In This Issue:

• Meet the Staff
• Case Study: Software Packaging Set
• US China Trade War News
• China Recycling
• Case Study: MasterCard
• Upcoming Expositions
  China Printing News & Advice

Where's the Beef? USA-China Trade War heats up...

As most readers know by now, the US government imposed import duties ranging from 10.9 percent to 20.4 percent on coated freesheet from China in March of this year. The move was in response to some US paper manufacturers' accusations in Washington that China provides unfair export subsidies to large paper mills to boost export volume.

The larger context is not one overly concerned with the paper and printing industry, but with the year on year gains to the 233 billion dollar US-China Trade Deficit and accusations by US lawmakers that China artificially deflates the value of the RenMinBi. A summit in Washington two weeks ago between a visiting Chinese delegation led by Vice Premier Wu Yi and a team led by US Treasury Secretary Henry Paulson included demands by President Bush that China should import American Beef and revalue the RenMinBi, but resulted in no major trade agreements and left Senators Charles Schumer and Lindsey Graham avowing to reintroduce proposed legislation that would impose as much as a 27.5% tariff on all Chinese imports.

That bill was proposed and withdrawn in 2006, the same year that former Fed chariman Alan Greenspan, who opposed protectionist measures amidst a stated belief that yuan revaluation would neither help US manufacturing nor create American jobs, retired.

So what is the fuss about? Does China unfairly subsidize exports? Would rapid Yuan revaluation cause a sea change in the trade deficit and other key economic indicators?

Read coverage from the Economist, The Wall Street Journal and Bloomberg

Paper Tiger: China Demand Drives Recovered Paper Market...

In 2006, China collected nine million tons of recovered paper from North America, a figure representing a 15% increase from 2005. The increased demand for scrap paper included approximately 1/3 of North American recovered newsprint.

Largely in response to Chinese demand, the price for scrap paper rose to US$135/ton in February 2007 from a low of US$85 in Summer 2006, before seeing a slight correction in recent months. 6 new China mills set up in 2006, and a planned capacity increase of some 2 million tons in 2007 have analysts predicting a consistently strong demand through 2007.

Increased domestic and international demand for recycling-friendly paper products like corrugated boxes and newsprint have led China, which has weak natural forestry resources, to scour the globe for the raw materials to support this boom. It has also led to the meteoric rise of companies like Hong Kong Nine Dragons Paper (NDGPF), whose CEO Zhang Yin became China's richest individual in 2006, the country's first woman to hold that honor.



Didi Shang

China Printing Solutions welcomes DiDi Shang who became an accountant with CPS in March.

Didi holds a degree in International Accounting from Shanghai Lixin University of Commerce, and worked previously for Gillette, Konica Minolta and Mariani Trading company.

Didi looks after all Accounts Receivable and Accounts Payable, tracking finances and communicating with both clients and suppliers.

She is fluent in English, Mandarin and Shanghai dialect, and after just 3 months with the CPS has earned a reputation as office pixie and taskmaster, bringing both efficiency and ebullience to our daily working lives.

Upcoming China Printing Expositions...

Print Expo 2007: Beijing, June 12-16,

Coat Expo 2007 (International Coating, Printing-Ink & Adhesive Exhibition): Guangzhou, June 21-23,

Ad, Print, Pack & Paper 2007: Shanghai, July3-6,
+1.877.CPS.3933 +1.314.266.0741 +44.(0)20.7193.0741 +61.(0)3.9018.5729
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