People'S Republic of China Forestry Outlook Study

ASIA-PACIFIC FORESTRY SECTOR OUTLOOK STUDY II
WORKING PAPER SERIES
Working Paper No. APFSOS II/WP/2009/11
PEOPLES REPUBLIC OF CHINA FORESTRY

OUTLOOK STUDY
by
The State Forestry Administration
Peoples Republic of China
FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS

REGIONAL OFFICE FOR ASIA AND THE PACIFIC
Bangkok, 2009
APFSOS II: Peoples Republic of China
Contents
EXTRACTS
1. INTRODUCTION
Background
Forest distribution and its coverage
Main issues
Research process and methods
Structure of the report
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2. CHINESE FORESTRY THE STATUS QUO

Forest resource development status
Timber and timber products
Forest biomass energy
Non-wood forest products
Services of forests
Policy and institutional arrangements
Major issues and challenges for forestry
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3. FACTORS INFLUENCING FORESTRY DEVELOPMENT

Principal characteristics of social development
Political and institutional environment
Revitalization of the old industrial bases in northeast China
Change in the public financial system
Enforcement of property law
Change in economy
Globalization and regionalization
Technological advancement
Environment problems and environment policies
Major factors influencing forestry development in the next 20 years
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4. POSSIBLE SOCIAL, ECONOMIC, POLITICAL AND

INSTITUTIONAL DEVELOPMENT SCHEMES FOR THE NEXT
20 YEARS IN CHINA
Identification of the theoretic basis of the scheme
Identification of the policy analysis basis of the scheme
Identification of the realistic basis of the scheme
Identification of prediction scheme
Possible development situation in 2020
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5. CHINESE FORESTRY DEVELOPMENT BY 2020
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Forest resources
Changes in ecological forest area and commercial forest area
Forest bio-energy
Advantages and restricting factors of forest bio-energy development
Prospects for NWFPs
Services and functions of forests
Forest tourism and recreation
Forests social functions
Overview of forestry in 2020
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6. HOW TO BUILD A BETTER FUTURE?

Responses to changing social needs
Policy changes inside and outside the forestry sector
Institutional changes
Regional and global collaboration
Forest science and technology advancement
Working priorities and strategies
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7. SUMMARY AND CONCLUSIONS

Main conclusions
Follow-up actions
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8. REFERENCES
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INFORMATION NOTE ON THE ASIA-PACIFIC FORESTRY SECTOR OUTLOOK STUDY

The Asia-Pacific Forestry Sector Outlook Study (APFSOS) is a wide-ranging initiative to gather
information on, and examine, the evolution of key forestry issues as well as to review important trends in
forests and forestry. The main purpose of the study is to provide a better understanding of the changing
relationships between society and forests and thus to facilitate timely policy reviews and reforms in
national forest sectors. The specific objectives are to:
1. Identify emerging socio-economic changes impacting on forest and forestry
2. Analyze probable scenarios for forestry developments to 2020
3. Identify priorities and strategies to address emerging opportunities and challenges
The first APFSOS was completed in 1998, with an outlook horizon to 2010. During its twenty-first session,
held in Dehradun, India, in April 2006, the Asia-Pacific Forestry Commission (APFC) resolved to update
the outlook extending the horizon to 2020. The study commenced in October 2006 and is expected to be
completed by September 2009.
The study has been coordinated by the Food and Agriculture Organization of the United Nations (FAO),
through its regional office in Bangkok and its headquarters in Rome, and implemented in close partnership
with APFC member countries with support from a number of international and regional agencies. The
Asian Development Bank (ADB), the International Tropical Timber Organization (ITTO), and the United
Kingdoms Department for International Development (DFID) provided substantial financial support to
implement the study. Partnerships with the Asia-Pacific Association of Forest Research Institutes
(APAFRI) and the Secretariat of the Pacific Community (SPC) supported the organizing and implementing
of national focal points workshops and other activities, which have been crucial to the success of this
initiative. The contributions of many other individuals and institutions are gratefully acknowledged in the
main APFSOS report.
Working papers have been contributed or commissioned on a wide range of topics. These fall under the
following categories: country profiles, sub-regional studies and thematic studies. Working papers have
been prepared by individual authors or groups of authors and represent their personal views and
perspectives; therefore, opinions expressed do not necessarily reflect the views of their employers, the
governments of the APFC member countries or of FAO. Material from these working papers has been
extracted and combined with information from a wide range of additional sources to produce the main
regional outlook report.
Working papers are moderately edited for style and clarity and are formatted to provide a measure of
uniformity, but otherwise remain the work of the authors. Copies of these working papers, as well as more
information on the Asia-Pacific Forestry Sector Study, can be obtained from:
Mr. Patrick Durst
Senior Forestry Officer
FAO Regional Office for Asia and the Pacific
39 Phra Atit Road
Bangkok 10200
THAILAND
Ph. (66-2) 697 4000
Fax: (66-2) 697 4445
Email: [email protected]
EXTRACTS
Factors influencing Chinas forestry development
Chinas sustainable forestry development is not only dependent on the distribution of forest
resources and related natural conditions, but also influenced by various factors e.g.
demographic change, socio-economic development, political and institutional context,
technological advancement, globalization and so forth.
Demographic change is one of the most important influencing factors of Chinas

