Study on China's Timber Resource Shortage and Import Structure: Natural Forest Protection Program Outlook, 1998 to 2008

Abstract

The state of China's ecological environment has improved to some extent since the Chinese government initiated the Natural Forest Protection Program (NFPP) in 1998. The logging prohibition and limitation policies adopted by the NFPP, however, have reduced domestic timber supply. Together with the thriving economy, decreasing domestic timer supply continues to widen the gap between supply and demand. Importation is considered to be the primary solution to this issue, making China the world's largest timber importer. China's major timber suppliers are Russia, Malaysia, Papua New Guinea, New Zealand, and Gabon, among which Russia accounts for more than 61 percent of China's total timber imports. The relatively cheaper conifers imported from Russia account for more than 60 percent of all imported timber, with volumes continually increasing because of the rapid pace at which China has been implementing its infrastructure projects. In addition, as living standards continue to improve, requirements for home decor and furniture also grow, further increasing the demand for tropical to temperate timber. In the long term, imports will remain the main solution to the insufficient domestic timber supply in China.