Pulp And Paper Research Institute Of China Cao Lei: Must Face The Challenge Of Foreign Capital

September 24, 2016

Mo Lei Tau

Dr. Cao Zhenlei, born in 1959, Professor, Senior Project Teachers enjoy special government allowances, the new Hundred Talents Project national candidates. South China University of Technology in 1981 received a bachelor’s degree in December 1984 by a master’s degree at the Ministry of Light Industry Research Institute of Pulp and Paper Industry after the Ministry of Light Industry Research Institute (now renamed as the Chinese Pulp and Paper Research Institute) to work 1988 public school students in Canada, the University of Saskatchewan in 1993, a doctorate by the Canadian Institute after the return to work. Pulp and Paper Research Institute of the China, party secretaries, vice president of China Light Industry Group Corporation, China Paper Development Corporation general manager, vice president of China Paper Association, China Paper Association Executive Vice President and Secretary China Federation of Industry Paper Vice President of Chamber of Commerce, China Print And Equipment Industry Association, vice chairman of president.

Chinese Pulp and Paper Research Institute Dr. Cao Zhenlei

An early autumn afternoon in Beijing, we saw a casual outfit of Dr. Cao Zhenlei. This was recognized as the paper industry’s top experts and scholars, to develop national industrial planning a major participant in his life immersed in pulp and paper, in the industry say with absolute. The abundant experience of Shandong Province with his straightforward character explained to us his hope and future of China’s paper industry Worries. In his view, China’s paper-making enterprises may be in adverse conditions has made remarkable achievements, but the face of global competition, face the reality of these unfavorable factors, our national paper companies must adopt a positive attitude treatment of foreign competition, in Swim Learn to swim.

Reporter (hereinafter referred to mind): National Development and Reform Commission has just released “Paper Industry Development Policy”, how do you evaluate?

Cao Lei (hereinafter referred to as TSO): The most important progress is positioned to the paper industry “and the national economic and social development, an important basis for close Raw materials Industries. “We should recognize that forestry resources like oil, Land Is necessary for the state with the same correlation Law To protect the resources and constraints, can not be easily traded. Paper industry development can promote common development of social economy, is the important guarantee.

Note: there are figures showing a substantial increase in exports of China’s paper industry began a “turning point.” How do you think about this phenomenon?

Cao: China to export industrial products to provide high quality low price Wrapper And cardboard, it must have its own paper industry. But China does not have the comparative advantage of developing large-scale paper making, paper industry, therefore the development of the state’s basic orientation is to meet the domestic demand, which is the starting point for formulating the industrial policy. So to be a correct view of exports, the export volume was definitely not a good thing. In fact, the country has limited export of raw materials, in particular, restricted the export of raw materials scarce. In 2005, the state canceled Pulp , Paper and paperboard export tax rebates, the only reservation is the import Paper As raw materials of paper and paperboard export tax rebates. This is because the Government had taken note of the production process of pulp and paper environmental pollution, the Chinese do not have enough water, energy, support for export of paper products.

Reporter: How do you look in recent years, the rapid expansion of foreign-funded enterprises in China?

Cao: foreign-funded enterprises to enter China to promote the development of China’s papermaking industry, it is beyond doubt. In fact, the Chinese paper industry’s rapid rise in recent years, with the reform and opening up access is a big foreign relations, they bring advanced technology, advanced Management , Advanced the idea, led the modernization process of China’s paper industry, making China a very short time become the world’s second largest paper producer. However, we should also see that foreign enterprises to enter China paper also brought a lot of irregular things, we have the attitude towards foreign investment also have a lot of maturity, not a cool place, resulting in a foreign-funded enterprises in China tremendous challenge of the situation. To this challenge, we must face.

Note: paper is a fully competitive industry, with competitive pressure and driving force is not a good thing?

CAO: competition is certainly good news, indeed we have the rapid development in the paper industry from competition. But the problem is competition to have a fair and just environment, to follow the same rules, someone to monitor. Our pursuit of foreign investment over previous years, gave them a lot of preferential policies, therefore, is that a domestic-funded enterprises from unfair treatment. Now the State has been canceled by policy adjustments a lot of unfair policies, but in some places and some people head to foreign investors, “superstition” and to chase hot demand still exists, and can attract a lot of the world’s 500 major performance came in the performance is still . This performance concept is fundamentally changed, or will produce in the domestic-funded enterprises is not a level playing field.

Note: Many business people are calling for fair treatment of the problem. But others believe the situation is not terrible.

Cao: ghastly, terrible to look at it will eventually cause the industry to us what kind of impact. At a minimum, fair and just competition environment is a basic requirement of the market economy. We should see that as Dry cell , Made Paper Mechanical and other industries has been foreign control, the results of our master the core technology industry, upgrading the industrial chain will not be good, but harmful. More importantly, in the case of unfair treatment, some domestic enterprises by foreign capital in various ways to wear the cloak also directly affects the quality of foreign investment, this is not the last time such policies caused. Under this policy, it is easy to form in all aspects of short-term behavior.

Reporter: So now the State proposes to develop faster and better.

Cao: That’s right, this is a very important issue. What is a fast and good? Economic indicators are good, really low-input high-yield companies can receive support and benefits, be called a good development policy and good development environment in the best national economy and the real benefit of human society. So we really want to change the simple performance concept, not into big is necessarily good, nor export growth is necessarily good. We should pay attention to the development of the domestic market, attention to the improvement of domestic demand, encourage economic growth with high quality. Now many of the policies are changing, our development environment is gradually improving, it is very gratifying.

Note: Many Private enterprise Growth gives us a lot of lessons.

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