As the world turned to Azerbaijan for COP29, where global leaders finalised details about the International Carbon Market, China’s grip on timber supply chains only strengthened after securing more than US $2.7 billion (19.4 billion yuan) in forest contracts during the World Forestry Industry Conference in Nanning, Guangxi Zhuang.
As reported by Chinese State Media, the World Forestry Industry Conference is part of the China-ASEAN Expo (or CAEXPO) – one of the world’s largest expositions, promoting cooperation between China and ASEAN members in trade, investment and tourism.
ASEAN, which in 2002 signed the China—ASEAN Free Trade Agreement (ACFTA), is a crucial partner in China’s Belt and Road initiative. Most countries involved in the block “perceive the initiative as an opportunity to build up their infrastructure and boost their domestic economy, especially ahead of an anticipated slump in global growth.”
The two-day conference focused on innovation as a driver of high-quality development in the forestry industry. It brought together representatives of forestry authorities, international organisations, and more than 1,100 global companies.
“By 2023, China’s forest coverage rate had exceeded 25% (of land mass), with a forest stock volume of over 20 billion cubic meters,” said Guan Zhi’ou, head of CCP-controlled the National Forestry and Grassland Administration. “The total output value of the Chinese forestry industry exceeded 9 trillion yuan last year, making China the world’s leading country in forestry production, trade and consumption,” Mr Guan said.
Often described as “the World’s Factory,” China is connected to more than 30% of the total global trade in forest products, including more than 70% of the world’s plywood on the mainland or via Chinese-owned interests in Malaysia and Indonesia. As the world’s largest consumption market, it swallowed 18% of global demand and 71% of Asian demand for forest products. It has the highest reliance on imports – with the share of imported wood at 55%, including sawn timber, logs, pulp and paper.
- For more information about China’s Belt and Road Initiative and its role in driving the supply chain for timber products, click here for Wood Central’s special feature.
