China has become a big production country in the global light industry, but there is still a long way to go compared with world powers in the field. Therefore, we should strengthen international communication and cooperation, accelerate industrial restructuring and hence make China leap from a big country into a powerful country in terms of light industry.
To encourage the industries in the field that rank top in the world in total amount and level of manufacturing technology and to strive to achieve the goal of world power of light industry firstly.
In industries in home appliance, leather, furniture, bicycle, battery, down products and oral cavity cleaning and nursing products, there should be fully vigorous independent innovation systems; mastery of core technology and key technology; capacity for original innovation, integrated innovation, and re-innovation by introducing, digesting and absorbing; a complete use of high-technology to promote innovation in science, technique, equipment and products; the development of products with independent knowledge property right to improve technology content and added value; the development of new products and new types as well as the launching of new brands; the exploration of new market at home and abroad to boost market share, keep them in pace with demands in international market and hence lead the international trend.
To provide support for the industries that are approaching the top level in the world in terms of production and manufacturing technology level and to strive to lay a foundation for the realization of the goal of world power in light industry.
The restructuring of enterprises and products should be accelerated in a variety of industries including papermaking, food, plastics, hard ware, sew machines, lighting, clock and watch, glasses, daily ceramics, daily glass, daily enamel, musical instrument, indoor decoration, toys, stationery and sports products, pen making, salt making and daily articles. Meanwhile, independent innovation and cultivation of independent brands are to be encouraged, and more input and efforts are to be put on R & D as well as on technological reform so as to grasp opportunities and accumulate potential for future development.
To provide support for industries with relative foundation and potential in narrowing the gap between world powers via absorbing advanced technological achievements and making independent innovation.
In the fields of light industry mechanics and equipment, weighing apparatus, daily chemicals, washing products and cosmetics, we should explore and promote capacity for independent innovation, and try to realize the new pattern that is characteristic of independent development, independent research and manufacturing, and independent innovation. We should set the goals of high-technology, high degree of accuracy, high quality and high class, and approach the level of world power in light industry in terms of market share, number of renowned brands, independent knowledge property right and core technology.
To continue our efforts in the protection, inheritance, development and innovation of traditional industries of the nation, push the promulgation of corresponding laws, regulations and policies, and to take active efforts in applying for non-material cultural heritage.
The inheritance and development of traditional industries of the nation concerning arts and crafts, the four treasures of the study (writing brush, ink, paper and ink slab), national musical instruments, folk-custom toys and articles of ethnic groups is not only one of the key components in the development of economy of local characteristics, but also an important content for the protection of national cultural heritage as well as the development of glorious national culture. The inheritance and development are of great significance in promoting the development of national traditional industries, creating the atmosphere of national traditional civilization and pushing the construction of a harmonious society.
To reinforce independent innovation and realize “Innovated by China”
The great promotion of comprehensive capacity of China’s light manufacturing industry during the 30-year reform and opening up, another particular achievement is the title of world No.1 in terms of production of many kinds of light industry products by grasping the opportunities brought about by the transfer of global industry from developed countries to developing countries. However, many high-tech products are still in the pattern of OEM due to the restraint by others in core technology, causing the industry fall into the vicious cycle of “Value of output at home and Profits abroad”.
Up to now, a team of R & D for independent innovation with a combination of manufacturing, learning and research has been formed in light industry, some corresponding institutes as well as basic facilities for scientific research have been established, and there are even key institutes of provincial level or state level in some industries. 40 state-level technology centers with market orientation in the development of new products have been built in the large-size and intermediate-size key enterprises of the industry. The types of light industry products have increased from tens of thousand to hundreds of thousand, diversified and systematic export patterns have been constituted, ISO 9001 quality management system has been implemented in a good number of enterprises, and there have also been a notable promotion in the quality of exported products as well as many internationally renowned brands.
