Economy

Forest product trade growth may slow down

By Wang Zhuoqiong (China Daily)
Updated: 2010-09-09 14:01

Workers unload wood imported from Russia at Erenhot railway station in Inner Mongolia autonomous region. [Wu Changqing / for China Daily]

BEIJING - Forest product trade growth is likely to slow in the second-half of the year, after a strong surge in the first half, due to rising material and labor costs and the flexible exchange rate, said a government report.

The total trade value of forest products reached $44.67 billion in the first half, up 41.4 percent year-on-year. Exports grew 33 percent during the period to a record $22.33 billion, while imports rose 50.9 percent to $22.34 billion, according to reports on wood product imports and exports released by the State Forestry Administration and General Administration of Customs.

"The steady growth comes on the back of the government's stimulus package, the rebounding demand from wood processing manufacturers and recovering overseas markets," said Fu Jianquan, director of the development planning and finance management department at the State Forestry Administration.

Wood products trade with the United States increased by 42.5 percent to $6.61 billion in the first half, while it went up by 33.6 percent with the European Union to $6.05 billion and 31.9 percent with Japan to $2.48 billion.

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The US became the fourth largest round wood exporter to China after Russia, New Zealand and Brazil. Round wood imports from the US rose to 4.8 percent of the overall round wood import volume during the first half, compared with 2.7 percent last year.

The China-ASEAN Free Trade Area has also contributed largely to the surging wood products trade in the first half.

Bilateral trade value during the period surged 57.2 percent to $9.38 billion over last year.

Imports from ASEAN countries rose by 56.4 percent to $6.8 billion, while exports went up by 59.3 percent to $2.53 billion.

The report said demand for Chinese wood products has been increasing from nations like Brazil, India, South Africa and Russia.

"Emerging countries account for a relatively small proportion of the forestry product trade volume. However, their rapid development and market potential provide opportunities for Chinese manufacturers who are seeking new export markets," he said.