forestry development: changing demographics, including the total number of people,
alters the demand for substantial forest products and ecological services and
functions for socio-economic development. Meanwhile, changes in urban and rural
population structures also have negative impacts on the management and
maintenance of forests in collective forest areas
The rapid economic development of China lays a sound economic foundation for
the protection of forest resources and for ecological improvement. The government
continues to increase inputs in the forestry sector. Especially, investments in the Six
Key Forestry Programs are remarkably reinforced. Such movements fully
demonstrate the states strong support for forest ecological improvement
Improvement in the publics awareness of ecology and the transformation of
perceptions about consumption have advanced the development of community
forestry and had positive and profound influences on forestry development in the
new era. Voluntary tree-planting by the whole nation has been one of the highlights
Continuous improvement of the political and institutional contexts has active
effects on Chinas forestry development. The implementation of the West
Development and the Revitalization of the Old Industrial Bases programs in
Northeast China have provided excellent opportunities for sustainable forestry
development in the ecologically vulnerable, western areas and in the northeastern
areas with centralized distribution of forest resources. The alteration of the public
financial system and the implementation of The Property Law of the People's
Republic of China have provided institutional and legal guarantees for forestry
development
Chinas forest-related science and technology capacity has developed in leaps and
bounds. However, the innovative capacity and a truly holistic approach to forestry
science still falls short of those in developed countries, and does not yet meet the
needs of Chinas forestry development objectives. Science and technology capacity
is still one of the major restricting factors in Chinas forestry development
The continuous development of globalization and regionalization has significant
impacts on Chinas forestry development. Through involvement in international
trade and economic organizations e.g. the WTO and Asian-Pacific Economic
Cooperation Organization, China keeps strengthening its international contacts in
the field of forestry. And, as China has decreased its import tariffs for timber and
timber products and reduced non-tariff barriers, its export and import trade in wood
products has been more active