The intensifying economic globalization has brought about severer competition between enterprises, and hence the mastery of core technology has become the key to win the competition. The realization of good and fast development of China’s light industry cannot be without the support of capacity for independent innovation. The report of the 17th Congress of CPC put forward various goals for the construction of an innovation-oriented country, which are also related to industries directly or indirectly. This also indicates that the transfer from “Made in China” into “Innovated by China” has developed into a national strategy.
We should make a complete implementation of the Scientific Outlook for Development in light industry and follow the route of new industrialization. We should strive to improve the innovation system of technology in industries, boost the technical content of products and the capacity for independent innovation of enterprises, and hence strengthen international competitiveness. We should implement reform on traditional industries via advanced and applicable technologies so as to promote the optimization and upgrading of industrial restructuring. We should reinforce fundamental research on the industry and promote the integration of industry into high-technology. We should reform and promote traditional light industries via high technology as well as advanced and applicable technologies in information, biology, environmental-protection, new material and new craftsmanship, implement resource-conservation, environmental protection and cyclic economy, thereby realizing sustainable development of light industry and social economy.
To transit development pattern and to accelerate strategic transformation
The focus of the development of light industry is the transition of growth pattern and the acceleration of industrial restructuring and upgrading. Problems such as extensive economic growth pattern and weak comprehensive capacity in light industry can be described as “Three Lows and Two Highs”, i.e. low added value, low quality and low value as well as high pollution, high and energy consumption. Winning competition in international trade via the “Three Lows” caused a waste of a large amount of energy and resources as well as many trade conflicts, which obviously affected the expansion of light industry products in international market. The intensively increasing cases of anti-dumping oriented at China’s light industry in the global scope also indicate the problem. The constantly increasing trade conflicts and the rising cost in trade have brought about enormous negative effects on the expansion of our light industry products in international market.
Therefore, strategic transformation should be implemented in light industry, and the expansion pattern entitled “Three Lows, Two Highs” must be changed, which is also an essential requirement for the sustained development of light industry. The implementation of the macro-adjustment policy entitled “Protect and Compress” by the state means “Compressing” enterprises and products of high energy-consuming, high pollution, low added value, low quality and low values, encouraging the export of products of high added value, high quality, low energy-consumption and environment protection, optimizing export structure and expanding export, which then finally improve the backward situation of some products that are characteristic of “Three Lows, Two Highs”.
To persist in environment-protection & energy-conservation and to implement sustainable development firmly
The restraining impact from resources, raw materials and water constitute the major factors in supporting the growth of light industry, but the restraining impact of them on the latter is also strengthening. The growing demand with the increase of population as well as economic development will increase the shortage of water, resources and raw materials, and hence the consequent price rise will make direct impact on the manufacturing of light industry. The shortage of key resources and the seriousness of environment pollution have aroused wide concern on clean manufacturing and utilization of waste by governments and the whole society. The conservation of resources and the level in the comprehensive utilization of resources will constitute restraint for the development of light industry.
We have made great progress in environment protection: the great achievements in the control and utilization of waste; the primary success in the control of total emission amount of waste by papermaking, leather and brewing industries, e.g. a sharp decrease of intensity of pollutant emission. However, China is still facing a stern situation in environment, and some industries in light industry are still the major source of emission of pollutants. It is still an arduous task to control pollution in light industry.
We should strengthen the construction of systems of energy-conservation, reduction of energy consumption, water conservation, emission-reduction and resource utilization by firmly complying with related requirements by the State Council; we should make a thorough implementation of related policies of the country, organize industries for the revising and designing of standards on energy-conservation, reduction of energy consumption, water conservation and emission-reduction; we should establish index evaluation systems as well as admission criteria system primarily in papermaking, leather, daily glass and sugar processing industries on the basis of investigation and research by coordinating with related departments of National Development and Reform Committee, with environment protection and scale economy as the breakthroughs, e.g. essential admission criteria for newly-built enterprises, the promotion of advanced clean manufacturing techniques and the emission-reduction of end pollutants for old enterprises; we should also gradually promote the successful experience gained by model enterprises for cyclic economy; we should also eliminate the enterprises that cannot meet the admission criteria as of the deadline.
