Growing demand for pulp and paper products

Reduce import taxes on some paper products: At the end of December 2022, the Customs Tariff Commission of The State Council announced a series of adjustments to import taxes on a series of products from 2023. This includes temporarily lowering import duties on dozens of pulp and paper products to below the most Favored Nation (MFN) level.

Prospects and opportunities of pulp and paper industry in China

Although the use of paper and pulp has decreased in traditional Settings, especially in the digitalized areas of communications, media, and literature, other recent phenomena have helped offset this decline. For example, the rapid rise of e-commerce and delivery services has increased the demand for corrugated paper and cardboard. Food delivery is a booming industry in China, and demand for plastic alternatives will continue to grow as consumers and businesses become increasingly concerned about the environmental impact.

By the same token, recycling and waste management also present great potential as the country seeks to develop a circular economy. For example, the 14th Five-Year Plan for the development of circular economy aims to increase the utilization rate of waste paper to 60 million tons by 2025.

Companies can also tap into the premium specialty paper market, which continues to show great potential as consumption of mid-to-high-end products grows. High-quality packaging, especially for high-end luxury goods, is highly valued by Chinese consumers, while the cultural tendency to give gifts has further expanded the demand for specialty paper production.

Although China dominates the production of some types of pulp and paper products, certain products are still dependent on imports, especially raw materials such as wood pulp. As a result, foreign producers who have not yet sold in China may want to explore trade opportunities.

Finally, China is also an ideal location to source suppliers of pulp and paper products, given its dominance in certain sub-industries, particularly finished paper products such as coated paper, tissue paper, white board, specialty paper and cardboard.