Status quo of China forestry
The Sixth National Inventory on Forest Resources (1998-2003) shows that China has a total
forest area of 174.91 million ha, forest coverage of 18.21% of total land area, gross standing
stock volume of 13.62 billion m and forest stock volume of 12.46 billion m. Chinas forest
area and stock volume are growing rapidly with the steady increase in forest coverage. The
forest quality is improved to some extent and the forest structure is also improving. Forests
that are not under public ownership are rapidly developing with their ownership being quite
diverse
The guarantee system for the protection and development of forest resources has been
preliminarily established and Chinese forestry is beginning to enter a new era of rapid
development.
The forest industry maintains a trend of sound development, with rapid increases in
production of various forest products, the further improvement of industrial structure and the
gradual upgrading of Chinas status in the worlds forest product market, but China does not
yet perceive itself as a major power in the forest industry of the world.
In 2006, the total forestry production value reached 1.07 trillion RMB, the timber yield was
66.12 million m, the volume of fiber wood increased and large-diameter timber decreased,
and there was enormous potential for increased timber product consumption. The trade value
of timber and wood products continues to grow. In 2006, the total trade value of forest
product imports and exports reached US$47.07 billion. Timber products were chief imports
and exports of forest products and the Russian Federation maintained its position as the
principal source for timber imports. Among forest product imports in 2006, the import
volumes of logs, waste paper and wood pulp ranked first in the world, and those of paper and
paperboard rose to second behind the United States.
Forests have mighty service functions. Forest recreation in China is developing in leaps and
bounds. In 2006, all the forest parks across China received a total number of 213 million
visitors and the direct tourism income, most of which comes from entrance tickets, reached
11.83 billion RMB. China has also witnessed significant progress in the development of urban
forestry. In 2006, the urban green coverage rate reached 32.54% and, in 2007, the State
Forestry Administration (SFA) issued appraisal indicators of national forest cities. The
interrelationship between forests and water resources has increasingly become a hotspot issue
arousing peoples attention. The Research of Chinese Sustainable Forestry Development
Strategies puts forward strategic goals related to forest vegetation development and water
protection. The Chinese government attaches great importance to the conservation of
biological diversity. By the end of 2006, China had established 1,737 nature reserves of
various types and levels with a total area of 120.13 million ha, accounting for 12.51 percent of
the total land area of the state. The Chinese government also highlights the efforts of forestry
development to respond to climate change and actively advances the CDM (Clean
Development Mechanism) project on carbon sequestration by afforestation and reforestation
under the Kyoto Protocol. In July of 2007, the China Green Carbon Fund was founded.
The framework of Chinese forestry policies, legislation and law enforcement is continuously
improving and forest-related policy-making, legislation and law enforcement have become
more scientific and democratic. Policy changes e.g. the historic transition of forestry
development strategies, the implementation of a classified forest management system, the
establishment of compensation systems for ecological forest benefits, the reform of the
collective forest property right system, and the advancement of modern forestry development
in a holistic way have had significant and profound impacts on forestry development.
Forestry status to 2020
According to the Eleventh Five-Year Forest Plan and the National Plan for Long- and
Medium- Term Forestry Development issued by the SFA, by 2020, Chinas forestry will have
basically achieved the strategic goals of establishing an improved forest ecology system, a
developed forest industry system, and a flourishing ecological culture system, thereby
entering a new era of sustainable development. The major development indicators include a
newly afforested area of 29.60 million ha, the forest coverage rate reaching 23.46% of the
total land area; an area of nature reserves throughout China of 161.2 million ha, accounting
for 16.80% of the total land area of the state, with the total number of nature reserves of
various types (e.g. forests and wildlife) reaching 2,300, thereby providing a good standard of
protection to 95% of the wildlife species of national protection importance, and all typical
bio-systems; the number of wetland reserves across the country reaching over 600, including
around 80 wetlands of international importance, and the effective protection of over 60% of
the natural wetlands; an area of desertification control of 20 million ha; urban tree coverage
reaching 35% in 70% of cities throughout China; the rate of quality seeds in plantations
reaching 65%, the unit stock volume per hectare of existing timber plantations reaching
approximately 100 m, and the contribution rate of science and technology advancements to
forest economic growth reaching 50%.
Forecasts of timber supply and demand to 2020
In line with the improvement of peoples standard of living, increases in demands for housing,
furniture and paper, increases in overseas demands for Chinese forest products, and mutual
substitutions among wood and other materials e.g. steel, plastic and concrete, it is
pre-estimated that the whole countrys timber demands in 2020 will be 450-470 million m,
the supply of commercial timber will be approximately 304 million m, and the gap between
timber supply and demand in China will be around 150-170 m. So a shortfall between supply
and demand will still exist.
China has formulated policies to encourage the development of timber forests. It is expected
that the whole countrys forest area will reach over 220 million ha, the forest stock volume
will be 14.5 billion m, the area of fast-growing and high-yield forests will be 13.33 million
ha and the average annual forest increment will reach 20 m per ha in 2020. Increases in
timber yield will come from the improvement of forest quality. The improvement of annual
increment and the gross stock volume provides possibilities for increasing the sustainable
forest harvest. In addition, thanks to the amelioration of quality seeds and intensive
management in the timber forests, the unit yield will be increased and more timber can be
produced based on a constant forest area. China will relatively reduce demands for
roundwood in the future, by developing processing and utilization technology, improving the
integrated utilization of wood, through economical utilization of wood, recycling utilization,
and adopting other measures to significantly ease the shortfall in timber supply in China.
Prospect and outlook for the forest industry
Chinas forest product processing industry will maintain and extend its processing scale,
improve production efficiency, the utilization of wood and the industrys profitability, and
further upgrade product quality and increase the variety of products. With the deepening of
economic globalization and Chinas economic development, the core competitive strength of
Chinas forest products processing industry will shift from a mainly cost basis, to integrated
competitiveness of technology, scale and costs. Forest product processing enterprises will
transform from being pulled by exports and pushed by resources, to being enterprises of self
research and development. The economic growth of the forest industry will change from an
extensive pattern to an intensive pattern. The future development of Chinas forest industry
will be characterized by fast but moderate growth, based on an optimized industrial structure,
with improved ecological benefits and reduced energy consumption.
In the future, the state will advance forest development under non-public ownership and
encourage various investment groups including foreign capital and private capital to invest in
the forestry sector to continuously enhance the capital capacity of the forest industry,
strengthen enterprises initiative in developing new products, increase the capital investment
in product research and development, reinforce industrial regulation, and gradually form an
efficient industrial mode. With the emergence of various trade barriers and the continuous
development of forest certification, changes will happen in the product mix, patterns and
targeted countries that import Chinese forest products. Overseas forest resource acquisition
and cultivation, processing and marketing will be increasingly promoted and the
market-orientation and internationalization of Chinas forest industry will be further
advanced.
Status quo and prospect of bio-energy
In 2007, the SFA organized the formulation of the National Energy Forest Planning and the
Eleventh Five-Year Plan Construction Plan for Forest Bio-diesel Raw Material Production
Base and successively collaborated with the China National Petroleum Corporation, China
National Cereals, Oils and Foodstuffs Corporation (COFCO) and State Grid in the
construction of oil energy forest bases, implementing projects on industrialization of
bio-diesel production, investing and operating biological power stations and so forth.
However, generally speaking, the utilization and development of forest bio-energy in China is
still in its initial stage. In spite of early-phase achievements in fields including bio-diesel and
wood-based solid fuel and electricity generation, it has not yet entered the stage of practical
industrialization.
The priorities of Chinas bio-energy development in the next 15 years include biomass
electricity generation, methane engineering, biological liquid fuels and bio-based solid formed
fuels. By 2020, bio-based electricity generators will produce 30 million kilowatts, the
production volume of biological liquid fuels will be 10 million tonnes, annual methane
utilization will be 40 billion m, the production volume of bio-based solid formed fuels will
be 50 million tonnes, and the annual utilization of bio-energy will account for 4% of energy
consumption. Forest bio-energy development will be oriented on market demands and
accelerate the construction of a number of oil energy forest bases and wood-based energy
forest bases.
Importance of forest ecological benefits
Forests are the core terrestrial ecosystem and the most abundant and stable form of carbon
storage. Forests constitute gene, natural resource, water conservatory and natural energy
banks. With their functions in regulating climate, conserving water, maintaining soil and
water quality, protecting against wind and stabilizing sands, ameliorating soil, reducing
pollution and so forth, forests play a decisive and irreplaceable role in improving the
ecological environment, safeguarding the ecological balance, and protecting the basic
environment for human subsistence and development. Among various ecosystems, the forest
ecosystem has crucial and direct effects on the sustainable socio-economic development of
China and the improvement of peoples lives.
The main direction of Chinas modern forestry development at present and for a certain
period into the future is to construct an improved forest ecology system and maximize the
ecological benefits of forests. Meanwhile, to complement the continuous acceleration of
forest cultivation and reinforcement of timber supply capacity, China will further strengthen
natural forest protection and nature reserve construction, advance the key forest programs,
and develop forest carbon sequestration and urban forestry, to effectively maximize the
multiple purposes, functions and benefits of forests and provide abundant biological products
and services for the whole society.
Social benefits of forests
The social benefits of Chinese forests are shown in the following three aspects. Firstly, forests
can meet many of the needs of peoples lives. The development of urban forests and forest
parks has occurred with remarkable progress under policy-making and legislation on urban
forestry, and has improved the environment in settlements and urban areas and provides
locations for forest tourism and recreation. Thanks to Chinas attention attached to the
regulation of relationships between forests and water, the protection of forest and wetland
biodiversity and the response of forest development to climate change, forests in China meet
