China is one of the biggest timber and timber products consuming countries in the world.  It is forecast that the consumption of timber and timber products such as sawn timber, plywood, sliced veneer, fiber boards, woodchips, pulp logs, sawn logs and veneer, rough sawn flooring tiles, finished flooring tiles etc in China will continue to increase rapidly in the next decade due to strong economic growth, a surging real estate and construction sector, the 2008 Olympic Games, the 2010 World Expo, and urbanization.  It is also forecast that China’s furniture production will exceed that of Italy and become the No. 1 furniture production and export country in the world by 2010.   China will not be able to satisfy its domestic wood product requirements for decades to come and a significant amount of the future wood product requirement will have to be sourced from overseas countries.

Russia is China’s biggest timber supplier due to competitive timber prices, similarity in tree species, preferential import policies and proximity to China.  Other major suppliers of timber to China include Indonesia, Malaysia, Myanmar, US, New Zealand and Canada.  Shipping will be a key cost factor in the international trade of timber and timber products as freight rates continue to increase sharply due to surging demand for international shipping services – particularly China.  

China is one of the 5 largest producers of industrial wood (others are US, Canada, Russia and Brazil) and the second largest producer of fire wood after India.

Apart from World Bank, Asia Development Bank and foreign aid projects, many multinational forestry and timber product companies are investing heavily in China.

Much foreign investment has been focused on fast-growing and high-yielding plantations such as Eucalyptus, timber and bamboo processing, wood chip, pulp and paper making.

China is in the process of building a 5 million hectare fast-grow high-yielding forestry base valued at AUD35 billion for paper production.

As a result of WTO accession, Chinese tariffs on imported forestry products have declined significantly.

China’s 10^th 5-year plan and the long-term development objectives of the forestry industry are to ensure the sustainable protection and utilization of its forestry resources.
 

Major Business Opportunities

	Import of timber and timber products
	Import of advanced pulp and paper making machinery and technology
	Import of wood and paper recycling machinery and technology
	Timber processing
	Paper making
	Interior decoration and renovation design, and related timber products
	Introduction, development and commercialization of new tree species for timber and wood chip production, erosion and desertification control and revitalization of degraded land due to salinity, water logging and chemical contamination.
	Forestry management and environmental protection know-how
	Training

 

Keys Needed to Develop and Capture Business Opportunities in China

How AgrifoodAsia Can Help You

In view of the vast business potential in China, businesses worldwide are actively searching for ways and means to access China’s vast market.  However, while tremendous opportunities exist in the huge Chinese agrifood market, accessing and turning those opportunities into reality is not easy.

Unless you have a product or service that sells itself, having a quality product or service at a competitive price does not necessary translate into instant success in China. The average foreign organization or company would still be required to spend considerable financial and  

human resources and years of time to build and acquire the China knowledge, business structures, networks and skills necessary for sustainable success in China.

AgrifoodAsia can minimize your chance of disappointment and lost opportunities, and save you time, money and effort by providing you with our extensive China business structures, mechanisms, networks, expertise and experience, and equip you with the skills necessary for you to DO and MAKE business HAPPEN in China through our training program.

Please browse our Partner and Business Centres for more information on how we can work with you to make business happen for you.