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China accounts for 30% of world furniture market; Second biggest importer of timber with a reliance on illegally harvested wood
By Finfacts Team
Mar 24, 2006, 22:38
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A new report released today by a coalition of international and Chinese organizations shows that the United States, Japan and the European Union are the main markets for furniture and other products made in China, much of which is made from wood harvested in countries with poor track records in terms of illegal logging, associated corruption or human rights violations.
Source: Forest Stewardship Council
The report, entitled China and the Global Market for Forest Products: Transforming Trade to Benefit Forests and Livelihoods also finds that China has a tremendous opportunity to boost its own timber production, reduce its reliance on raw materials imports and alleviate rural poverty by strengthening property rights and removing policy barriers that have prevented local communities and people from investing in forest production.
The report is based on five years of research by Forest Trends, the Center for International Forestry Research (CIFOR), and the Center for Chinese Agricultural Policy (CCAP) and many other Chinese and regional organizations.
The report finds that the US , Japan and the European Union are the leading importers of Chinese manufactured wood products. About 70 percent of all timber that is imported into China is converted into furniture, plywood and other processed products, and then exported. This booming trade coupled with China 's own domestic growth and demand for paper products is having a devastating impact on forests and poor forest communities globally.
“Few consumers realize that the cheap prices they pay are directly linked to the exploitation of some of the poorest people on Earth and the destruction of their forests,?said Andy White, lead author of the report.
According to the report, imports of forest products from China bound for the US/EU have increased almost 900 percent since 1998. The US now accounts for almost 40 percent of all forest product imports ?by far the largest destination of Chinese exports. US demand for all products manufactured in China grew by 24 percent between July 2004 and July 2005 alone. Meanwhile, China has become the world's leading importer of wood from tropical, developing countries. China has captured one-third of the global trade in furniture over the last 8 years.
“It is clear that China is in the middle of a global commodity chain, feeding consumption by consumers in the US and EU who are demanding low-priced forest products,?said Michael Jenkins, President of Forest Trends. “There are key roles for consumer countries to play in transforming this trade into one that benefits forests and people.?
The report highlights the inter-connection between China 's domestic growth, the global economy's demand for cheap wood products manufactured in China , the widening gap between rural and urban populations within China itself, and environmental destruction and poverty in forest areas around the world. It also presents a number of recommendations for the importing country governments and industry.
The report calls on international governments and the forest industry to increase transparency and accountability procedures and crack down on corruption and money laundering that drives the illegal business.
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