peoples needs for a sound ecological environment and help to safeguard peoples physical
health. Meanwhile, the ecological philosophy and rich cultural connotations carried by forests
can fully meet the publics needs for recreation and culture. Secondly, forest development
helps advance the political construction of socialistic democracy. The development of
participatory community forestry and the implementation of pilot participatory land-use
planning, forestry program construction, and forest monitoring and evaluation, have
accelerated environmentally-friendly and economically feasible land and forest resource
management.
Thirdly, forestry development can improve peoples, especially farmers, incomes. The
implementation of the reform of the collective forest property right system enables forest
farmers to have ownership of forest trees and use rights to forestlands, by distributing forests
and mountainous lands to households. Meanwhile, China is enhancing ecological protection
by implementing the Project on Conversion of Croplands to Forests, while simultaneously
rural poverty is alleviated by financial and food subsidies and land-use change compensation.
The development of small-scale rural forest product processing increases employment
opportunities and forest farmers incomes, while forest tourism also plays a role in
diversifying and increasing peoples incomes, and has effectively advanced the development
of a new type of rural area.
Opportunities and challenges for forestry during globalization
With the development of globalization and regionalization, the internationalization of Chinese
forestry has accelerated and international contacts in various forest-related fields have become
increasingly closer. The opportunities and challenges for Chinas forestry during globalization
will have increasing impacts on Chinas socio-economic development and forestry
development.
Under the framework of a global free trade market, Chinese forest product production and the
import and export trades will develop steadily, with increased vitality. Globalization will
effectively encourage the Chinese forest industry to develop towards a global-market-oriented
economy, and to obtain more favorable conditions and preferential treatments in utilizing
international resources and markets and developing foreign trade. It can also advance the
Chinese forest industry by encouraging acceleration of management system reform and the
transformation of enterprise management mechanisms to upgrade the enterprises
technologies and management. Meanwhile, it also facilitates the improvement of the
investment environment and the absorption of more foreign capital invested in the forestry
sector.
Globalization not only brings new opportunities for China to make full use of both domestic
and international markets and resources, but also brings challenges to the sustainable
development capacity of the Chinese economy and society. In order to survive and develop,
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after economic globalization, the Chinese forest industry will have to develop professional,
intensive and large-scale management as soon as possible, and drive the development of
middle- and small-scale enterprises by deepening the reform of state-owned enterprises and
reorganizing and fostering corporation groups or multinational companies. It will also have to
use new and sophisticated technologies to improve industrial automation and management to
ensure it holds and strengthens its share in fiercely competitive international markets.
Consequently, new challenges are produced in terms of industrial equipment, product
structure, technological levels and newly-emerging industries. China will also have to further
advance its forest law enforcement and execution, promote forest management certification
and COC (chain of custody) certification of forest products, and establish and gradually
implement the green procurement of forest products, so as to rapidly advance Chinese forestry
in an environmentally friendly and sustainable direction.
Measures for harmonious development between society and forests
According to the overall goal to construct a harmonious society put forward by the
Chinese government, as a sector of importance in ecological protection, provision of forest
products and cultural service during national socio-economic development, forestry maintains
a significant status and crucial role in the harmonious development between the society and
forests. Therefore, Chinese forestry will strengthen the development of the forest ecology
system, the forest industry system, and the forest culture system, improve forestry quality,
accelerate the innovations of forestry systems and mechanisms, upgrade and modernize
forestry, and advance the construction of an ecologically aware civilization to realize the
harmonious development of both society and forestry.
The main measures include strengthening ecological improvement mainly through
afforestation and greening and ameliorating the ecological state of national land; reinforcing
forest management and protection and improving the forest quality; enhancing nature
protection and strictly conserving biodiversity; developing the forest industry, including
ensuring the provision of abundant forest products and services; and focusing on the
reinforcement of forest culture and the construction of an ecologically aware civilization. On
the one hand, China plans to construct a green homeland of forest cities, advance the
development of urban and rural integration, meet societys needs for ecological products, and
achieve the goal of developed production, high living standard, and improved ecology. On the
other hand, China will also widely develop education on ecological civilization1 and promote
an ecologically aware culture with emphases on the development of forest culture, flower
culture, bamboo culture, tea culture, wetland culture, wildlife culture, eco-tourism culture and
green consumption culture2.
Ecological civilization is a concept that forms a new requirement for achieving a well-off society.
The concept was initiated by General Secretary Hu Jintao at the Communist Party of Chinas (CPC)
17th Congress. It means harmonious development between human beings and nature.
2
The term culture is used here to refer to related concepts, products, spirit and awareness.
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1. INTRODUCTION
Background
During the first thirty years of the Peoples Republic of China, the central task for forestry
was timber production, which resulted in degradation of fragile environments. However,
forestry, as an important industry, made an enormous, non-substitutable contribution to the
recovery and development of the national economy, by providing a large volume of timber
and forest products during the early stage of P.R. China. Subsequently, a series of forestry
ecological and environmental programs was developed, which promoted the development of
forestry, improvement of ecological and environmental quality, and healthy development of
the national economy. With the arrival of the new century, the Chinese government has spent
substantive money on the Six Key Forestry Programs. The aim of the key programs is to
address ecological and environmental issues, establish green safeguarding systems with
regard to forestry and plant vegetation for the countrys ecological well-being, and contribute
to the development of an ecological civilization, with a global recognition of good ecology
in China.
The evolution process of forestry in China has experienced stages of development, throwback,
destruction, redevelopment and rapid development since the foundation of P.R. China. The
main task of forestry has been transferred from timber production into ecological construction,
since a resolution of accelerating forest development was made by the Central Committee of
the Communist Party of China (CPC) and the State Council in 2003. In the resolution of
accelerating forest development, the strategic role of forestry in society and the economy was
recognized, a development strategy for forestry focusing on ecological construction was
advanced, the orientation of forestry reform and a series of policies were confirmed, and an
innovative reform of systems, mechanisms and policies was prompted. Subsequently, the
development of forestry entered into a new epoch in China.
Achievements in forestry ecological construction have been made, based on the Six Key
Forestry Programs. From 2001 to 2005, the total area of afforestation and reforestation was
39.33 million ha, 34.1% higher than that during Ninth Five-Year Plan. Among these areas,
33.03 million ha resulted from activities under the Six Key Forestry Programs, taking up
83.98% of the total afforested/reforested areas. 12 billion trees have been planted, with 2.75
million people involved in voluntary planting initiatives. With the full implementation of the
Six Key Forestry Programs, financial inputs in forestry increased drastically. During the
Tenth Five-Year Plan period, 189.2 billion RMB was invested in forestry, 38.9 billion RMB
comes from the National Basic Construction Budget (this is 2.28 times that in the Ninth
Five-Year Plan), 127 billion RMB comes from the Central Special Finance Budget (6.69
times that in the Ninth Five Year Plan, and 23.3 billion RMB is a discount loan for the Sand
Preservation Project.
Based on the requirements of the national economy and for social development, the Chinese
government initiated the Eleventh Five-Year Planning of Forestry Development and Strategic
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Objectives of Middle-long Term for Forestry Development. Under this plan Chinas forestry
development will work to achieve the following three steps in the future:
(1) Raise the national forest cover to 20% and stocking volume to 13.2 billion m3 by
2010, bring all deteriorating environmental conditions, nationwide, under initial
control and rationalize forestrys industrial structure, and ensure the gross output
value of the forest industry reaches 1200 billion RMB.
(2) Major achievements in ecology conservation and construction from 2011 to 2020.
The overall objectives are to increase national forest coverage to over 23% by 2020,
solve the major ecological problems in key regions, significantly improve ecological
conditions nationwide, and enhance forest industrial strength.
(3) Enter a new stage of sustainable forestry development in China from 2021 to 2050.
Increase and maintain the forest cover to over 26% by 2050, build a picturesque
landscape, bring ecological conditions into a favorable cycle, alleviate the conflict
between supply and demand of forest products, and establish a comparatively
complete forest ecosystem and a comparatively developed forest industrial system.
Forest distribution and its coverage
The results of the Sixth National Inventory on Forest Resources (1998~2003) showed that
forestry has made significant improvements, characterized by a continuously increasing forest
resource area, improved forest quality, reasonable structure, and gradually working towards a
perfected national forest management system. The total forest resource area has reached
174.91 million ha. Contrasted to the Fifth National Forest Inventory, forest area has increased
by 15.97 ha, with national forest coverage increasing from 16.55% in 1998, to 18.21% in
2003. The stocking volume of forestry was 12.46 billion m3, which increased by 889 million
m3 compared with the previous inventory. Especially, the stocking volume of planted forests
increased markedly, by 490 million m3, thereby accounting for 55% of the net increment of
stocking volume since the last inventory. In terms of forests geographical distribution, eastern
and central China have a higher concentration of forest resources than western China. Forest
coverage is 34.27%, 27.12%, and 12.54% in eastern, central and western China, respectively.
Main issues
It must be recognized that the development of forestry still does not meet overall national
economic and social requirements, although there have been great achievements in forestry in
China during the past decades. Some issues still exist, such as various ecological construction
tasks, shortages of total forest resources, high pressure on resource management, low intensity
management, shortfalls in supply of some forest products, an irrational forestry industry
structure, systemic impediments to forestry, and insufficient forestry infrastructure.
Additionally, the support systems for forestry science and development of senior personnel
need to be strengthened.
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Research process and methods

