I. basic status of China's packaging industry.

China's packaging industry has been developing rapidly for many years. By 2004, there were 10,868 enterprises in scale and above, and the industrial output value reached 328.3 billion yuan, a year-on-year increase of 17%. Among them, the paper packaging industry completed rmb113.5 billion, up 24.3% year on year. The plastic packaging industry reached 92.9 billion yuan, up 18.6% year on year. The glass packaging industry completed rmb8.9bn, up 4.2 per cent year on year. The metal packaging industry finished 23.1 billion yuan, up 7.8 percent year on year. The packaging and printing industry reached 62.8 billion yuan, up 11.4% year on year. Packaging machinery manufacturing completed rmb17bn, up 8.6 per cent year on year. Packing gross industrial output value in the whole society to output the rate rose from 0.4% in the early 80 s to 2.4% today, 42 primary packaging industry in our country national economy industry, from the early 80 s, the reciprocal of the second jump to 14th, now become one of the important industry of China's economic development. China has become the third largest "packaging power" after the United States and Japan in the world's estimated $600 billion packaging market. Packaging industry in 2004 is the year total retail sales of social consumer goods more than 50000 one hundred million yuan of domestic goods and exports totaled more than $6000 of export commodities to provide supporting services, to protect the products, promote sales, convenient transportation and logistics management, improve product international competitiveness have made outstanding contributions.

During the tenth five-year plan, China's packaging industry to speed up technological progress, the key leading enterprise, adhere to the road of internationalization, actively introduce advanced foreign technology and equipment, packaging industry to improve the overall level of larger, narrow the gap with the developed countries. We have been able to produce most of the modern packaging systems, packaging equipment, packaging materials and packaging products. Corrugated packaging products, plastic woven bags, composite soft packaging, metal barrels of production has been among the world's leading; Packaging materials and packaging machinery began to participate in international competition, export volume increased year by year; The situation of serious damage caused by poor packaging has been largely controlled and improved. Packers has developed from a decentralised industry become a independent relatively complete industrial system, from the production of packaging products, quality and variety of taken together, our country has entered the ranks of "packaging" nation, for our country to become the process of "world factory" to provide the necessary supporting services. It took us more than 20 years to complete the 40 years' development of the developed countries and realize the historic leap of packaging industry in China.

The packaging industry has just converged in the "six or five" period, and the economic development has gradually increased the demand for packaging, which has accelerated the process of packaging industry. During the "July 5" period, packaging industry actively promoted the technological progress of enterprises, introduced some advanced technology and equipment from abroad, and improved the technical equipment level of packaging industry, and continued to grow at a high speed. During the "eighty-five" period, China's packaging industry entered a period of steady development. During the ninth five-year plan, the packaging industry developed continuously, rapidly and healthily. During the "tenth five-year plan", China's packaging industry continued to maintain a faster growth momentum than the national economy. In 2004, the packaging industry in China was the same as the whole domestic economy. Under the influence of national macro-control measures, the growth rate of packaging industry is expected to decrease in 2005.

However, we must be soberly aware that most of the packaging enterprises in China are small and the industry concentration is low. In the world, there are very few packaging enterprises with some influence. Most packaging enterprises are still small and medium-sized processing plants. Some of the main packaging equipment and some raw materials of China's packaging industry are also dependent on imports, of which packaging machinery imported about us $2 billion in 2004; China's packaging machinery industry has been slow to grow. In 2003, the total output value of the industry was only 20.8 billion yuan, accounting for 5.6% of the total output value of packaging industry, which became the main bottleneck affecting the rapid development of packaging industry in China. The high cost of packaging products has a great impact on the competitiveness of commodities. Many enterprises still do not get rid of the extensive operating mode of high input, high consumption, high pollution and low output. The development of packaging industry in China is very unbalanced. The transportation radius of packaging industry, supply and marketing is too large and waste is large, and it does not meet the requirements of the coordinated development of east, west, south, north and central regions. Packaging enterprises have poor technological innovation ability, and they are severely inadequate in packaging entrepreneurs, scientific management and technical personnel, and lack a large number of skilled workers. In the construction of economical society, some products have excessive packaging; The macro-control of packaging production needs to be strengthened, and the regulations concerning packaging are seriously inadequate.

Second, China's packaging industry has a lot of development space.

In 2004, China's GDP reached 13.6515 trillion yuan, an increase of 9.5% over the previous year and the fastest growing year since 1997. China's economy has witnessed a sound development trend of marked acceleration of growth, significant improvement of the efficiency level, a high level of export growth, and continued improvement of the economic structure. The goods is the packaging, food, electronics, medicine, tobacco, such as the sustainable, rapid and healthy development of related industries as the sustained, rapid development of China's packaging industry to provide the necessary premise and strong power.

In the field of food, along with the prosperity and development of commodity economy, the improvement of people's quality of life and life rhythm speeding up, consumers in microwave food, leisure food, frozen food constant demand for more and more big, this trend will accelerate the demand for fast food, convenience food packaging. At the same time, our government has put forward the plan of agricultural industrialization development, focusing on the deep processing of agricultural and sideline products, while the deep processing projects of agricultural and sideline products require a large amount of packaging machinery and packaging materials. The national development and reform commission to food processing and packaging machinery as a priority to the development of food industry in the development of key areas, which will bring to the development of packaging machinery industry broad prospects, a long period of time in the future, is expected to more than 12% annual growth rate of food and packaging machinery.

