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The multiple benefits of forests and forest products are well-understood and promoted by the government. The Key Forestry Industry Policy issued by multiple ministries including the State Forestry Administration states that developing the forestry industry is crucial for enhancing the harmony between man and nature. It concludes that promoting recyclability and replacing non-renewable resources is an important strategic direction. And that the renewability and natural organic decomposition of forestry products are part of the development of a sustainable society.It recognizes that forests are important strategic resources, and that wood, alongside steel, cement and plastic, is one of the four key raw materials in the world. It states that the way to secure the national wood supply is to speed up the development of the forestry industry. And it also points out that developing the forestry industry is a strategic measure for improving employment and incomes, particularly for the large populations in the rural areas.The Key Forestry Industry Policy focuses on developing fast-growing timber-producing plantations, as well as species with economic value.At the current stage, China’s forest plantations are intended for pulp and paper and wood-based composites, rather than structural timber. New plantations to supply structural grade softwood for construction would provide China with a domestic supply over the longer term and retain economic benefits within China, particularly given the anticipated growth of the wood building sector.
Forests harvested for construction generate economic value in the wood products supplied by the forest, and in new forestry, transportation, and construction jobs. These economic benefits provide the incentive to regenerate recently harvested forest areas, plant new forest areas, and manage for sustainable development.Benefits from sustainable forest development are many: land stabilization, watershed management, wildlife refuge, protection of fisheries, preservation of plant and animal species, recreation,aesthetics, and spiritual values. Two benefits are particularly important for China: economic return and reduction of greenhouse gases.Trade in forest products reached a total value of US $ 460 billion in 2007,about 4 per cent of all trade. The trade value of sawnwood was about US $ 71 billion, roundwood about US $ 30 billion, and wood-based panels about US $ 68 billion.Europe is the largest exporting and importing region. In 2008, its total export and import value was over US $ 9 billion for sawnwood and close to US $ 3 billion for roundwood.Countries such as Canada, Sweden, Germany, Chile, New Zealand and the US are the largest sawn wood exporters. In 2008, Canada’s sawnwood exports totalled about US $ 5 billion.China has become a large exporter and importer of forest products in the global market. It exports pulp and paper, hardwood flooring, wood panels, furniture and secondary wood products. It imports hardwood sawnwood mainly from Southeast Asia, and softwood sawnwood mainly from Russia, the US and Canada.It is also a major importer of industrial roundwood, particularly from adjacent countries in the northern boreal forest regions and in the southern tropical regions.
The domestic demand and supply of wood products has been increasing in recent decades due to strong economic growth and the associated increase in urbanization, living standards and population.China’s construction and decoration market is worth over 3000 billion RMB, much of which is materials. In Shanghai for example, the market for wood products in the construction and decoration sector exceeds the equivalent of 3 million cubic metres of roundwood a year, 50 per cent of Shanghai’s total annual consumption of wood and wood products. Rapid growth in demand for wood products is expected to continue.Foreign investment in this sector has been increasing. In 2007, there were 523 projects, mainly in fast-growing plantations and the wood processing industry, involving foreign investment of US $ 0.786 billion.As a result, employment in the forest industry and related construction and decoration industry has also been increasing.