Reborn in America, I'm serious about making money.

How severe is the paper shortage in mainland China?

在1994年的一份刊物上曾这样写到：……进入1994年纸价开始沖顶,3600,3800,4000,4800;到了1995年,纸"老虎"冲出"笼子",一跃便达吨价 5000多元,到5月份已达每吨6200元。

It is now reported that the price per ton has broken through the 6400 yuan mark. In some areas that do not produce paper but consume a lot of paper, such as Yancheng, Jiangsu, newsprint has reached 6800 yuan per ton, and even 52-gram printing paper has reached 6000 yuan per ton. Moreover, the supply still cannot meet the demand.

This article, "An Undeniable Reality—The Paper 'Tiger' Is 'Eating' People," explains how expensive paper was at the time and how it subsequently fell.

The main reason is the planting of fast-growing forests in mainland China, but compared to fast-growing forests, the cost of abandonment planting is lower.

Zhang San's actions caused the prices of various types of paper to rise suddenly ahead of schedule, which made many people feel uncomfortable. Those who owed money also realized the other party's power. They realized that they were out of luck and that unless they wanted to quit the industry forever, they would never be able to get around this new era paper company.

Besides this paper mill, Zhang San plans to build another paper mill in the Suzhou-Hangzhou area, but he'll pass on other places.

On the other hand, the aftershocks of this sudden turmoil in the paper industry have not subsided. Instead, they have made many paper mills nervous. They are worried about two things: one is the rising price of raw materials, and the supply chain is controlled overseas; the other is that New Era Paper Industry Co., Ltd. in Dongguan City has expanded its production capacity, and its prices are cheaper, making it difficult for them to survive.

This makes me very angry and furious; but what can I do? The situation is beyond my control.

Moreover, some well-informed people felt uneasy after learning the reason for this price fluctuation. These people dared to default on their debts, no wonder they resorted to such methods, it's not their fault.

Just as they were wallowing in self-pity, another piece of news made them very unhappy: New Era Paper was going to establish a paper industry association to discuss the sustainable development of the industry.

The meeting was held in Dongguan, which made many people unhappy. Why was it held in Dongguan? But anger aside, they still had to go.

Under these circumstances, they gathered in a small hotel in a town next to Dongguan City; immediately some people were unhappy. Although these people owned a factory and didn't make much paper, they were still very wealthy. In 1993, these people were all millionaires.

"This hotel is so ordinary! The rooms are as small as pigeonholes!"

"Yeah, the bed was as hard as a rock, I didn't sleep well at all last night."

"The bathroom wasn't clean either, and the showerhead had a very weak water flow."

"The breakfast was terrible, with a pitifully small variety."

"And there's no elevator, so we have to carry our luggage up the stairs!"

"The waiters weren't very friendly either; they were indifferent to us."

"Alright, alright, stop complaining. Don't let them hear you, or they might cause some trouble."

As soon as these words were spoken, silence fell. The thought of the other party's actions towards debtors sent chills down their spines; they wondered what the purpose of this meeting was.

However, they were helpless. The other party controlled the upstream supply, leaving them with no choice but to be angry but not daring to speak out. As long as the other party continued to control the cheap raw materials, they would not jump out to oppose it.

Meanwhile, Manager Liu advised Zhang San, "Boss, if you do this, they'll be very angry, and then they..."

"What can they do? What can these scattered people do? Even if you're angry, you have to hold it in. We're the suppliers; if they don't buy, we'll use it ourselves. As long as we stay strong, there's nothing they can do." Zhang San patted his shoulder and said, "So, you have to work hard."

"Let them go to the meeting, so they won't be uncomfortable and complain about us; and we'll just waste money on the room, which is not worthwhile for either of us."

The meeting was held in that small hotel. They gave up the cafeteria and used it as a meeting room. The meeting room was fanned, and it was very hot.

Manager Liu began by saying, "As you all know, some buyers are always trying to delay payments, which is unacceptable. We must stand united against external threats... so that we, the hardworking paper industry workers, can ensure..."

"Now, let's elect the president of our association. Of course, after being elected, you will need to register our association."

"We will now proceed with the secret ballot."

Soon, the process began. So many companies looked at each other and then voted. Sure enough, New Era Paper became the chairman unit.

"Since everyone is so kind, let's allocate the monthly quota for waste paper..."

The people below broke out in a cold sweat. Fortunately, they had all chosen New Era Paper Industry. If they had chosen someone else, they would have regretted it.

"So far this year, we've imported ten million tons of waste paper, of which four million tons came from the Yangtze River Delta region, and six million tons from our own region. Now, we're implementing a quota system for this waste paper, with our factory taking half. Is that alright?"

The people below remained silent, indicating their tacit agreement. They felt the other party had already been very kind; they could have taken it all, but now they were being asked to share half, expecting the other party to be grateful... That was impossible.

So you think you're so great just because you control the supply? I mean... I really am.

"We fully support the chairman's words. We will stand around the chairman and safeguard the healthy development of the paper industry association..." Immediately, someone stood up and fully supported the decision of New Era Paper.

Manager Liu immediately said, "That's very well said, that's exactly what I was thinking. In that case, you'll be the vice chairman."

The others immediately thought to themselves, "Damn it! You got away with it, why didn't you give us a shout-out? You should have stepped up and patted us on the back; now look what's happened, your quota is probably going to be reduced."

Although they weren't the first, there were soon a second, a third, a fourth... Sure enough, people can't resist praise. Whoever praises well and praises the best gets a larger share. This made the last few people want to curse inwardly, and they didn't allocate quotas according to production at all.

What are they supposed to say? It looks like things are about to change drastically!

Zhang San sat next to Manager Liu without saying a word, but Manager Liu frequently glanced at him. Seeing that he didn't react, it meant that the boss had approved... The boss's arrangements had been fully implemented.

A large number of ships are transporting waste paper to the mainland, and the amount is quite substantial; it's not that he wants to make more money, nor that he wants to become a leading company in the industry; he simply wants to regulate the industry's chaotic practices and promote the healthy development of the entire industry.

And it seems to be working very well; these people are all good businessmen.