China has experienced over two decades of high economic growth, which has been stimulated by the consecutive increases of industrial output, consumer consumption and capital investment. China's GDP has been growing at 9.8% per annum. National industry output has been advancing at 15% annually and will continue to sustain a strong growth into the next decade. The fast-growing middle class is creating an enormous consumer society. As the fastest-growing economy in the world, the emerging market has attracted the attention of investors and corporations around the world for the last two decades.
To deepen the reform of state-owned enterprises is a long-term task and needs great efforts. The reform of state-owned economy has witnessed rapid changes in both economic and social aspects. The introduction of foreign advanced technology and capitals will continue to be favored by the Chinese government and business community. New ways will be adopted to utilize foreign investment, including mergers, acquisition, and investment funds and securities investment. China will continue to improve its investment environment in the areas of legal system, intellectual property protection, foreign trade and investment regulation, infrastructure and financial system. China is the second largest foreign investment recipient after the United States in the world today. Given its vast market, the country provides tremendous opportunities for investment and trade both for the present and future.
With the reform and open-up, especially after China joined WTO, China's high economic growth has spurred the rapidly rising on consumption of baby care products. Moreover, China takes the family planning policy, and most families have only one child, so they can pay more money and time to their children. Because baby care products are very important, the country's baby care products consumption has grown rapidly. It is forecast that the consumption will increase quickly in the next five years with the quick development of Chinese economy and the improvement of people's living conditions.
The consumption of disposable diapers and baby feed accessories were 1.67 billion pieces and 195.3 million units in 2004. The demand for skincare and toiletries reached 1.16 billion yuan in 2004. The market demand for disposable diapers and baby feed accessories is projected to reach 2.89 billion pieces and 300.2 units by 2009. As to the skincare and toiletries, the demand will reach 1.85 billion yuan by 2009, growing at 9.7% per annum. In 2004, the production of disposable diapers and baby feed accessories were 1.68 billion pieces and 182 million units, and China's total output of skincare and toiletries reached 1.19 million yuan. Despite of new facility construction and capacity expansion, China's baby care products demand will continue to outstrip supply as to some kinds of baby care products. In 2004, China imported 39.7 million Yuan of skincare and toiletries, which mainly are the high quality products. At the same time, China also exported 69.0 million yuan. With the research and development, China will continue to increase its exports.
In the last 20 years, the Chinese baby care products industry has achieved a great development by technology reform, product exploit and the introduction of new technology and facility. With the increasing of market demand, the baby care products industry expands the production gradually in recent years. And many famous baby care products companies have entered China to build their branches. This can almost meet the demand of all kinds of sectors. Baby care product becomes an important product in Chinese market. The Chinese government has given a high priority to the increase of baby care products production. Demand for high quality baby care products has been rising and will have a considerable increase in those areas. At the same time, baby care products also will be more popular in the future.
With the deepen reform of state-owned corporation, many companies have formed alliances or merged into large chemical groups. Enterprise reform is reshaping the baby care products industry, and many other international big baby care products companies will also enter Chinese market. So the production will be concentrated to large corporations, which have more powerful economic strength gradually.
