Its output amounted to 1.25 million TEUs (twenty feet equivalent unit) in the first three quarters this year, already outpacing the overall production of 1.1 million TEUs in 1999.

The output is expected to reach 1.35 million TEUs at the end of this year.

China's containers production has taken over 70 percent of the world market, the survey said.

According to China customs statistics, about 95 percent of containers produced, valued at US$1.8 billion, were sold to foreign countries such as Japan, South Korea and the United States between January and September this year.

The container industry is considered relatively labour-intensive, requiring less technology and capital.

China, with its abundance in labour resources, entered the container industry in the early 1980s and quickly caught up with Japan and South Korea where labour is much more expensive.

These countries, attracted by the competitive labour price and the growing market, invested in the container industry in China. Now China has more than 40 container production companies, 10 times more than its original four, and 90 percent of them are joint venture firms.

Recovery of the global economy, especially in Asia after the 1997 financial storm and the continuing booming expansion of international trade have stimulated increasing production of containers, said Wei Jiangling, senior engineer of the China Container Industry Association (CCIA).

China's significant economic performance and upcoming admission to the World Trade Organization are also stimulating foreign trade.

"The container industry is heading for a better tomorrow," Wei said.

Moreover, the increasingly expanding handling capacity of container ports around the globe is boosting the development of the container industry, he said.

In 1999, for the first time, the world's container handling capacity reached 201 million TEUs, with Asia taking 48.6 percent of it.

It is predicted to reach 218 million TEUs this year and 491 TEUs by 2012, according to a CCIA report.

The expansion of the container industry pushes the development of related industries such as steel, paint and wood as well as container shipping. Although China is the world's biggest container producer and it is believed that no other country could take its place in a short time, China should definitely pay attention to supply and demand as well as innovation and quality, said Yang Xin, a professor of Tsinghua University.

"Container manufacturers should always be alert and strive to improve management," CCIA's Wei suggested.

To prevent over-production, the State Economic and Trade Commission announced last year that no new container manufacturing companies would be allowed to open until demand exceeded the current potential capacity.

The annual production capacity of all the container-making companies in China is estimated at 1.7 million TEUs, far beyond the world's container production of 1.3 million TEUs in 1999.

China International Marine Container Group, the largest container manufacturer in China as well as in the world, said it valued technical innovation and was determined to provide a variety of multiple-function containers.

The common steel dry freight container no longer meets the demand. New types of multipurpose containers such as reefer and platform-based containers with folding ends have taken the forefront in recent years.

These types of containers account for no more than 35 percent of containers exported, said sources in CCIA.

(China Daily 11/21/2000)