The International Cooperation Department of the SFA was responsible for organizing related
sectors to draft this report. Practically, the report was prepared by the Research Institute of
Forestry Policy and Information of the Chinese Academy of Forestry in conjunction with the
six departments from the SFA, and the China National Forestry Economics and Development
Research Center.
The initial study commenced in May 2007. The draft report was completed and updated on
the basis of expert comments and suggestions from January to March 2008. The final report
was completed and submitted to FAO at the end of May 2008. The following methodologies
were applied:
(1) Data and information collection. To ensure the authority of the report, all data and
information were collected from statistical reports of forest resources and forest economy
issued by official departments. Similarly, authorized study reports, for example, Strategic
Study of Forestry on Sustainable Development in China, were also important documents
contributing to the analysis.
(2) Expert workshop and consultancy. To ensure the scientific reliability of the report, experts
from natural science, social science and policy management sectors discussed the outline,
drafted the report and gave suggestions and comments for inclusion in the report.
Structure of the report
The report includes four aspects. The first is a current analysis of Chinas forestry situation,
the second is analysis of impact factors on China forestry, the third is a perspective of national
development to 2020, the fourth is a forecast study of Chinas forestry development to 2020.
The current analysis of Chinese forestry includes the following topics: main issues faced by
Chinese forestry, introduction of forestry trends in the next 10 years, the status of forest
resources, timber and forest products, wood energy, non-wood forest products (NWFPs),
services of forests, policy and institutional arrangements, and the main issues in forestry.
In the analysis of impact factors on Chinese forestry, topics include: impact of social
development, political institutions, economic change, globalization and regionalization,
technology evolution, and global issues affecting forestry.
In the perspective of national development by 2020, possible developments in society, the
economy, political elements and institutions have been forecasted, and a perspective of
national development has been proposed.
In the forecast study of Chinas forestry development to 2020: status of forest resources,
timber and forest products, wood energy, NWFPs, services of forests, and social functions of
forest were forecasted. Measures and follow up actions adapted to forestry development were
suggested.
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2. CHINESE FORESTRY THE STATUS QUO

