11
Printing Industry in Printing Industry in ChinaChina
Present & FuturePresent & FutureCharlesCharles Lo Lo
Print 05Print 05
ChicagoChicago
22
Figures of Interest from 2004Figures of Interest from 2004
No. of printing companies: 94,282 No. of printing companies: 94,282 (1893 more than 2003)(1893 more than 2003)
No. of employees: over 3 millionNo. of employees: over 3 million
Total printing shipments: USD 34 Total printing shipments: USD 34 billionbillion
33
Printing Industry Worldwide : 2004Printing Industry Worldwide : 2004
G-5
• US USD 161 Billion per capita $570
• Japan 75 590
• Germany 20 250
• UK 25 416
• France 24 400
• China 34 20.7
44
China’s Total Printing China’s Total Printing Shipments : 1995-2004Shipments : 1995-2004
79
11 1214
18
2225
29
34
0
5
10
15
20
25
30
35
US$
in
billio
ns
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
55
China’s GChina’s GDP DP :: 1995-2004 1995-2004
727820
900 947 9921081
11761271
1417
1650
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
US$
in b
illio
ns
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
66
Total Printing Shipments Total Printing Shipments :: GDPGDP
1.00%1.10%
1.22% 1.27%1.41%
1.67%
1.87% 1.92% 1.97%2.06%
0%
1%
2%
% 1.00% 1.10% 1.22% 1.27% 1.41% 1.67% 1.87% 1.92% 1.97% 2.06%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
77
China’s GDP Prediction : 2005-China’s GDP Prediction : 2005-20202020
2,260
1,9701,800
1,650
2,100
3,500
2,900
3,7003,900
4,2004,500
4,800
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
US
$ in
bill
ion
s
Billions of U.S. Dollars 1650 1800 1970 2100 2260 2900 3500 3700 3900 4200 4500 4800
2004 2005 2006 2007 2008 2010 2012 2014 2016 2018 2019 2020
88
Foreign Printers with Investments Foreign Printers with Investments in Chinain China
• R.R. Donnelley, Avery Dennison
• Toppan, Nippo, Nishiguchi
• Times Printers, SNP
• Choice, YFY
• C & C, Hung Hing, Astros, New Island, Midas, Starlight, Golden Cup, Wing King Tong, Luk Ka
99
Application RoadmapApplication Roadmap
1 Press and Publication Bureau
2 Foreign Investment Authority
3 Trade and Commerce Bureau
1010
Laws and RegulationsLaws and Regulations• The Law of the People’s Republic of China on
Enterprises with Foreign Investment• The Law of the People’s Republic of China on
Chinese-foreign Equity Joint Ventures• The Law of the People’s Republic of China on
Chinese-foreign Cooperative Enterprises• Regulations on the Administration of Printing
Industry • Interim Provisions on the Establishment of
Printing Enterprises with Foreign Investment • Interim Regulations on Basic Criteria and
Conditions of Printing Business Ownership
• (Go to www.fdi.gov.cn for the English version of these laws)
1111
The 4 Business ModelsThe 4 Business Models
• 1 Forming new joint ventures: R.R. Donnelley, C&C Beijing
• 2 Buying out existing foreign invested printers: R.R. Donnelley, SNP, Times Printers
• 3 Buying controlling shares from a local printer: Choice
• 4 Forming wholly-owned operations (packaging): Shanghai Toppan
1212
Paper Manufacturing and Paper Manufacturing and ConsumptionConsumption
43
7
5065
15
80
0
20
40
60
80
2003 2015
Production Import Consumption unit:million tons
1313
Total Printing Shipments: Total Printing Shipments: A prediction for 2010 & 2020A prediction for 2010 & 2020
2010 Low: USD 58 billion (=2% of GDP) Mid: USD 63.8 billion (=2.2% of GDP) High: USD 69.6 billion (=2.4% of GDP)
2020 Low: USD 115.2 billion (=2.4% of GDP) Mid: USD 123.4 billion (=2.6% of GDP) High: USD 144 billion (=3% of GDP)
1414
OpportunitiesOpportunities
• Strong growth of China’s economy and domestic demand
• China’s world manufacturing base status
• Government policies
• Member of WTO: since 2002
• Beijing Olympics: 2008
• Shanghai World Expo: 2001
1515
US Offshore PrintingUS Offshore Printing
1996 2000 2003 2004
Canada 435M 767M 879M 922M
China 197 348 551 677
Japan 78 115 132 119
Mexico 82 133 117 132
Germany 90 85 81 86
UK 84 85 75 81
Italy 43 55 53 50
Taiwan 33 36 50 47
HKG 47 49 40 43
France 40 57 39 33