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Thirty Years of Staying True to Our Original Aspiration and Taking Responsibility: Building Dreams and Setting Sail in the New Era—Seizing the Opportunities of the New Era to Achieve a New Leap

2023/08/31

1978 Since the Third Plenary Session of the 11th CPC Central Committee, China has comprehensively embarked on the process of reform and opening up. 2018 This year marks the 40th anniversary of reform and opening-up. Over the past four decades, the Chinese people have braved countless obstacles and overcome immense challenges, forging an extraordinary and glorious journey and achieving remarkable accomplishments that have captured the world’s attention, thereby writing a bold and vibrant chapter in the great rejuvenation of the Chinese nation. Over the past four decades, and particularly since the 18th National Congress of the Communist Party of China, the Party Central Committee with Comrade Xi Jinping at its core has made the decision to comprehensively deepen reform, ushering in a new chapter in the reform of state-owned assets and state-owned enterprises.

1988 year 9 month 16 In the tenth year of reform and opening-up, the predecessor of China Paper Industry Investment Co., Ltd.—China National Materials Development & Investment Corporation—was officially established with the approval of then Premier Li Peng. Bathed in the favorable winds of reform and opening-up and driven by the rapid development of the economy and various social undertakings, China Paper embarked on a magnificent 30-year journey of growth. Over the past three decades, the company has taken reform as its driving force and development as its goal, innovating through development and enhancing itself through innovation. Today, China Paper has become the only central enterprise whose core business is the production, development, and utilization of wood pulp and paper, with four listed subsidiaries and substantial pulp and paper production capacity. 300 X ten thousand tons, with annual sales exceeding 230 hundred million yuan, workforce 1.3 With a workforce of over 10,000, our business has expanded and upgraded into multiple sectors, including ecological conservation, clean energy, and cloud computing. Our original aspiration and commitment—to “dedicate ourselves to green paper products and create a better life”—is not only our vision but also our mission.

Staying true to our original aspiration—this is the founding mission of Chinese enterprises. Throughout the historic process of China’s reform and opening-up, state-owned enterprises have shouldered a vital mission: to preserve and enhance the value of state assets in the course of market-oriented development, and to continuously meet the people’s aspirations for a better life by enriching the supply of goods and services. Over the years, China Paper has undertaken policy-driven, market-oriented, and forward-looking project investments across numerous sectors, accumulating invaluable experience and lessons while playing a significant role in national economic development. Over the past three decades, China Paper has evolved from an investment-focused business model to one centered on industrial development, gradually shifting its focus from pure papermaking to a dual emphasis on papermaking and ecological sustainability. This journey of continuous innovation and bold challenge serves as a microcosm of the broader reforms of state-owned enterprises under the banner of reform and opening-up.

The development of China’s paper industry has by no means been smooth sailing; early investments have seen both successes and failures, and after entering the market, it has experienced downturns and crises. Since its inception, China’s paper industry has… 2005 In [year], it acquired Yuehua Packaging to enter the paper-making industry. 2008 In [year], a restructuring and cooperation was undertaken with Hongta Renheng. 2009 Acquired Guanhao High-Tech this year, 2010 In that year, it acquired a stake in Taigelin Paper (also in the same year, the development company was renamed China Paper). 2012 In that year, in accordance with the requirements of the State-owned Assets Supervision and Administration Commission, it participated in the restructuring of China Metallurgical Paper Industry. This series of restructuring and reform initiatives has given rise to today’s Chinese paper industry. 2016 In recent years, the company acquired Kaisheng Landscaping, thereby entering the ecological sector. It is precisely because China Paper has proactively explored transformation over many years—overcoming numerous challenges and obstacles, steadfastly pursuing reform, and striving for continuous improvement—that it has achieved today’s development. Looking back at history and summarizing our experiences, we have distilled the key factors behind our current success:

China Paper Industry has steadfastly strengthened Party building and promoted enterprise development. Upholding the Party’s overall leadership and comprehensively strengthening Party building has played a decisive role throughout the process of state-owned enterprise reform and in the course of the company’s development. China Paper Industry has consistently engaged in rigorous study, using Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era to fortify its thinking and guide practical work, thereby advancing reform and development, aligning thinking, and building consensus. As a result, studying the spirit of the 18th and 19th National Congresses, studying the Thought of the General Secretary for the New Era, and strengthening Party building have truly become intrinsic drivers of corporate development, with Party building effectively serving as a vital safeguard and support for the company’s reform and growth.

China Paper has steadfastly pursued reform and innovation. Over the past three decades, the industry has continuously reformed and innovated while steadily growing and expanding, never hesitating or faltering in its strategic positioning, but instead accelerating the pace of reform. In recent years, leveraging platforms such as China Chengtong Holding Group Co., Ltd.—a state-owned capital operation company under the parent group—China Paper has enhanced the development of its traditional paper business, proactively expanded into eco-friendly initiatives, and strived for rapid corporate growth.

China’s paper industry has steadfastly worked to improve its institutional mechanisms and enhance its vitality. The central government has explicitly called for deepening the reform of state-owned enterprises, with a particular focus on internal reforms of mechanisms and systems. In response, China’s paper industry has undertaken numerous proactive reforms and pilot initiatives in areas such as shareholding systems, mixed ownership, internal mechanism reform, talent recruitment, and compensation and incentive schemes.

China’s paper industry is steadfast in its commitment to quality and brand building. Across both the papermaking sector and the broader eco-environmental arena, the industry is fully aligned with the nation’s green development philosophy, advances supply-side structural reform, enhances service quality, undertakes technological upgrades, strengthens safety and environmental protection, actively pursues profitability, prioritizes corporate creditworthiness, cultivates strong brands, and strives to build world-class brands and world-class enterprises.

