Recovery of the glass industry in China
The glass industry has been shifting from a period of prosperity and growth to a period of economic contraction. Over the past 20 years, global glass demand in most modern countries has grown more quickly than GDP. Since 2005, the demand for glass in China has been outpaced by supply, resulting in a slowdown in growth in the industry.
The slowdown largely resulted from government regulations constraining growth, environmental problems and costly raw materials and high fuel expenses. In 2008, China´s glass industry was heavily affected by the global economic crisis. To offset slowing global growth, on November 5, 2008, at the State Council meeting, Premier Wen Jiabao offered a RMB4 trillion ($586 billion) stimulus package for the next two years and announced the government would move to a proactive fiscal and a moderately relaxed monetary policy.
Pursuant to the stimulus package, the Chinese government has committed to increase domestic demand and fuel economic growth by promoting the recovery of ten major industries, including automobile and construction. The actions taken by the Chinese government should significantly increase the demand for glass products which are essential for construction and automobile industries and will provide market opportunities all the companies.