The establishment of admission criteria system will reinforce the implementation of energy-conservation, consumption reduction and laws in environment protection; accelerate the elimination of backward craftsmanship and technique, industrial restructuring, industrial upgrading, and finally promote the sustainable development of light industry; make contributions to the development of cyclic economy as well as the construction of an innovative, resource-conservative and environment-friendly country.
To establish independent brands and to provide service for high-end international market
Presently, the high-end competition between brands becomes the major form of competition between economies and enterprises in the world. The major problem in the internationalization of Chinese brands in light industry is the export of products under foreign brands. No matter how large the amount of export is, customer resources are controlled by the owners of brands in this pattern. Therefore, there would not be real internationalization of China’s light industry without independent brands.
In general, China is a world power in the production of light industry, but the independent brands of products of China’s light industry are still in an inferior state in international competition. The large amount of exported products of low added value has brought about a series of problems concerning resources, energy-conservation, environment protection, trade conflict. To cope with opportunities and challenges and to accomplish the transition from a manufacturing power into a brand power, light industry enterprises must implement the policy of “Walk out and introduce”, make a full use of internationalized platform; publicize the enterprises via high-quality products and favorable images of the enterprises. The “Ten Brand Exhibitions of China’s Light Industry” appraised by light industry are approaching the levels of top exhibits in the world in terms of pattern, content and management and have gained powerful international influence, constituting an important platform for the publication of the efforts in “Introduce” taken by China’s light industry. China’s light industry will continue to strengthen the cooperation with governments and civil associations of other countries, make a wider implementation of related business activities and cultivate moiré world-class brands of light industry.
To vigorously cultivate industry clusters and to promote growth of regional economy
The feature regions of light industry and industry clusters constitute a new highlight for the development of China’s light industry and have provided success experience for the development of the industry. After ten years of cultivation, there have been more than 150 feature regions and industry clusters in light industry, which contribute approximately 16% of the total output of light industry , offer job opportunities to more than 10 million practitioners, cover 23 industries of leather, furniture, food, pen making, home appliance, lighting, plastic, ceramics, enamel, daily glass, hard ware, presents, glasses, stationery and sports articles, four treasures of the study(writing brush, ink, paper and ink slab), eiderdown, arts and crafts, sewing machine, musical instrument, daily articles, articles for ethnic groups, jewelry and packaging. These industry clusters, which rely on the development of regional economy and motivate the regional economy via one product in the form of “One county for one product”, “One town for one product” or “One village for one product”, have formed complete industries chains, attained remarkable accumulation effects, established regional processing systems, and consequently become the pillar industries that support regional economic development. Some of the industry clusters occupy over 50% of the regional economy, and some even occupy a large share in the same category of products of the whole country and play a decisive role in the same industry of the country. In conclusion, these industry clusters lay a solid foundation for the development of the industries and become a significant source of growth in boosting the development of both regional economy and light industry.
Cultivation and development of feature light industry regions and industry clusters will be reinforced on the basis of development experience, which are mainly implemented via the combination with the optimization of region distribution, encouraging regions with resource advantages to give a better play to the experience in the development of industry clusters, improving construction conditions and business operation, and continuing the transfer of industries.
To strengthen international cooperation and realize win-win situation
It is necessary for light industry to make a full implementation of internationalized strategy and to strengthen competitiveness of the industry. Economic globalization urges us to make a better combination between “Introduce” and “Walk Out”, optimize interactive actions between China and foreign countries to realize win-win cooperation. Secure and high-efficiency opening economic system will help form new advantages in international economic cooperation and competition. The patterns of foreign-oriented investment and cooperation should be innovated, enterprises should be encouraged and supported to implement international operation in R & D, manufacturing and sales, and the cultivation of Chinese multinationals and internationally renowned brands in light industry should be accelerated.
