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BIOFORE
economy. A violent drop in prices would shake the economy
since a significant proportion of consumer funds is tied up
in property.
However, Ali Malassu doesn’t believe that the real estate
bubble will burst.
“The situation has remained under control. The govern-
ment has taken various measures to limit increases in
prices. It has also supported the sector when necessary.”
Good prospects
As a whole, Ali Malassu believes that the situation for the
Chinese economy is rather good – as are its future pros-
pects.
Urbanisation, the growth of domestic consumption, the
gradual rebound of the world economy and the continued
Asian economic integration create a strong foundation for
continued economic growth.
“A slightly slower growth rate will probably contribute
to better allocation of resources and the modifying of
economic structures in the medium term.”
Malassu says that economic growth, the increased
purchasing power of consumers and urbanisation are also
significant to the development of the paper product market.
“The demand for paper products will continue to grow,
although the growth rate has slowed down. There are major
differences in demand depending on the paper product,
customer segment and region in China. The digitalisation
of the media industry will also have its own impacts on the
market for graphic papers.”
Fragmented paper market?
The Chinese paper market is highly fragmented. According
to estimates, there are 3000 companies producing paper
products in China. The 10 largest companies account for
approximately one third of the production capacity of paper
and cardboard.
Source: The Economist Intelligence Unit
Italy
Japan
Germany
Mexico
Indonesia Thailand South Korea