Q. Why one should come to China, and how one can enter the market and be successful?

A.China¡¯s Plastics Market

Q. Why one should come to The 6th China Plastics Exhibition & Conference?

A. CHINA-PEC: The Entry Point

Q. Why should my company go to China?

A. It is well reported in the West that with a population of 1.3 billion people, China¡¯s market is moving quickly toward surpassing those of North America and Europe combined. Companies from around the globe are flocking here to buy, sell, manufacture, and create new products. Your company should not be left behind.

Q. What is the current state of China¡¯s plastics industry?

A. China's plastics industry has been growing at double-digit rates annually since 1996, and that rapid
growth will continue in the next decade. China consumes 48.5 pounds of commodity plastics per capita while the world averages 55 pounds. Currently, China makes $ 53.4 billion worth of plastic products. $12.8 billion of them are exported, while it imports $7.1 billion worth of plastic products from overseas.

China's demand structure had changed drastically over the past five years, with the ratio of soft to rigid PVC production evolving from 55:45 in 2000 to 40:60 in 2005. Soft PVC applications in China included film (12% of total PVC output), cable materials (7%), leather (6%), shoes and sole materials (5.2%), while rigid PVC applications included house surfacing products (22.9%), pipes (13.3%), hard flake and calendar grade products (9%).

The largest 700 Chinese processors, all with annual sales exceeding $10 million, represent about half of the total market. The industry's emphasis is on moving toward high-value-added sectors, such as the auto, electronics and medical markets. The construction plans for the countryside, as laid out by the central government in China's 11th Five-Year plan (2006-2010), would require huge amounts of film, pipes and house surfacing products, that would be a big boost to the industry.

The nation's 1,000 domestic equipment manufacturers£¬of which 600 are small£¬cannot meet domestic demand. Imports supply about half of the country's equipment demand, and that level of dependence is unlikely to change in the foreseeable future. About 50% of plastics processing equipment made in China are injection molding machines while extruding and blow moulding machines account for 35% of the market. Various other machines make up the balance.

Q. What is your best advice for a foreign company to succeed in China?

A. Create or maintain your competitive edges in technologies and innovations. While Chinese companies are moving forward quickly, they are largely in the low cost and low tech areas. By keeping up with innovations and shortening the product lifecycle, you will be able to create and maintain clear competitive edges in China. ¡¡More ¡­

Q. What sells best in China¡¯s plastics market?

A. High Tech /High End equipments, machines, machine tools, environmentally friend Materials, etc. have experienced strong demand in China. However, some imported products are too expensive for Chinese buyers. So, many of the producers come to realize that, in a fiercely competitive global economy, they need to optimize their businesses with an integrated global approach, and to cut their costs whenever they can. Those firms with competitive edges in terms of both high quality and low price have been doing great in China.¡¡ More ¡­

Q. How about a company that has protected intellectual property rights, and has no superior technologies to boost its sales?

A. A business exists only because there is a demand for what it does. Most companies come to China for two things: 1) the huge China market; 2) to produce what they do at home at a much lower cost. If you can sharpen your competitive edges with what China has to offer, low cost, but diligent and skilled labors, well developed supporting systems, etc., you may find new markets not only at home, but also in China and around the world.¡¡ More ¡­