China wood products trade in 2017

Figures from China Customs shows that total value of China’s wood products trade (imports and exports) in 2017 climbed 10 per cent to US$156.4 billion. The growth in wood products imports grew 21 per cent to US$ 52.6 billion, significantly higher than the growth in exports (1.3 per cent), reported Wood Week.

The US is the main importer of China’s wood products but anti-dumping and anti- subsidy policies in the have led to a steep decline in exports to the US.

China’s wood products companies are facing considerable challenges in the U.S. market. The value of foreign trade in wood products between China and the U.S. in 2017 was US$29 billion, accounting for 19 per cent of China’s total wood products trade.

However, trade tensions between the United States and China are escalating after tariffs on US$50 billion worth of Chinese goods were announced by the U.S.

The U.S. recently released a list of tariffs on US$200 billion of Chinese goods and wood products are affected including wood chips, wood charcoal, logs, other wood products, sleepers, sawn wood, veneer, wooden flooring, particleboard, fibreboard, plywood, laminated wood, wooden doors, wooden windows, bamboo and rattan, wood pulp and waste paper, paper and board, pulp and paper products and wooden furniture and seats.

In 2017 the value of China’s exports of wood products now included in the list attracting tariff was US$16.365 billion. The value of China’s imports wood products included in the list attracting US tariffs was $8.27 billion. China imports mostly consist of waste paper, sawn wood, wood pulp, logs and paper products.

The changes to US tariffs, if implemented in full, will create a major challenge for Chinese enterprises.

The taxes will not immediately go into effect but will be subjected to a two- month review starting from August.