Dairy and beverage industry has become one of the most growth of the industry in China in recent years, as people increasingly attention to the health and milk drinks products and packaging products emerge in endlessly. At the same time, the technology of aseptic filling technology, beer, milk, PET plastic bottle packaging and other technologies are being favored and adopted by more and more manufacturers.

Electronics industry in 2004 grew by more than 30% of the national economy, our country is now developing industry in the world manufacturing center, to better in front of the green wave international home appliance and electronic packaging, reduce the breakage rate in the process of our country export commodities in the circulation, to improve the quality of packaging products. At present, the government is fully implement the "cleaner production promotion law", drafting, formulate the measures for the administration of the packaging recycling line with the eu's "electronic information product pollution control management method" is officially introduced in not long ago. Haier, changhong, gree, kelon and other well-known home appliance enterprises in China has been committed to the packing of the products to develop in the direction of reduction and lightweight, the demand for new, energy-saving, environmental protection packing materials remain elevated; A large number of domestic appliance enterprises are also testing and testing honeycomb paperboard, pulp moulding, degradable plastics, plant fiber, air cushion buffering and other green packaging materials. Packaging as the main supporting industry of the electronics industry will be accelerated in the next few years.

The industrial added value of the pharmaceutical industry in 2004 was 138.839 billion yuan, a year-on-year increase of 16.92%. With the rapid development of our country economy, people's living standards improve and an ageing population, the increase of medical expense strengthening the development of new drugs, the pace of the medical security system reform to speed up and the expansion of medical insurance for urban residents, pharmaceutical industry will continue to maintain the momentum of rapid growth. In order to strengthen the direct contact with drugs packaging materials and containers of regulation, the state food and drug administration in the past two years successively promulgated standards for 34 national drug packaging materials and containers, 25 pharmaceutical packaging material test method standard, and issued a "notice on strengthening the supervision and administration of Chinese medicine yinpian packaging. In addition, the quality of pharmaceutical packaging materials and the packaging varieties are obviously lower than the international level. In developed countries, pharmaceutical packaging accounts for 30 percent of the value of pharmaceutical products, compared with 10 percent in China. At present, the annual output value of China's pharmaceutical packaging industry is about 15 billion yuan, which can only meet the needs of about 80% of domestic pharmaceutical companies. This has led to the rapid development of pharmaceutical packaging industry in recent years. Experts predict that the next five years will be the rapid development of China's pharmaceutical packaging industry.

On tobacco, in November 2003, my government signed the first international convention on tobacco control in the United Nations, the international convention on tobacco control (FCTC), which became the 77th signatory of the convention. The convention "packaging and labelling of tobacco products" in the clause will be a substantial impact on current tobacco packaging, Chinese tobacco enterprises in November 10, 2006 to conduct a comprehensive and thorough "change" movement. To this end, the tobacco enterprises in China are actively looking for effective countermeasures in the design, packaging materials and printing process. At the same time, the state tobacco monopoly administration in the tobacco industry to actively promote environmental tobacco packaging materials, some technology is relatively mature green tobacco package materials such as vacuum aluminum plating paper was recognized by a growing number of tobacco enterprises.

Japanese products. Supplies are booming in China, development potential and the profit space is very large, the quickening pace of multinational acquisition, causing an inter-bank involved in daily chemical industry, a leader in the industry in the next few years, industry's overall size will be further expanded. In addition, the packaging of domestic Japanese products has become more and more important in fashion trend, and various novel packaging has emerged in endlessly, which has become one of the fastest growing market in China. With the improvement of people's living standard and increasing market demand, the packaging of daily products will be accelerated.

In addition to the attractive domestic market, China's product export market is also bullish. After joining the WTO, the export value of China's main export products increased by 8 billion to 10 billion us dollars each year. The increase of product export will drive the growth of packaging of corresponding products.

To sum up, with the rapid and healthy development of China's national economy, the packaging industry in China has become an industry with great potential for development, which will surely have broad market space.

Third, take effective measures to promote the sustainable and healthy development of packaging industry.

China is currently building a moderately prosperous society with a population of over one billion people, and its GDP will quadruple by 2020. By 2020, China's GDP will exceed 35 trillion yuan by 2020. The packaging industry will reach 900 billion yuan by 2020 according to the current development of water products.

Enhance the level of packaging industry production technology in China and solve the outstanding problems of the packaging industry, in our country, implementation of "large" to "packaging powers" leapfrog development, is our country government, packaging industry associations and enterprises the main focus of the problem, we must take powerful policies and measures, strive to make our country as soon as possible into a high technological content, good economic benefits, low resources consumption, little environmental pollution and resources give full play to the modern industrial packaging.

Improve the overall level of China packaging industry's main strategy is: grasp intensive integration of packaging for small and medium-sized enterprises, to speed up the packaging base construction, improve the level of packaging enterprise management, implement the strategy of "joint development"; We will increase investment in high-tech r&d funds for packaging industries, improve the technological content of packaging enterprises and implement the strategy of "science and technology". Expand the cultivation of high-level personnel, a large number of cultivating professional talents of practical packaging, packaging engineering vocational training, vigorously improve the level of packaging technology and enterprise management personnel, the implementation of "talent strategy"; We will speed up the construction of packaging legislation and standard system, vigorously develop China's green packaging industry, and implement the "green packaging" strategy. We will accelerate the revitalization of packaging manufacturing, strengthen the statistical work of packaging and packaging information, and implement the "key engineering" strategy.

To strengthen the realization of the above objectives and strategic measures to maintain the sustainable, healthy and rapid development of China's packaging industry.