Market analysis for timber and forest products in China

This paper introduces the general condition of forestry resources of China and the demand and supply of timber and forest products. The market for timber and forest products has borne dual pressure because of the population explosion and growth of the domestic economy. A major contemporary strategy for sustainable forestry includes the promotion of the Forest Products Industry (FPI), the substitution of other materials for timber, and the encouragement of imports of timber and forest products. The author analyzes the effect of these policies on the market for timber and forest products. In addition, the difficulties encountered by most mid-to large—scale state-owned forest enterprises during the transition from a centrally-planned economy to a market economy are examined. Finally, the author points out the countermeasures and means for reform of these old forest enterprises with a view toward future prosperity of the market for timber and forest products.