Latest reports from China National Bureau of Statistics (CNBS) showed business earnings of industrial enterprises above designated size totaled RMB8.71 trillion in 2021, rising 34.3% from 2020 and 39.8% from 2019 respectively. This was also a growth of 18.2% in a two-year average.

Among the enterprises, those in the paper/paperboard production and converting sector realized business revenue of RMB1.5 trillion, after growing 14.7% year-on-year. At the same time, earnings rose 6.9% to RMB88.48 billion. While hailing at the turn-around in operating income from the 2.2% declines in 2020 from 2019, industry analysts see a noticeable increase in operating costs in 2021. Contrary to the 3.8% reduction to RMB1.10 trillion from 2019 to 2020, operating costs surged 15.9% from 2020 to nearly RMB1.29 trillion in 2021. It is worth watching if this momentum will continue into 2022.