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The transfer of many industries from China to the central and western regions, coupled with China's provision of low-level living assistance to impoverished areas, may further exacerbate the difficulties in recruitment and employment in the Pearl River Delta and Yangtze River Delta regions. National policies favor other sectors, with substantial investment in infrastructure and cultural industries, making it difficult for industrial enterprises to obtain funding. More concerning is the impediment to exports; currently, the United States is using various means to resist various products exported from China, significantly impacting China's paper packaging industry.

Data shows that since April 2011, China's paper box production has remained essentially flat compared to 2010. Particularly after entering the third quarter, year-on-year and quarter-on-quarter growth saw a double decline, with industry prosperity falling to its lowest point since the financial crisis.

According to light industry analysts at Shangpu Consulting, the main reason for the downturn in the paper packaging industry is the impact of the macro-economy. Demand from downstream industries showed a clear decline in 2011, leading to a decrease in orders for paper packaging companies. In addition, the Price of pulp remains high, especially with the slowdown in downstream demand, significantly eroding industry margins. From the second quarter of 2011, the industry's profitability rapidly declined.

Compared to mature markets, the disparity in industrial concentration in China's paper packaging industry is very significant. The industrial concentration of the paper packaging industry in the United States is greater than 70%, in Australia it is 90%, and in Taiwan it is 50%, but in China, it is only 1.5%. The trend of Brand-oriented consumer goods in the downstream paper packaging industry is gradually becoming apparent, and the upward transmission effect of high concentration in downstream industries on upstream packaging suppliers will gradually strengthen. The increase in the concentration of the paper packaging industry is an inevitable trend.

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