Besides the independent brands in overseas market, it is fairly important for China’s light industry enterprises to establish independent marketing channel network and expand market channel at home and abroad in attaining the goals of higher position and greater profit. It will also help establish a relatively vantage position for China’s light industry in the world economy. Light industry enterprises should be oriented at wider international market and explore diversified export channels, which mean less reliance on a single country or region and the establishment of independent channel system in the country.
Large-size multinational groups have powerful capacity, advanced technology and management, low cost and global distribution of manufacturing and sales networks; therefore they have powerful advantages in international competition. Some large-size enterprises have appeared in light industry, but most of the enterprises are still of small size and intermediate size in general. The cultivation and development of large-size enterprise groups should be focused on the industries with remarkable scale profit, and flagship enterprises in the field will be provided with great support to develop into large-size enterprise groups via restructuring and optimization. Enterprises should be encouraged to establish cross-industry, cross-region, cross-ownership and multinational large-size enterprises and enterprise groups via merging and reform so as to strengthen the competitiveness of the products as well as the enterprises, thereby empowering them to base on domestic market and then make active participation into international competition. Meanwhile, the coordination between intermediate-to-small size enterprises and large enterprises should be supported to achieve resource integration and complementing of advantages, thereby promoting the coordination development of the whole industry to realizing win-win goal.
The enormous achievements realized by China’s light industry in recent years indicate that the key to success is internationalization, which is also an essential way for the complete promotion of the development of the industry as well as for the providing of better service for global consumers. China’s light industry is to strengthen international communication and cooperation, absorb the essence of the global civilization, and walk steadily toward the goal of a light industry power by following internationalization.
Table of Contents
Features of Light Industry and Its Position in National Economy ix
Major achievements in the development of light industry xii
Internationalization of light industry and its global impact xv
Key opportunities and challenges for light industry xv
Prospect and development strategies for light industry xix
Chapter 1 Overview of the Development of China’s Light Industry 1
Overview of the Development of China’s Light Industry 1
Role of Light Industry in National Economy and Social Life 4
Light Industry Serves as One of the Pillar Industries of National Economy 5
Light Industry Is the Foundation to Satisfy Consumption Demands of Residents and the Society 6
Light Industry Is the Major Industry Absorbing Labors for Employment 7
Chapter 2 Overview of the Development of Global Light Industry 2
1.1 Food Industry 2
Plastic Manufacturing 4
Papermaking and Paper Product Industry 5
Household Appliance Manufacturing 6
Leather, Fur, Feather and Down Product Industry 7
Furniture Manufacturing Industry 8
Hardware Industry 9
Other Light Industries 10
Position of China’s Light Industry in the World 12
Chapter 3 Development Environment Facing China’s Light Industry 15
1.2 Economic Environment 15
Policy Environment 18
3.17 Technical Environment 26
Chapter 4 Analysis on Development of China’s Light Industry in 2008 28
4.1 Overall Situation of the Light Industry 29
4.2 Agricultural and Sideline Food Processing Industry 34
4.3 Food manufacturing industry 44
4.4 Beverage manufacturing industry 57
4.5 Furniture manufacturing industry 69
4.6 Paper making and paper product industry 81
4.7 Plastic product industry 92
4.8 Leather, Fur, Feather/Down, and Their Product Industry 107
