Norwegian paper maker upbeat on China

In the past months, some in China may have found that the price of their newspapers have increased a little. Meanwhile, some small and uncompetitive newspapers can no longer be found on the newsstands. What's going on in China's newspaper industry?

One reason is that newspapers have been hit by frequent newsprint price rises. As of Aug 1, newsprint cost 6,100 yuan per ton, up about 26 percent over January, its highest price in five years.

But newsprint producers have benefited little from the price hikes and are still struggling with low profits. In an exclusive interview with China Daily reporter Bi Xiaoning, Terje Engevik, head of Norske Skog in China, provides some insightsway-based Norske Skog is the second largest newsprint maker in the world.