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Supply side reform or speed up close down backward production facilities in paper industry

Date:2016-7-12

In 2016, China's paper industry is still facing a weak demand, production and sales at the bottom of the operation. Although papermaking industry has passed its peak capacity growth, but weak downstream demand, excess capacity still need digestion phase, the industry situation is not optimistic.

 

At present, the paper industry stock capacity wechat business supply than demand, is still at a higher level. Before 2012, maintaining high GDP growth rate, pulp and paper industry to capacity is urgent, but progress is slow, and after 2012, with GDP growth above 8%, the direct drive market demand downside, paper production capacity to become the industry consensus. Government downgraded to quota to maintain employment taxes and capacity, but the actual papermaking industry to produce energy is much higher than the task order, China supply network that the number of small and medium-sized enterprises above designated size enterprises than decreased from 83.4% in 2011 to 82.01% in 2014.

 

Preliminary forecast industry papermaking industry capacity utilization rate slightly higher than the 70% in 2015, is still in the range, at the bottom of the basic movements of continued stability in 2016.

 

However, as China's governance of zombie companies and to produce information can promote the implementation of the paper industry will have more capacity is accelerated. Recently, the central set up special funds to further advance to capacity. Development and reform commission, said recently that will set up a special fund to go to the placement in the process of production.

 

In addition, the supply side of the reform is in the making, we have reason to believe that, in 2016, the paper industry can and will be a breakthrough. Supply the reform of supply side past life and this life:

 

Reform of the "supply side" was born, the high frequency words as recent high speech. Exactly what is a supply side reform demand side is investment, consumption and export troika, supply side has labor, land, capital, innovation four elements; His supply side structural reforms aimed at restructuring its economy and network structure, the elements to achieve the optimal configuration, improve the quality and quantity of economic growth.

 

Why must carry on the reform of supply side? 7 years since China's economic growth rate decline year by year, but little demand stimulus effect. Demand is only a representation, the mismatch between supply and demand is the essence, thus needs to begin from supply-side reforms.

 

Supply side reform whether there is a micro wto cases first? 70-80 - s of the 20th century, the United States and Britain have been Mired in stagflation, "Reagan economics" and "thatcherism" respectively adopt measures such as tax cuts and state-owned enterprises reform to help the economy out of recession. China's reform of the "supply side" pay more attention to the optimization of economic structure, to avoid potential growth rate fell sharply.

TypeInfo: Trends

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