China Paper Industry Study Supports AF&PA Findings

A new study released June 30 by the Economic Policy Institute (EPI) on government subsidies to China’s paper industry confirms earlier studies by the American Forest & Paper Association (AF&PA), according to a press release issued by the AF&PA. The AF&PA says its studies found that the Chinese government employs direct and indirect subsidies to support state-owned enterprises, introduce new state-of-the-art technology and build massive new production capacity for the paper industry.
“Today’s study reaches similar conclusions to previous studies by AF&PA and is further evidence that the Chinese paper industry has been able to grow to become the world’s largest paper and paperboard manufacturer and a leading exporter on the basis of substantial government subsidies,” states Donna Harman, president and CEO of AF&PA.”The landmark AF&PA studies identified a range of central and provincial government policy directives and funding aimed at modernizing and advancing the industry’s production capacity and promoting exports. These policies include grants, low-interest loans, debt forgiveness, tax and duty concession for importing new technology and value-added-tax export rebates.”
More information on the AF&PA studies is available at www.afandpa.org.