CHINA
Introduction
The Chinese printing industry has benefited from China’s rapid economic growth. With its population’s rising standard of living, the Chinese printing industry is expected to adopt the latest technologies and more effective ways of serving its domestic customers. These will offer new opportunities for the US suppliers and manufacturers of printing equipment and technologies.
Abstract of Current Status of the Chinese Printing Industry
During the 30 years of China’s market economy reform period (1978-2008), China’s printing industry has grown into one of the world's most dynamic printing markets composed of 102,000 printing enterprises with nearly 3.5 million employees. Its 1978 output value of only $1.47 billion US dollars has grown to its 2008 output value of $70 billion US dollars. The industry has maintained an average annual growth rate of 15% during the period from 2001 to 2008.
Package printing remains the largest sector in the Chinese printing industry, accounting for 32.63% ($155 billion US dollars) of its total output value (2008), with a 10.8% annual growth rate. Book printing and newspaper printing are in second and third place, with 19% and 12% shares, respectively, of the total industry output.
Import and export of printing equipment and supplies (2008)
Import: $1.7 billion US dollars
Export: $981 million US dollars
New Landscape of the Industry
As a result of preferential policies and geographic advantages, China’s printing market concentration is moving from centralized large regions along coastal areas and major cities towards one that is micro and regionalized. While the three regions of the Pearl River Delta (38%), the Yangzi River Delta (33%) and the Bohai Bay Region (17.3%) still hold the most establishments, the Western (8.3%), the Northern (8.8%) and the Central Regions (8.8%) have shown noticeable growth.
The Pearl River Delta region, centered in its capital city of Guangzhou, has been established as an export-oriented printing base, where 33% of the region's printing business is directly from Hong Kong, Macao, Taiwan and overseas. Obviously this region was the area most hit by the current global financial crises.
The Yangtze River Delta region has Shanghai as its hub and is the area with the most comprehensive strength, because its unique economic status with a full range of printing services. It is oriented to domestic customers.
The Bohai Rim region, centered in Beijing, is a printing industry base characterized by publication printing. The region is rich in publication resources, boasting more than forty percent of all the nation’s publishing establishments.
The gross printing output value in these three regions has reached $44.1 billion US dollars annually, accounting for 70% of the national gross output value. In 2009, 76 companies from these regions made it to China’s Top 100 Printing Enterprises list.
Now and the Future
Starting in the fourth quarter of 2008, the manufacturing, import, and export volume of printing equipment and related products experienced its worst freefall since 2006 and brought it down to its 1999 level. The decline bottomed out in the first quarter of 2009 and rebounded in the second quarter.
Directly affected by the global financial recession, printing equipment exports have decreased 37% ($440 million US dollars) and imports have decreased 30% ($826 million US dollars) compared with the same period in 2008.
The impact of the global financial crisis seems temporary. The Chinese printing industry as a whole is still healthy, and showed strong development in the second part of 2009 from strong domestic market demand that benefited from government stimulus policy and a quick shift from export to domestic services. There are bright areas of the market that are expected to lead to more rapid recovery and development of the industry.
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CTP equipment and consumables growth rate: 48.5% (2001- 2008)
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Direct mail printing – fastest growing sector with 81% increase 2007-2008.
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Label Printing - annual growth rate reached 20% in 2008. RFID labeling growth rate of 46% in 2008.
Although it is difficult to predict China's macro-economic environment amid the current financial crisis, there is a general consensus that China's economy will continue to enjoy steady growth for some time to come. In 2008, the per capita GDP output exceeded $3,000 U.S. dollars. By 2010, per capita GDP output is expected to reach $4,400-$5,500 U.S. dollars, as estimated by the Chinese government. The growth of per capita GDP will greatly benefit the printing industry. In addition, government support with vital resources will without question help the Chinese printing industry’s future growth.
CONTACT FOR CHINA
NPES China
Mr. Ya-Ping Zhou, npeszhou@aol.com
Ph: 619.238.4222