4.9 Household Appliance Manufacturing 117
4.10 Cultural, educational and sports goods industry 126
4.11 Arts and crafts industry 138
4.12 Bamboo, cane, palm fiber and straw products industry 146
4.13 Daily chemicals manufacturing industry 154
4.14 Salt mining industry 162
Chapter 5 Development of China's Light Industry in the Past Five Years 170
5.1 Agricultural and non-staple food processing industry 170
5.2 Food manufacturing industry 178
5.3 Beverage manufacturing industry 187
5.4 Plastic manufacturing industry 195
5.7 Leather, Fur, Feather/Down, and Their Product Industry 217
5.8 Cultural, educational and sports goods industry 222
5.9 Arts and crafts industry 227
5.10 Household appliance manufacturing industry 230
5.11 Bicycle manufacturing industry 234
5.12 Ceramic products manufacturing industry 237
5.13 Daily chemicals manufacturing industry 240
5.14 Output of other light industry products 245
Chapter 6 External Cooperation of China's Light Industry 247
6.1 Current situation of China's foreign investment in 2008 251
6.2 Foreign investment competition in food and beverage industries 252
6.3 Foreign investment competition in daily chemical industry 253
6.4 Foreign investment competition in household appliance industry 254
6.5 Foreign investment competition in wine-making industry 255
6.6 Typical cases of foreign investment M & A in 2008 256
Chapter 7 Key Enterprises of China's Light Industry 262
7.1 Agricultural and non-staple food processing industry 262
7.2 Food manufacturing industry 264
7.3 Beverage manufacturing industry 268
7.4 Plastics manufacturing industry 271
7.5 Papermaking and paper product industry 273
7.6 Furniture Manufacturing Industry 277
7.7 Leather, Fur, Feather/Down, and Their Product Industry 279
7.8 Household Appliance Manufacturing Industry 281
7.9 Cultural, educational and sports goods industry 284
7.10 Arts & Crafts Products Manufacturing 288
7.11 Other Sectors 289
Chapter 8 Feature Towns of Light Industry in China 290
8.1 The Famous Classic Furniture Town in China-Sanxiang, Guangdong 290
8.2 China's Leather and Fur Garment City-Xinji 292
8.3 China Sports Shoes Production Base-Jinjiang, Fujian 293
8.4 China Stationary City-Ningbo, Zhejiang 295
8.5 Hometown of Chinese Folk Arts & Crafts-Fengxiang, Shaanxi 296
8.6 China Plastic Trading Town-Lecong, Guangdong 298
8.7 China City of Hardware-Yongkang, Zhejiang 298
8.8 China Capital of Kites -Weifang, Shandong 300
8.9 Food City of China-Luohe, Henan 300
8.10 Porcelain Capital of China-Jingdezhen, Jiangxi 302
Chapter 9 China's Light Industry Going Out 303
9.1 Going-Out Strategy of Chinese Enterprises Makes Brilliant Achievement 304
9.2 Chinese Government Issuing Policies to Encourage Enterprises to Go Out 305
9.3 China's Foreign Direct Investment in 2008 307
9.4 China's Light Industry Export 310
Chapter 10 Relevant Policies and Regulations of China's Light Industry 315
10.1 Industrial Development Policies 315
10.2 Market Supervision 323
10.3 Trade and Investment 325
10.4 Tax Policies 350
10.5 Newly-implemented Industry Standards 354
Chapter 11 An Outlook and Forecast on Light Industry 360
11.1 Food and Beverage Industry 360
11.2 Household Appliance Industry 361
11.3 Paper and Paper Product Industry 362
11.4 Furniture Manufacturing Industry 364
11.5 Plastics Manufacturing Industry 365
11.6 Other Industries 366
List of Tables
Figure 3 1 Major Goals for China’s Food Industry during the 11th Five-Year-Plan Period 21
Figure 3 2 major indicators for the development of China's papermaking and paper product industry during the 11th Five-Year-Plan period 23
Figure 4 3 Output Value and Sales Value of China’s Light Industry as well as Their Year-on-Year Growth in 2008 28
Figure 4 4 Growth of the light industry’s output value in 2008 29
Figure 4 5 Analysis of the Light Industry's Total Production Values by Sector in 2007-08 30
Figure 4 6 Price Indexes of the Light Industry in 2008 32
Figure 4 7 Import and Export Volume of the Light Industry in 2008 33
Figure 4 8 Scale of the Agricultural and Sideline Food Processing Industry 35
Figure 4 9 Production and sales of the agricultural and sideline food processing industry 36
