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China's trade in the main forest products achieved a favorable balance in 2005 for the first time since 1949, the China Green Times reported on February 20.

Statistics from the General Administration of Customs show that the total trade volume was US$38.318 billion, up 18.51 percent from the previous year and equal to 43 percent of the total output of the country's forestry industry. This was broken up into exports worth more than US$20 billion (the first time such a figure was achieved), up 29.36 percent, and imports totaling US$17.627 billion, up 7.87 percent, creating a favorable trade balance of US$3.064 billion.

A continuous and rapid increase in the two-way trade of forest products has not only enabled Chinese products to become more competitive internationally, but also helped to upgrade the comprehensive development of the forestry industry to the point where it has become one of the most important economic growth points, according to the analysis of forestry experts. Export of forest products has become a major revenue source for some local governments, and helped boost farmers' income and created jobs. Meanwhile, with the growth of output, export volume, and foreign exchange profits, the increasing demands for raw materials have brought into full play the initiative of local people for forestation, thus promoting agricultural structural adjustment.

Among the main export items, wooden furniture still ranks first in terms of earnings, with continuous and large growth. Paper, paperboard, wood products, plywood, and rattan-straw-reed products rank second, third, fourth and fifth respectively. Plywood and fiberboard exports are maintaining a continuous high upturn and have become internationally competitive. However, veneer and chipboard exports continue to decline.

On the import side, the trade in logs reached 29.368 million cubic meters, up 11.6 percent, and was worth US$3.244 billion, up 15.6 percent. The import of logs accounted for 62 percent of the country's total wood output in 2005. Sawn material imports stood at 6.054 million cubic meters, equaling the figure of the previous year, although the cost rose 9.3 percent. Imports of artificial board changed a great deal, with the volume of plywood, fiberboard, and chipboard decreasing to varying degrees. Wood pulp, waste paper, paper, paperboard, and paper products import remain the largest imported items, continuously maintaining rapid growth and being worth US$11.004 billion, a rise of 6.7 percent from the previous year. Imports of edible fruit and nut products increased by 3.7 percent.

Experts said that, with China's continuous huge demand for artificial board and wood pulp raw materials, imports of wood chips continued to show a rapid upturn, while exports continuously decreased. Imports of paper, paperboard and paper products also showed signs of decline, while exports of wood pulp enjoy a comparatively large upturn, which is considered a challenge to the structural adjustment of the domestic papermaking industry. Adjusted and controlled by a state policy that forbids the export of charcoal, imports have remained high and the pressure of domestic resources was alleviated in varying degrees.

Experts pointed out that the share of Chinese forest products in international markets has been expanding, but disputes over alleged dumping, illegal tree-cutting, and illegal trade frequently occur, as have technological trade measures involving standards, authentication and quarantine. Domestic forestry enterprises face such problems as small production scale, slow progress in technological innovation, low quality of products, and inability to adapt to the demands of international trade. These matters await further policy guidance and support.

(China.org.cn by Li Jingrong, February 22, 2006)