Policy uncertainty has intensified, and enterprises' strategies have become more cautious

The final EUDR voting on December 15th isapproaching, but there are still uncertainties regarding provisions such as theexemption for printed materials and the division of responsibilities. PapierUnion, Europe's largest paper trader, has disclosed that it has suspended thepurchase of non-compliant capacity for Q1 2026 and instead signed long-termcontracts with compliant suppliers. The market expects that after the policy isimplemented, the industry will accelerate its consolidation, and the exit rateof non-compliant small and medium-sized factories may reach 15%.