Subsidies to China’s Paper Industry from 2002-2009
China’s paper industry tripled production from 2000-2010 and increased imports into the U.S. at a 22 percent per year clip, despite having no raw material advantage. How’d this happen? $33.1 billion in government subsidies. The cost? Lots of U.S. jobs.
Resources
International Trade Commission Ruling on China Paper Coated Imports
ITC approved duties on the paper after finding China's subsidies violated international trade rules.
The Takeaways
China’s export-driven paper industry seriously ramped up production between 2000 and 2010, fueled by over $33.1 billion in government subsidies.
China’s production surge came despite having no natural competitive advantage in papermaking. The country is the world’s largest importer of pulp and recycled paper.
The U.S. paper trade deficit with China increased exponentially from 2002-2010. In February 2010, the annualized growth rate of Chinese paper imports into the United States was about 22 percent.