Forest resource development status
According to the Sixth National Forest Resource Inventory, Chinas forest area and stock
enjoys continuous rapid growth and forest coverage is steadily increasing. Forest land erosion
volume has been reduced and forest cutting and conversion to other land-uses is also
declining. Forest quality has improved moderately, and forest structure has been further
optimized. Non-state-owned forests have rapidly developed, and forest ownership is
becoming increasingly diversified. These factors showcase that Chinas forestry construction
has entered a new fast-growing phase, with forest resource conservation and development
being in a benign state.
Forest resources overall status quo
(1) Forest resource total volume: Chinas total forest area is 174.91 million ha, with 18.21%
national forest coverage. The total standing stock is 13.62 billion m3, with the forest inventory
containing 12.46 billion m3. Excluding Hong Kong SAR, Macao SAR and Taiwan P.O.C.,
Chinas forest area3 is 172.79 million ha, with standing stock volume of 13.26 billion m3, and
a forest inventory of 12.10 billion m3.
Chinas national woodland area is 282.80 million ha, measured by the recently established
woodland classification. There are 169.02 million ha of forest land, accounting for 59.77% of
the whole woodland area, 45.30 million ha of shrubs accounting for 16.02% of the whole
woodland area, 6 million ha of open forest land area, accounting for 2.12% of the whole
woodland area, and 57.32 million ha of other forest land area, accounting for 20.27% of the
whole woodland area.
The national total standing stock volume is 13.26 billion m3. The forest stock volume is 12.10
billion m3, constituting 91.24% of the total standing stock. Open forest stock is
128.1639million m3, 0.96% of the total standing stock, while scattered tree stock volume is
710.33 million m3, comprising 5.36% of the total standing stock, and four-side tree stock4 is
323.23 million m3, accounting for 2.44% of the total standing stock.
(2) Forest resource regional distribution: For quite a long time, Chinas forest resources
were unevenly distributed due to human activities and natural disasters or disturbances. Major
forest resources are mainly situated in the main river sheds or in mountainous areas or hilly
lands.
Viewed from the geographical aspect: Forest resources are abundant in the northeast and
3
Forest area includes the forest land, bush etc according to Chinas standard of forest statistics. Forest
land is defined as land where the density of stand canopy is more than 20% of the land area.
4
Four side tree stock refers to trees planted on the fringes of villages, watercourses, roads and
houses.
16
southwest remote provinces (autonomous regions, and municipality cities) as well as in