Figure 4 10 costs of the agricultural and sideline food processing industry 38
Figure 4 11 Profit-earning of the agricultural and sideline food processing industry 39
Figure 4 12 Operation performance of household appliance manufacturing industry 40
Figure 4 13 Investment in fixed assets of agricultural and sideline food processing industry 41
Figure 4 14 Sales-output distribution of agricultural and sideline food processing industry 42
Figure 4 15 Scale of food manufacturing industry 45
Figure 4 16 Production and sales of food manufacturing industry 47
Figure 4 17 Costs and expenses of food manufacturing industry 49
Figure 4 18 Profits of food manufacturing industry 51
Figure 4 19 Operation performance of food manufacturing industry 53
Figure 4 20 Investment in fixed assets of food manufacturing industry 54
Figure 4 21 Sales-output distribution of food manufacturing industry 55
Figure 4 22 Scale of beverage manufacturing industry 58
Figure 4 23 Production and sales of beverage manufacturing industry 59
Figure 4 24 Costs and expenses of beverage manufacturing industry 61
Figure 4 25 Profits of beverage manufacturing industry 63
Figure 4 26 Operation performance of beverage manufacturing industry 65
Figure 4 27 Investment in fixed assets of beverage manufacturing industry 66
Figure 4 28 Sales-output distribution of beverage manufacturing industry 67
Figure 4 29 Scale of furniture manufacturing industry 70
Figure 4 30 Production and sales of furniture manufacturing industry 72
Figure 4 31 Costs and expenses of furniture manufacturing industry 74
Figure 4 32 Profits of furniture manufacturing industry 76
Figure 4 33 Operation performance of furniture manufacturing industry 77
Figure 4 34 Investment in fixed assets of furniture manufacturing industry 78
Figure 4 35 Sales-output distribution of furniture manufacturing industry 80
Figure 4 36 Scale of paper making and paper product industry 82
Figure 4 37 Production and sales of paper making and paper product industry 84
Figure 4 38 Costs and expenses of paper making and paper product industry 85
Figure 4 39 Profits of paper making and paper product industry 87
Figure 4 40 Operation performance of paper making and paper product industry 88
Figure 4 41 Investment in fixed assets paper making and paper product manufacturing industry 89
Figure 4 42 Sales-output distribution of paper making and paper product industry 90
Figure 4 43 Scale of plastic product industry 93
Figure 4 44 Production and sales of plastic product industry 96
Figure 4 45 Costs and expenses of plastic product industry 98
Figure 4 46 Profits of plastic product industry 101
Figure 4 47 Operation performance of plastic product industry 103
Figure 4 48 Investment in fixed assets of plastic product industry 104
Figure 4 49 Sales-output distribution of plastic product industry 105
Figure 4 50 Scale of Leather, Fur, Feather/Down, and Their Product Industry 107
Figure 4 51 Production and sales of leather, fur, feather and down product industry 109
Figure 4 52 Costs and expenses of leather, fur, feather and down product industry 111
Figure 4 53 Profits of leather, fur, feather and down product industry 112
Figure 4 54 Operation performances of leather, fur, feather and down product industry 114
Figure 4 55 Investment in fixed assets of leather, fur, feather and down product industry 115
Figure 4 56 Sales-output distribution of leather, fur, feather and down product industry 116
Figure 4 57 Scale of household appliance manufacturing industry 118
Figure 4 58 Production and sales of household appliance manufacturing industry 119
Figure 4 59 Costs and expenses of household appliance manufacturing industry 120
Figure 4 60 Profits of household appliance manufacturing industry 121
Figure 4 61 Operation performance of household appliance manufacturing industry 123
Figure 4 62 Scale of cultural, educational and sports goods industry 127
Figure 4 63 Production and sales of cultural, educational and sports goods industry 129
Figure 4 64 Costs and expenses of cultural, educational and sports goods manufacturing Industry 131
Figure 4 65 Profits of cultural, educational and sports goods manufacturing industry 133