Among the subsidiaries of China Paper Investment Co., Ltd. are some of the earliest paper-making enterprises established in the People’s Republic of China, such as 2018 Yueyang Linzhi and Yinhe Paper, which both celebrated their 60th anniversaries this year, are joined by a new generation of enterprises that emerged during the wave of reform and opening-up, such as Huaxin Packaging, Guanhao High-Tech, and Meiliyun. As socialism with Chinese characteristics has entered a new era, China’s paper industry has consistently reflected on how, in the course of social transformation and development that continually seeks to meet the people’s needs, we can assume greater responsibility and better manage our relationships with the environment and with all stakeholders. The future holds many uncertainties, but with deep respect and an open, collaborative mindset, we remain committed to learning from the best in the field and seeking guidance from leading experts across sectors.

The paper-making industry is characterized by robust market competition. To secure room for survival and growth in this competitive environment, China’s paper industry has established a corporate culture centered on “survival of the fittest through natural selection, adaptation to the environment, open innovation, and the pursuit of excellence.” “Survival of the fittest through natural selection” addresses the challenges of corporate competitiveness and sustainability, while “open innovation and the pursuit of excellence” focuses on fostering innovation and driving sustainable development, with the overarching goal of building a modern enterprise that is highly competitive in the marketplace.

2018 This year marks another pivotal moment for nationwide reform, as a new round of state-owned asset and state-owned enterprise reform has officially begun. Over the past four decades of reform and opening-up, China has achieved remarkable accomplishments, with a pace of development that has captured global attention. As we enter a new era, everyone is striving to build a better life. The Chinese paper industry is exploring how it can assume greater responsibilities and achieve even more robust growth in this new era. Amid an environment of uncertainty, we have chosen to embrace change with goodwill, positivity, and openness—aligning ourselves with the trends of the times while upholding a spirit of continuous transformation and self-criticism. By maintaining strategic composure and patience, the Chinese paper industry, now celebrating its 30th anniversary, remains true to its original mission. Building on three decades of reform achievements and deep industry expertise, we are leveraging these strengths to drive innovation and transformation, with the aim of realizing higher-quality development. In the period ahead, the Chinese paper industry will:

First, we must adopt a benevolent attitude, place environmental protection at the forefront, and rekindle the vision of sustainable development. General Secretary Xi Jinping has put forward the development philosophy that “lucid waters and lush mountains are invaluable assets.” This represents a sustainability framework that prioritizes the environment—a fundamental departure from previous development models. It sets the overarching direction for social governance and economic transformation. As the sole state-owned enterprise in the paper industry, we bear an inescapable responsibility to lead by example. China Paper will remain true to our original aspiration, proactively embrace new missions in the new era, and, guided by the principle that “lucid waters and lush mountains are invaluable assets,” implement a sustainable development strategy to continuously meet the people’s growing needs for a better life. This is the dream of reform and development for China Paper in the new era. Just as military tactics are ever-changing and water takes countless forms, our specific business operations may evolve in response to shifting circumstances; however, our commitment to the overarching direction and ultimate goal of sustainable development will never waver. This unwavering dedication is the strategic choice and development pledge that China Paper has made in the new era.

Second, we must adopt a proactive attitude and summon the fighting spirit of “if not us, who?” to ride the wave of state-owned enterprise reform. General Secretary Xi Jinping’s call to “enhance the quality, strength, and scale of state capital and foster world-class enterprises with global competitiveness” embodies the Party Central Committee’s new thinking, new requirements, and new direction for deepening SOE reform. China Paper must clearly recognize the situation, seize the momentum, hold high the banner of SOE reform, integrate resources, optimize allocation, and continuously strengthen endogenous driving forces. The path of China Paper toward its goals must highlight the new characteristics of the new era; amid intense transformation, we must act decisively and swiftly secure five key sources of new momentum: new impetus for high-quality development, new impetus for mixed-ownership reform, new impetus for specialized and market-oriented restructuring, new impetus for transformation, and new impetus for going global.

Third, we must adopt an open-minded approach and a win-win business model, working together in unity to pursue our shared vision and set sail on a journey of dreams. With environmental protection as our top priority, we will integrate resources and promote sustainable development—this is the dream of China’s paper industry, and it is also the dream of us all. A dream big enough can embrace each and every one of us. The Chinese paper industry stands with open arms, eagerly looking forward to advancing hand in hand with like-minded partners. We firmly believe that, as long as we stay focused on the goal of sustainable development, pool our efforts, persevere without ceasing, and keep striving to realize our shared vision, we will surely reach a brighter and more promising future.

The top-level design for the reform of state-owned assets and state-owned enterprises has been completed, and the implementation of specific plans is steadily advancing. During his inspection tour of Shandong this year, General Secretary Xi Jinping made it unequivocally clear: “Who says state-owned enterprises cannot be run well? To make them thrive, we must unswervingly pursue reform; clinging to outdated practices will get us nowhere. Only through successful reform can they transform into modern enterprises.” These remarks set forth clear requirements and provide a guiding framework for our efforts. The reform of state-owned enterprises has entered a new era and embarked on a new journey—any slackening of effort or retreat would be tantamount to losing ground on all fronts. At this pivotal moment in history, I am firmly convinced that, taking the 40th anniversary of reform and opening-up as an opportunity, we will forge a powerful consensus on deepening reform, unleash a vigorous call for reform in the new era, and ensure that the Chinese Dream of the great rejuvenation of the Chinese nation is realized through the ongoing process of reform and opening-up!

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