The hottest regulated glass bottle Market in China

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The regulated glass bottle Market in China has aroused doubts in the industry

on the evening of April 6, the heads of several regulated glass bottle manufacturing enterprises, which account for more than 70% of the domestic output and have the new strengthening characteristics of multi-directional force and multi-layer structure, had their first collective contact with the representatives of the American Kimble group in Qingdao under the organization of the China Pharmaceutical Packaging Association (hereinafter referred to as the packaging Association). This is an extraordinary negotiation. For Kimble, which has been active in China for several years but has never achieved anything, it means that a long-awaited turning point is coming: the Chinese pharmaceutical glass tube market, which has long been controlled by German Schott company, has thrown Hydrangea at it

an emergency report

on April 5, I saw an emergency report in the outsourcing Association. According to the report, "despite the collective opposition of relevant domestic enterprises, Schott insisted on building a factory in Suzhou to produce vials with seriously saturated production capacity in China's market, which has aroused strong opposition from relevant Chinese enterprises... But the company still insisted on building a factory in Suzhou. In view of this situation, we call on relevant departments to pay attention."

in just three months before that, relevant domestic production enterprises had discussed countermeasures for many times and had direct communication with Schott. At the Symposium on March 1, the relevant person in charge of Schott company introduced its plan to build a plant in Suzhou due to serious environmental pollution and hidden dangers of quality and safety in the production and sales of ground bar steel: in July 2006, Schott Suzhou will design, produce and operate 9 production lines, of which 5 lines will produce ampoules, with an output of about 100million pieces/year; Four small bottle production lines with a production capacity of 25million bottles. The final design should reach 17 production lines, including 6 ampoule production lines and 11 vial production lines, with an annual output of 120million ampoules and 70million vials. The products of the new factory are supplied to the high-end markets in China and surrounding countries

Caihong, vice president and Secretary General of China Pharmaceutical Packaging Association, said: "At present, the production capacity of domestic high-grade borosilicate controlled glass bottles has been surplus. If Schott Suzhou production line is put into operation in Suzhou in July this year, its output can meet 70% of the current domestic market demand for such products, while the domestic pharmaceutical packaging market is unlikely to absorb 170% of the output of controlled glass bottles in 2005 in the short term, which will undoubtedly bring a major blow to China's fledgling regulated glass bottle industry." For this reason, baoxiehe enterprise introduced the current production and market situation of controlled glass bottles in China to representative Schott, and suggested that he should objectively analyze the overall risks and benefits of this investment and not establish a controlled glass bottle production plant in Suzhou, China

at the beginning of April, Schott told Baoxie that his Suzhou project would not be stopped for various reasons, and expressed his willingness to conduct joint venture production with Chinese enterprises. As a last resort, the outsourcing Association drafted the above emergency report

small industries raise big questions

"we checked a lot of data and read all the laws and policies related to foreign investment, but we couldn't find a provision that could effectively prevent Schott from entering." Caihong's helplessness is also the helplessness of relevant domestic enterprises. Under the framework of WTO, foreign capital entering and participating in the market competition of the host country is the concrete embodiment of market economy. "We also know that Schott's entry may not be blocked. At the same time, pharmaceutical packaging itself is a small industry, and the impact of foreign capital entry is negligible in the development of the whole national economy. But in my opinion, this is also a matter of vigilance. This shows that foreign capital has begun to penetrate from large industries to small industries. In terms of the rational development of the industry, it is not necessary or suitable to introduce foreign capital. What kind of foreign capital does China need? What should we do How to improve the quality and level of utilizing foreign capital? These issues should not only be clear to all walks of life, but also deserve the attention of local governments. "Cai Hong does not hide his view.

in recent years, foreign direct investment (FDI) The negative effects have been concerned by people. Some experts believe that since the reform and opening up, FDI has indeed played an important role in promoting China's economic development in promoting investment, employment, import and export trade, technological progress and productivity growth. FDI is one of the most important variables to explain China's economic growth miracle in the past 20 years. However, at the same time, the five negative effects of foreign investment can not be avoided, namely, price transfer, technology transfer, monopoly of multinational companies, high cost of attracting investment and environmental pollution. In particular, the blindness of introducing foreign capital in some regions makes this negative impact more obvious

"the pharmaceutical industry is one of the industries in which foreign capital was introduced earlier. After more than 20 years of development, it is time to summarize." Zhang Jing, former director of the market regulation administration department of the State Administration for Industry and Commerce and executive director of the China World Trade Organization Research Association, began to pay attention to the investment and business activities of multinational companies in China 12 years ago. He pointed out: "in some joint ventures, the purpose of the foreign side is only to seize the sales of local enterprises; local enterprises often give up the market, but do not get the real new technology." At present, there are many problems in introducing foreign capital in some places, such as emphasizing quantity rather than quality; Re introduction without repayment; Focus on projects rather than macro planning; Emphasis on foreign investment rather than domestic investment in the same industry; Focus on the project itself rather than the market economic order; Emphasis on "bringing in" rather than "going out", etc. "Therefore, we must be cautious when introducing new foreign-funded projects." Zhang Jing emphasized

