Staggering growth in south China’s import of U.S wood and wood products

According to Forestry South Africa, South China’s imports of U.S. wood and wood products have been on a continuing rise in general for the past eight years. And last year, a new annual import record of USD700 million was recorded, which account for about 30 percent of China’s total imports from the U.S.

Crucial contributor: Furniture Industry

The strong demand for U.S. wood and wood products from South China was due to its prosperous furniture industry, especially in Guangdong which is the biggest furniture manufacturer and exporter across the whole nation. For 17 consecutive years, Guangdong was in the lead ifor the annual sales of furniture among all provinces. Hence, the coastal province of southeast China plays a pivotal role in domestic distribution of imported wood, the Forestry South Africa reported.

Why future imports will increase

For the longest time, imported wood were made into high-end furniture to cater to the need of overseas consumers. In recent times, with the growing middle class, these high-end furniture are seeing a growth in popularity. In addition to the abandonment of one-child policy, China will see a noticeable population growth, which will result in the increase in demand for goods and services. According to a research jointly conducted by Shanghai Jiao Tong University and Beijing Jiaotong University, China’s urbanization rate will hit 63 percent by 2020, and by 2018 the country’s urban population will exceed 800 million.

While the increasing need for wood is inevitable, the domestic supply of wood continues to fall short due to the government’s blanket ban on commercial logging of native forests. To encourage more overseas wood and wood product exporters to enter the vast market of South China, the Agricultural Trade Office (ATO) in Guangzhou is now actively staging and supporting events to promote the imports of wood and wood products.

Source: Forestry South Africa