Analysis on China's packaging and WTO

Analysis of China's packaging and WTO

after China's entry into WTO, there are different challenges and opportunities for different industries. For the packaging industry, we believe that opportunities are far greater than challenges, but we cannot be blindly optimistic, and we must take them seriously

first, China's entry into the WTO is beneficial to China

1. China's "entry into the WTO", especially in the field of dry products, is conducive to foreign investment in China and the export of China's own goods. Driven by these two main driving forces, the GDP of domestic industry will be directly stimulated to have a rapid growth. Then, the demand for packaging will rise, which is a positive and direct opportunity for China's packaging industry

2. From the perspective of world economic integration, the packaging industry is, after all, a labor-intensive industry. The goal of economic BFF in Europe, the United States, Japan and other countries is to produce a large country of 3D printing wires made entirely of recycled plastic. They basically will not invest in a labor-intensive enterprise in China (such as carton factory), and they will focus on industries with high capital intensity and high technology content, Then, our national packaging industry has fewer strong competitors than many other industries (such as electrical appliances industry) after China's entry into the WTO

3. The packaging industry also has a "nearby service" feature. Therefore, in domestic industrial production, the required packaging should basically be produced in the corresponding areas of the country (for example, the paper for cartons in Zhongshan area can be imported from the United States, but it is unrealistic to import cartons even in nearby Thailand)

based on the above three factors, China's "WTO entry" has given China's packaging industry a golden opportunity for development

II. Adverse effects after China's entry into the WTO

1. After China's entry into the WTO, most people are optimistic about China's packaging industry. In terms of the current situation of paper packaging, it can be said that there has been a swarm of new factories (especially in Zhongshan, Shunde and other regions). In this case, the increase of packaging production capacity will be far ahead of the increase of packaging demand in other industries. The emergence of this situation will bring vicious competition in the industry and accelerate the collapse of some packaging enterprises with poor comprehensive competitiveness

2. After China's entry into the WTO, downstream enterprises (such as electrical appliances) served by packaging enterprises are facing strong competitors. In addition to their own efforts, they also very much hope that cooperative manufacturers will cooperate with them to improve the quality, price, service, etc. to an optimal value, and the thermostatic heating device will start to work. In this way, the requirements for packaging enterprises will become higher and higher, and some enterprises that cannot adapt will also accelerate the collapse

3. Some packaging enterprise managers have low quality and a weak sense of crisis, do not focus on the improvement of technology management and capital management within the enterprise, blindly wait, and always hope that the market will develop in a direction beneficial to them. In this way, the enterprise will only slowly decline

4. From the perspective of the characteristics of WTO and the reliability of machine quality, government behavior needs to have a high degree of self-discipline. Similarly, enterprises should also have a high degree of self-discipline, with the exception of production. However, the current situation of packaging enterprises is not so ideal

III. direction of the enterprise

in view of the challenges and opportunities faced by the packaging enterprises summarized above after China's entry into the WTO, how should they deal with them as packaging enterprises after China's entry into the WTO

1. First of all, the enterprise leaders in the packaging industry must change their ideas, establish a high sense of crisis, have a long-term vision, manage the enterprise with standardized systems, have a high degree of self-discipline in the process of enterprise operation, and establish the belief that everything can adapt only through self-improvement. Don't wait blindly

2. Enterprises with poor comprehensive competitiveness should be sold as soon as possible, and never take chances

3. Enterprises with general comprehensive competitiveness should make up their minds to move towards higher cash flow, better equipment and stronger management from the aspects of equipment renewal, technological transformation, management revolution and capital reinjection

4. For now highly competitive enterprises, we should grasp this golden opportunity in time (or we can say that the opportunity of "WTO entry" for Chinese packaging is naturally inclined to such high-quality enterprises), purchase world-class packaging equipment in advance, and use first-class technology and management, so as to make the enterprise itself make great strides forward. Avoid vicious price competition caused by market factors in such high-quality packaging enterprises. Otherwise, they will not see the broad prospects of the packaging market, but will be in a "defensive" state. In this way, they will miss the opportunity brought by China's "WTO entry" package

the above are some views of our company on the opportunities, challenges and responses of Chinese packaging enterprises brought by China's entry into WTO. I hope you can correct me