southeast and south China, especially on hilly lands. Conversely, in the broad area of the
northwest region, in central and western parts of Inner Mongolia, the main part of Tibet, the
economically well developed northern China, and the central plains as well as in the lower
reaches of the Yangtze River and Yellow River area, forest resources are relatively smaller.
Viewed from the main watershed aspect: Of Chinas ten watersheds, forest resources are
mainly scattered in seven of them: the Yangtze River, Heilongjiang River, Pearl River, Yellow
River, Liao River, Hai River and Huai River. The land area of the above seven watersheds
accounts for half of Chinas territorial area, the forest area in these watersheds accounts for
70% of the total national forest area. Forest resources in the Yangtze River watershed and
Heilongjiang River watershed comprise around 50% of the whole nations forest resources.
Forest stock in the seven watersheds accounts for more than 60% of that of the whole nation,
while Heilongjiang River watershed takes the lions share of the above seven watersheds in
terms of forest stock and forest coverage. Forest coverage in the Yellow River, Hai River and
Huai River watersheds is below the national average level (see Table 1).
Table 1. Forest resource distribution catalogued by watershed
Watershed
Forest coverage
Forest area (10000
Forest stock
ha)
(10000 m3)
Yangtze River
30.53
5495.11
316773.07
Heilongjiang River
45.29
3866.38
320572.81
Pearl River
39.91
1764.60
69570.56
Yellow River
13.62
1024.71
40996.36
Liao River
23.50
516.21
13667.26
Hai River
11.40
299.35
5041.42
Huai River
11.41
307.34
8713.37
Viewed from the main forest area aspect: China has categorized five forest areas, namely: (i)
Northeast Inner Mongolia forest area, (ii) southwest mountainous forest area, (iii) southeast
low mountain and hilly forest area, (iv) northwest high mountains forest area, and (v) tropical
forest area. Their total land area accounts for 40% of the total national territory area, and
encompasses 80% of the nations forest area. The forest stock in these areas accounts for 90%
of that of the whole nation (see Table 2).
17
Table 2. Forest resource catalogued by main forest area

