China has become the second largest consumer of paper in the world since 2003. The increasing demand in the market has stimulated the continuos development of paper industry and the operation situation of paper industry runs very well with a growth rate over 20%. In 2006, there are 3388 big sized enterprises in paper and paper of products with an annual income of 303.8 billion Yuan, increased by 19.32% over that in the previous year and the total last year. the sales income of paper industry in the period from Jan. to Aug.2007 is 233.679 billoin Yuan, increased by 21.73% compared with the same period last year and the profit value is 12.453 billoin yuan, increased by 39.46% than that in the same period last year. The benefit of the industry increased comparably fast and the profit growth is comparatively high. Considering the fiber and water resources, environmental capacity, market demand, transportation and other conditions in China's paper industry layout, the industry is moving from north to south and the south region of the Yangtze River will become the key development area of the paper industry.Paper industry is capital-and technology-intensive industries. the eastern coastal areas of China is a region with relatively developed economy along with convenient information sources, sufficient capital inflows as well as convenient transportation conditions where the production of paper products has maintained stable development. The top four origins of paper products in 2006 are all in the eastern coastal areas, which are Shandong, Zhejiang, Guangdong. Jiangsu province

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