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That bill was proposed and withdrawn in 2006, the same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
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.
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, http://www.printexpo.cn/
Coat Expo 2007 (International Coating, Printing-Ink
& Adhesive Exhibition): Guangzhou, June 21-23,
Ad, Print, Pack & Paper 2007: Shanghai,