Article at a glance:

The China factor in fine paper

• European and North American fine-paper producers hope that China's booming demand will solve their overcapacity problems, but celebrations may be premature.
• China's surging capacity to produce its own paper will generate new trade flows—creating a globalized market characterized by overcapacity, new low-cost contenders, and strong price pressures.
• Western producers that decide to stay in the fine-paper business have two options. One is to build a low-cost position based on very high productivity and access to cheap raw materials. The other is to work closely with other players in the value chain to provide distinctive paper applications and services tailored to each customer's needs.