On How Printing Companies Meet New Challenges of Joining WTO

The WTO is the abbreviation of the World Trade Organization. It is a permanent international organization that is independent of the United Nations. The basic principles and purpose of the organization are to achieve the goal of promoting world trade liberalization through the implementation of market liberalization, non-discrimination and fair trade.

The accession to WTO will bring greater impact on China's industry. What kind of impact it will have on China's printing industry will not only help us catch up with the challenges, but also help us seize the opportunity to develop our country's printing industry. .

I. Influence of China's Accession to WTO on China's Printing Industry

(I) Impact on the printing industry market

Accession to the WTO means that the market is open and the opening of the printing market is inevitable. With further liberalization, China’s printing market share will be redefined, and print information resources will be re-established. The competition for printing talents will become increasingly fierce. Foreign printing companies have long been optimistic about China's printing market, especially China's packaging and printing companies. The country may relax or even cancel restrictions on foreign printing forces. It will expand the export of foreign products to China, and foreign companies will expand investment in China to build factories. Many printing companies in China are unable to compete with equipment, funds, personnel quality, management, and quality. In particular, some large-scale old companies and small and medium-sized printing companies will suffer even more. This will inevitably result in a large number of companies with poor technical equipment, low product quality, which do not operate in accordance with laws and regulations, and which do not operate in accordance with internationally recognized competition laws. This will undoubtedly further exacerbate competition in the domestic market.

(b) Impact on printed materials After joining the WTO, the state will protect books and newspapers that involve spiritual civilization and ideology, but it will be open to books, newspapers, and other materials required for printing. Imports of raw materials such as paper, aluminum and other tariffs fell. 1, the foreign paper tax rate is 5% -6%, China's average tax rate is about 20%, after entering the WTO is expected to drop to 5% - 7%. 2, PS version, ink, blanket, film and other materials will also be reduced due to the reduction of tariffs. With the reduction of raw material prices, the production costs of printing companies will be reduced, and the efficiency of enterprises will be increased, which will be beneficial to product competition and will be beneficial to the development of enterprises.

(III) Impact on Printing Equipment

Accession to the WTO, from the perspective of lowering tariffs, market access, and non-tariff barriers, will facilitate the introduction of equipment and technological innovation in printing companies. According to the relevant documents of the State Council and the General Administration of Customs, domestic and foreign investment enterprises that are encouraged by the national industrialization policy to import equipment are exempted from tariffs and import link adjustment taxes. A tax exemption is imposed on equipment that cannot be produced in the importing country.

At present, China's import tariff on printing equipment is 22%, VAT is 17%, and the effective tax rate is 43%. That is to say, imports of equipment worth US$1 million plus taxes and fees actually cover 1.43 million US dollars. Many printing companies hope to introduce advanced equipment, develop new products, improve product quality, and enhance market competitiveness. However, compared with domestic and imported similar equipment, the price difference is several or even ten times. After the introduction of the equipment, the price of wearing parts (consumables) and spare parts for maintenance is even more striking, especially when the spare parts are compared with the domestic ones, the prices generally differ by more than ten times. Some people estimate that if all imported equipment and spare parts for repairs are used after the import of equipment, then its cost will be almost the same as the profit created by imported equipment. The efficiency of the enterprise will be almost zero, and there will be no more funds to invest in equipment. Transformation. Some people say that printing companies do not engage in technological reforms is "waiting for death," and technological reform is "finding death." After joining the WTO, the above situation is expected to be eased. Not only will the cost of the company's introduction of equipment be reduced, but the management, use, and maintenance costs will also be reduced. The efficiency of the company may increase.

Second, how to meet the challenges of printing companies

For China's printing companies, the opportunity after the WTO is greater than the challenge. The purchase of raw materials and the introduction of new equipment are all beneficial to businesses. The main challenge is competition in the printing market. For a long time, the management of printing enterprises in China has been confusing. All units can do printing companies, and anyone can run a printing factory. These enterprises are state-owned, collective, private, and have separate administrations. They are blooming all over the place, causing over-abundance in printing enterprises. Some companies did not abide by the laws and regulations of the state, engaged in illegal printing, engaged in unregulated competition, and kept prices down. Many businesses lack business, equipment is backward, quality is poor, and the quality and management of personnel are low. It is difficult to survive in the market competition. Faced with China's imminent accession to the WTO, how printing companies can meet challenges, turn challenges into opportunities, and find breakthroughs for survival are questions that people in the industry are serious about. I think that should consider from the following aspects:

(-) Deepen understanding of market economy and study of WTO knowledge

In order to better meet the opportunities and challenges brought by joining the WTO. 1. We should further understand the intrinsic meaning of the market economy and learn relevant laws and regulations and policies. Because the WTO is the product of economic globalization, it is based on a fully developed market economy. 2. Find out why China's accession to the WTO and its accession to the WTO have any impact on our country and what kind of impact it will bring. What rights and obligations the WTO imposes on our country. Those who are good for China's printing industry are those who are unfavorable. Understand the game rules related to the WTO.

(B) establish a sense of competition, improve management, and enhance the competitiveness of enterprises

After joining the WTO, printing companies must not only compete with domestic counterparts but also compete with foreign counterparts, and the market economy will become more open and more intense. Therefore, we must change our concepts as soon as possible, establish a sense of competition, combine the characteristics of our company, change pressure as a driving force, accelerate technological innovation and technological innovation, and adjust product structure. Strengthen scientific management, take advantage of state-owned enterprise reforms and accession to the WTO to realize corporate restructuring and asset restructuring as soon as possible. Raise the level of management, practice hard work, reduce consumption and tap potential, reduce costs, increase labor productivity, and thus enhance the competitiveness of enterprises.

(III) Accelerate the training and introduction of professional talents in management, technology, finance, and law

The competition among enterprises is in the final analysis the competition of talents. The printing industry is a high-tech and intensive industry in China. After joining the WTO, it will inevitably accelerate the introduction of equipment technology and will increase contact, cooperation and competition with foreign counterparts. The introduction of many new management methods, the mastery and application of high, refined, and sophisticated technologies, the understanding and application of new laws and regulations, the understanding and statistics of new capital operation rules, and the update and improvement of financial systems, all of which require people Go to finish. Therefore, accelerating the training and introduction of professional talents in management, technology, finance, and law is an issue that our company should attach great importance to and urgently need to solve.

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