Sino-U.S. Trade War Formally “stops The War”. Where Will Packaging And Printing And Paper Prices Go?

- May 24, 2018-

Sino-U.S. trade war formally “stops the war”. Where will packaging and printing and paper prices go?

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Finally, after a fierce game of two days and two nights, the new round of negotiations between China and the United States ended. On May 19, China and the United States issued a joint statement on bilateral economic and trade consultations in Washington.

It can be determined that Sino-US trade war, ceasefire! Stop the fight! Do not fight!

It is an important moment for both parties and the world.

It is really "The two sides of the straits can't help but the light boat has passed the Wanzhong Mountain." China and the United States subsequently issued a joint statement. Then, after Sino-U.S. reconciliation stopped the trade war, what impact will it have on domestic paper packaging and packaging printing markets?

Trade war settlement Packaging printing or multiple good

China and the United States issued a joint statement on bilateral economic and trade consultations in Washington on the 19th. The statement reads as follows:

According to the instructions of President Xi Jinping and President Trump, from May 17th to 18th, 2018, the Chinese delegation led by Chairman Xi Jinping’s special envoy and vice-premier Liu He, and representatives from the Ministry of Finance, Mr. Mukuchin, Secretary of Commerce Ross, and trade representatives. The U.S. delegation of members such as Letsigze has conducted constructive consultations on trade issues.

The two sides agreed that effective measures will be taken to substantially reduce the US trade deficit with China’s goods. In order to meet the growing consumer demand of the Chinese people and promote high-quality economic development, China will greatly increase the purchase of goods and services from the United States. This also helps the U.S. economic growth and employment.

The two sides agreed to meaningfully increase the export of US agricultural products and energy. The US will send a delegation to China to discuss specific issues.

The two sides discussed the expansion of manufacturing products and services, and reached consensus on creating favorable conditions for increasing trade in the above-mentioned areas.

The two sides attach great importance to the protection of intellectual property rights and agreed to strengthen cooperation. China will promote the revision of relevant laws and regulations, including the Patent Law.

Both parties agree to encourage two-way investment and will strive to create a fair and competitive business environment.

The two sides agreed to continue to maintain high-level communication in this regard and actively seek solutions to their respective economic and trade issues.

Although this statement is not long, but the amount of information is not small, from which it is not difficult to analyze that there are multiple positive factors for the packaging and printing industry.

1 Export orders are expected to stabilize

Finished products are China's strengths, and service trade is an advantage of the United States. If these two areas continue to expand, the total trade volume between China and the United States will also increase, and the business is really getting bigger and bigger. This is also very beneficial as a supporting packaging and printing industry.

2 Energy Diversification Helps Reduce Manufacturing Costs

Energy is the bloodline of the modern economy. To develop China, it needs to import a lot of energy. China needs a blue sky and gas is even more in short supply. Last year we also broke out the "gas shortage." The United States has agreed to export more energy to China to ensure a diversified supply of energy and ensure the stability of supply.

3 conducive to packaging and printing upgrade to smart manufacturing

According to the agreement, the tariffs on equipment imported from the United States will be greatly reduced, which will help reduce the procurement costs of accessories, accessories, and digital inks in the packaging and printing industry.

4 conducive to employment stability

Reconciliation of trade wars has, to a certain extent, eased the pressure on all industry companies, including the packaging and printing industry, especially those involving foreign capital.

5 conducive to curbing speculation and hype

Sino-U.S. trade is back on track and it is the upstream paper-making industry and the packaging and printing industry in the middle reaches. Packing users in the downstream have regained their confidence in sustainable operations and have eliminated the negative sentiments about the future.

The trend of paper prices is closely related to the "Abolition of the United States"

On May 2, the General Administration of Customs of the People's Republic of China issued the "Notice of the General Administration of Customs on Implementing Risk Early Warning and Supervision Measures on Imports of U.S. Waste Raw Materials." Subsequently, the China Certification and Inspection Group (CCIC) North America Branch also formally suspended the export of waste for one month. certificate. After that, the price of national waste and finished packaging paper soared. In half a month's time, the price of tons of paper rose by 1,000 yuan, an unprecedented rate of increase.

It has been predicted that with the reconciliation of the trade war, the phenomenon of soaring domestic waste paper prices will be eased, the door for imported waste paper will soon be reopened, the price of waste paper will have to be cut, and the price of finished paper will have to be reduced. Such prediction is obviously premature. The key point for the future paper price is the retention or abolition of the “US Waste Policy”.

The two parties’ settlements do not clearly indicate whether the temporary policy will be lifted when the “US Waste Policy” is announced.

After the “19th National Congress”, restricting imported waste has become China’s long-term development strategy. It will be gradually implemented in the next few years. This measure is not aimed at the United States alone. The current interim measures are only accelerating the progress of this pace. .

At the same time, due to the implementation of the “US Waste” stringent inspection policy, the implementation time is May 4 – June 3, during which time the supervision of imported waste paper is still strict, and the amount of waste paper that can be imported is small. Before the temporary policy changes, the prices of waste paper may still maintain upward trend in the short term. In addition, in the long run, the fact that China National Waste has become the most important raw material for papermaking will not change and its status will only become higher and higher. The degree of dependence on foreign waste will become lower and lower. As for the price trend, the relationship between supply and demand will always be fundamental.

All pasts are prefaces.

The United States in the Trump era did bring new variables and challenges to the world; but China in the new era is indeed even more impressive. Today, although the trade war has ended, the Sino-U.S. trade exchanges have experienced a baptism for the Chinese people and have had a far-reaching impact.

We should soberly realize that at present, scientific and technological strength and technological innovation are still in the hands of several large European and American countries. To grasp the right to speak in the international science and technology field, we must still try every means to break through the barriers.

As the Global Times pointed out in its editorials, we have more material and new dimensions in our understanding of national power. We have also become more clear that we have a lot of work to do to rise as a modern power.

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