so, what kind of situation does short's project belong to? It is understood that at present, the regulated glass bottle industry is a particularly energy dependent industry. Taohong, the head of Yingkou Hongli glass products Co., Ltd., told that it was precisely because of the energy problem that many glass bottle manufacturers had to often "move". "Several enterprises in Luoyang had to move to Puyang because of lack of energy." Tao Hong's company also moved from Panjin to Yingkou in order to "catch up" with natural gas. Caihong said, "as for Schott, there are also many questionable aspects of his investment." First of all, can Schott bring advanced technology? In recent years, Schott has visited almost all glass bottle manufacturers with scale in China, but there are more joint ventures and less technology transfer. At the same time, the technical thrust of the current project can be completely solved in China. Secondly, can Schott bring advanced equipment? Schott also admitted that all the equipment in Suzhou factory is idle equipment in foreign factories. Third, will its investment bring "win-win"? Schott said that although the production and transportation costs in Indonesia are lower than those in China, some Chinese pharmaceutical companies must use their products, so they are ready to move the glass bottle manufacturing plant from Indonesia to China. However, according to the outsourcing Association, at present, Schott has only three customers in China, and Schott's bottles are used because the headquarters purchases globally. Schott's annual sales in China is only 1million euros, which is only enough for its management expenses in China, but its pipe sales in China are at least 2million euros. Why choose bottle production? It is obvious to seize China's controlled bottle Market in order to seize its overseas market share. Fourth, Suzhou is a world-renowned historical and cultural city and an energy consuming city. Will the introduction of Schott project increase the pressure on energy conservation and environmental protection

At the beginning of this year, relevant officials of the Ministry of Commerce said that although China has 14 trillion yuan of savings deposits and more than 800 billion US dollars of foreign exchange reserves, it cannot be considered that the pace of attracting investment should be slowed down. In fact, "the scale of China's foreign direct investment is far from enough." This shows that China will continue to actively absorb and introduce foreign capital under the basic national policy of reform and opening up. At the same time, this year's "two sessions" proposed to improve the quality and level of foreign capital utilization, and pay full attention to the threat of foreign capital introduction to China's economic security

Zhang Hongwei, member of the Standing Committee of the CPPCC National Committee, pointed out that China should gradually improve the management system and regulation mode of foreign investment in the introduction and utilization of foreign investment, constantly optimize the structure and quality of the utilization of foreign investment, and reasonably guide the direction of foreign investment. At the same time, we should formulate and improve relevant laws and regulations to regulate the unfair competition of foreign capital in mergers and acquisitions and some industries. By creating a fair, just, open and transparent policy environment and market environment, Chinese and foreign investors can truly realize fair, orderly, competition and cooperation, and ensure the healthy, rapid and sustainable development of China's economy. The "Eleventh Five Year Plan Outline" just issued by China has made it clear that we should take resource conservation as the basic national policy, develop circular economy, protect the ecological environment, speed up the construction of a resource-saving and environment-friendly society, and promote the coordination of economic development with population, resources and environment. Among the main goals of economic and social development, the energy consumption per unit of GDP will be reduced by about 20%. "This should become the threshold for the introduction of foreign investment in high-energy consumption industries." An insider emphasized

as for whether Schott's investment project meets the requirements of "improving the quality of foreign capital utilization and water, its in-depth utilization and research and development will not only bring good economic benefits to the society", it may still be up to the relevant departments and experts to decide. Caihong said that in December last year, the State Council's decision on Issuing and implementing the Interim Provisions on promoting industrial restructuring clearly listed products that are "not conducive to resource and energy conservation" and "significantly excess production capacity" as restricted projects, which should become the principle of regulating the introduction of foreign capital into the glass bottle production industry

Zhang Jing said, "in the international market, the most prominent people who block the entry of foreign enterprises with non trade barriers are basically industry associations.", Under the slogan of economic globalization, mature market economy countries pursue the policy of "government liberalization and market control", and various associations, chambers of Commerce and other organizations from all walks of life strictly re regulate the markets that their governments have to open due to their accession to the WTO. In recent years, Chinese enterprises often encounter various troubles when entering foreign markets. Some WTO member countries make full use of the trade rules and regulations of trade associations and other organizations that cannot be governed by WTO rules to reset the threshold of the domestic market and hinder the entry of Chinese enterprises and capital that have entered the WTO as much as possible. This is worthy of our enterprises and associations to learn from, but also the government departments need to change their ideas. Zhang Jing said, "the WTO rules only restrict the obviously unreasonable market restrictions in the government actions and legal achievements of Member States. Since enterprises are not the commitment Party of the rules, the WTO rules have no direct binding force on the market behavior of enterprises pursuing civil and commercial legal norms. Of course, Chinese enterprises are no exception." In the process of the transformation of government functions, industry management functions have been stripped out, and the role of associations is increasingly prominent. The positive action of China Pharmaceutical Packaging Association in the Schott incident fully illustrates this point

source: Jialong international glass procurement

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