48
4.6.4 Profits 49
4.6.5 Operation performance 50
4.6.6 Investment in fixed assets 51
4.6.7 Production and sales by region 51
4.7.1 Overall scale and distribution 52
4.7.2 Production and sales 53
4.7.3 Costs and expenses 54
4.7.4 Profits 55
4.7.5 Operation performance 56
4.7.6 Investment in fixed assets 57
4.7.7 Production and sales by region 57
4.8.1 Overall Scale and Distribution 59
4.8.2 Production and Sales 59
4.8.3 Costs and expenses 60
4.8.4 Profits 61
4.8.5 Operation Performance 62
4.8.6 Investment in fixed assets 62
4.8.7 Production and sales by region 63
4.9.1 Overall scale and distribution 64
4.9.2 Production and sales 64
4.9.3 Costs and expenses 65
4.9.4 Profits 65
4.9.5 Operation performance 66
4.9.6 Production and sales by region 66
4.10.1 Overall scale and distribution 67
4.10.2 Production and sales 68
4.10.3 Costs and expenses 69
4.10.4 Profits 70
4.10.5 Operation performance 71
4.10.6 Investment in fixed assets 71
4.10.7 Production and sales by region 72
4.11.1 Overall scale and distribution 73
4.11.2 Production and sales 73
4.11.3 Costs and expenses 74
4.11.4 Profits 74
4.11.5 Operation performance 75
4.11.6 Production and sales by region 75
4.12.1 Overall scale and distribution 76
4.12.2 Production and scales 77
4.12.3 Costs and expenses 77
4.12.4 Profits 78
4.12.5 Operation performance 79
4.12.6 Production and sales by region 79
4.13.1 Overall scale and distribution 80
4.13.2 Production and sales 80
4.13.3 Costs and expenses 81
4.13.4 Profits 81
4.13.5 Operation performance 82
4.13.6 Production and sales by region 82
4.14.1 Overall scale and distribution 83
4.14.2 Production and sales 84
4.14.3 Costs and expenses 84
4.14.4 Profits 85
4.14.5 Operation performance 85
4.14.6 Production and sales by region 86
Chapter 5 Development of China's Light Industry in the Past Five Years 88
Chapter 6 External Cooperation of China's Light Industry 121
6.6.1 Coca-Cola´s Acquisition of Huiyuan 125
6.6.2 Johnson & Johnson's acquisition of Dabao 127
Chapter 7 Key Enterprises of China's Light Industry 129
10.3.3 Guiding Catalogue for the Adjustment of Industrial Structure 167
10.4.1 Enterprise Income Tax 170
10.4.2 Corporate Value-added Tax 170
10.4.3 Export Rebate Rate 170
Chapter 11 An Outlook and Forecast on Light Industry 175
Chapter 12 Enterprise Name List in Chinese Machine-Building Industry (Omitted: For more information, please visit CCPIT's website: www.ccpit.org)
Chapter 1 Overview of the Development of China’s Light Industry
As a comprehensive industry with a complete industry chain and full range of sectors, light industry is an important industry for China’s national economy. As a consumption industry, light industry covers those industries related to people’s daily life, imposing impacts and restrictions on many other industries. Both light industry and heavy industry are significant and indispensible components of China’s national economy.
According to the current Classification of National Economic Industries (GB/T 4754-2002) issued by the National Bureau of Statistics of China and the management and statistic coverage of the China National Light Industry Council, light industry includes 19 categories, 72 sub-categories and 137 classes, covering salt mining, processing of food from agricultural products, food production, beverage production, production of leather and fur products, furniture manufacturing, paper and paper product making, production of daily chemicals, plastic products, glass and ceramic products, and metal-made light industry products.
1.1 Overview of the Development of China’s Light Industry
China’s light industry saw a gross output of only 6.16 billion yuan in 1949 when the country was just liberated. The figure reached up to 117.788 billion yuan in 1978 as China introduced the reform and opening-up policies. However, its products were of low grade, low quality and limited varieties, failing to satisfy demands of people’s daily life. The majority of daily necessities were supplied with limited amounts and coupons. In 1978, China witnessed a severe shortage of light industry products. Three point three kilograms of sugar were offered to each people, 10.5 pairs of shoes to every 100 people, 85.1 bicycles to every 10,000 people. Meat, edible oil, fabric and some other daily necessities were available to those with coupons. The market was seeing a severe shortage of light industry products then. The gross output of China’s light industry stood at 3,392.9 billion yuan in 2000, a year-on-year increase of 12.80%. The figure rose to 14,323.5 billion yuan in 2008, 4.2 times of the 3,392.9 billion yuan in 2000. From 2000 to 2008, China’s light industry had witnessed rapid growth.
Figure 1 1 The Tendency Chart of the Development of China’s Light Industry from 2000 to 2008
Unit: 10 billion yuan
China’s light industry had gone through rapid development from 2000 to 2008. Its gross output had averagely increased by 19.62% during the ninth 5-year-plan period. The increasing ration had exceeded from 2003 to 2008. After its accession to the World Trade Organization in November, 2001, China began to be engaged in economic globalization in an all-round way. Light industry was among those competitive industries firstly facing international markets since China’s entry into the WTO. It remained a grim challenge whether it could adapt to new situations and smoothly survive the first five year of transition period. The gross output of light industry stood at 4,335.57 billion yuan in 2002, a year-on-year increase of 15.2%. In 2008, the figure reached up to 14,323.46 billion yuan, a year-on-year increase of 10.7%. Its sales value stood at 13,945.046 billion yuan, a year-on-year increase of 9.5%. From 2002 to 2008, the annual growth of the gross output of light industry had exceeded 20%. The year of 2007 saw a year-on-year increase of 25.70%, and the growth rate fell to 21.00% in 2008.
Light industry is the fundamental industry of China’s national economy, including so many sectors and categories as well as covering all corners of the country. The light industries above designated size are intensively distributed in Guangdong, Shandong, Zhejiang and Jiangsu. The gross outputs of the four provinces rank top four in China, accounting for over 50% of the total output of China’s industries above designated size.
C hina’s light industry includes a large number of sub-industries. In 2008, the enterprises above designated size in the industry of processing of food from agricultural products achieved the largest amount of gross output 233.05 billion yuan, accounting for 24.82% of the total output of light industry. Gross output of the plastic industry stood at 9.68 billion yuan, accounting for 12.52% of the total; food manufacturing industry 77.69 billion yuan, 8.27%. The four sub-industries formed 55.87% of the total output of light industry.