China Council for the Promotion of International Trade (ccpit) 2009 Preface

China Business Guide – The Light Industry

China Council for the Promotion of International Trade (CCPIT)

2009

Preface

Bu Zhengfa, President of China National Light Industry Council

Sept. 3^rd, 2009

Published by China Council for the Promotion of International Trade and China Chamber of International Commerce, Light Industry Volume of Guidance for Commerce in China 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 Guidance for Commerce in China, 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. According to the traditional division of industries, China’s light industry can be 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, 18^th, 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 Guidance for Commerce in China 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 Abroad” 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 practitioners 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 the bridge between governments and enterprises and makes intensive efforts for the development of China’s light industry by strengthening international communication and cooperation in the field.

Comments on the Development of Light Industry in China

Guo Yongxin

Department of Information Statistics of China Light Industry Council/Assistant of the Director of China Light Industry Information Center

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

Light industry is a key consumer goods industry that meets the requirements of people in clothes, foods, house and transportation. The gradual development of the industry enables it to fully meet the demands in domestic market and to develop into an important international production base for consumer products. Further efforts in strengthening international communication and cooperation in light industry is of great significance to the promotion of the general level of light industry and the leap of China from a big country to a powerful country in terms of light industry.