Forest area
Northeast
Inner
Forest
Forest area
Forest stock
coverage
10000 ha
(10000 m3)
Mongolia
62.17
3778.49
315593.62
Southeast Low Mountain and
48.18
5358.48
210297.51
Forest Area
Hilly Forest Area
Southwest
High
Mountain
20.69
3910.61
491348.65
High
Mountain
36.81
478.63
48991.95
38.91
1030.43
90287.24
Forest Area
Northwest
Forest Area
Tropical Forest Area
Forest coverage change and regional difference

(1) Forest coverage change: To date, China has conducted six comprehensive forest resource
inventories. According to the fifth and sixth forest resource inventories, forest coverage was
raised to 18.21% in 2003, from 16.55% in 1998. See Table 3 for historic inventory data.
Table 3. National forest resource inventory data
Year
Forest land (108hm2)
Forest resource area
(108m2)
Forest coverage (%)
Forest stock volume
(108m3)
Standing
stock
volume (108m3)
1973-1976 1977-1981 1984-1988 1989-1993 1994-1998 1999-2003

(First)
(Second)
(Third)
(Fourth)
(Fifth)
(Sixth)
2.58
2.6700
2.6700
2.6300
2.63295 1.690193
1.2217
1.1528
1.2465
1.45238
1.58941
1.7491
12.70
12.00
12.98
13.92
16.55
18.21
106.7
112.7
124.56
119.5
124.9
136.18
(2) Major regional difference: Generally speaking, Chinas forest resource is mainly located
in the Northeast Inner Mongolia forest area, southwest high mountain forest area, southeast
low mountain hilly forest area, northwest high mountain forest area and tropical forest area.
These forest areas account for 40% of the nations whole territory area, while their forest area
accounts for 80% of that of the whole nation, and their forest stock accounts for 90% of that
of the whole nation. In terms of forest coverage, forest coverage in the eastern region is
34.27%, in the central region it is 27.12%, while forest coverage in the western region is
merely 12.54%. Forest coverage in the five northwest provinces, in particular, (autonomous
regions) is only 5.86%5.
Forest ownership change
At present, China has an area of 285 million ha of forest land, of which 170 million ha are
collective-owned forest, comprising 60% of the national total forest land area. In recent years,
5
There are many deserts, grasslands and the Gobi region in these areas.
18
the Central Government and State Council have attached great importance to the Reform of
Collective Forest Ownership System. In 2003, the CPC Central Committee and the State
Council made the Decision on Accelerating the Development of Forestry, under which
deployment of collective forest ownership reform has been given special attention. In 2006
and 2007, the State Council stressed the importance of forest ownership reform in Document
No.1. The 17th National Congress of the CPC made new requirements for the Reform of
Collective Forest Ownership System. These are all significant decisions that have
dramatically spearheaded the reform of collective forest ownership. The Reform of Collective
Forest Ownership System is planned to implement forest management reforms, especially
ensuring that more and more collective forests will be managed by farmers. It is also a major
innovation that will enrich and develop the rural property ownership system. It will mobilize
the enthusiasm of all members of society to participate in forest construction, in the
development and deepening of the socialist market economy and reform of forest systems.
According to the Sixth National Forest Resource Inventory data, the proportion of
non-state-owned forest area has reached 20.32%. For newly afforested land, the
non-state-owned proportion is as high as 41.14%. The non-state-owned portion of the forest
industry enjoys fast growth, and a diversified industry pattern has been preliminarily formed.
In the Tenth-Five-Year plan, non-state-owned forest enterprises comprise 70% of all the
countrys forest enterprises, while non-state-owned forestry production accounts for 50% of
the value of all the nations forest product output. The proportion of non-state-owned
afforestation in the whole nations afforestation is 62%. In terms of industry inputs, more than
90% of investment capital is coming from the private sector or foreign sources. The change in
ownership structure shows a tendency towards becoming more diversified in terms of both
forest ownership and investment structure.
Commercial forest management
(1) Total volume of commercial forest change: China has adopted a forest development
strategy that has ecological construction as its main core. With the implementing of the
Natural Forest Protection Program and forest classified management, tree species structure
has changed significantly, and the area of forest resources allocated to timber production has
been reduced. A comparison between the two latest forest inventories shows that the timber
forest area has been reduced by 19.46 million ha, with an annual average reduction of 3.91
million ha. The timber forest stock volume has been reduced by 1.30 billion m3, an average
annual reduction of 258.05 million m3. Mature timber forest and over-mature timber forest
area has been reduced by 3.03 million ha, with an average annual reduction of 583.3 000 ha.
The stock volume in mature and over-mature forests has decreased by 729.90 million m3, with
an average annual decrease of 139.90 million m3.
(2) Commercial forest management economic analysis: Chinas plantation area is large, but
the management level is low with a mainly monocultural species structure. The national
plantation area is 53.26 million ha, ranking first in the world. Plantation stock volume is 1.5
billion m3, accounting for 12.44% of the total forest stock volume. The forest formation area
19
is 32.29 million ha, which accounts for 60.64% of the total plantation. Chinas overall
plantation management level is not high, compounded by the fact that plantations are mainly
in the young or middle age classes; 77.40% is classified as young or immature. The average
plantation unit area stocking volume is 46.59 m3/ha, which is equivalent to 55% of the
average level of all forest stands. In national forest stands, fir, Masson pine and poplar are the
most widely planted species, collectively accounting for 59.41% of plantations; coniferous
forest comprises 70.69% of plantations. The monocultural structure of most plantations is
regarded as a negative factor.
(3) Forest quality is not high and the forest land utilization rate is low: Forest stand
average per hectare stock volume is 84.73 m3, equal to 84.86% of the worlds average level,
and ranking Chinas forests 84th in the world for stock volume. In the provinces, where
state-owned forests take the lead, and where the over-mature forest portion is large, forest
stand unit area stock volume is comparatively high, with Tibet being the highest at 268.33
m3/ha. The current woodland area is 285 million ha, of which 175 million ha are land under
forest, comprising 61.4% of woodland. In some provinces (regions or municipalities) the
forest area is less than 50% of the woodland area.
(4) Large potential in expanding forest resource: At present, China has 57.3232 million
hectares (20.27%) of forest land that are not covered by forests or other woodlands. Of this,
40.21 million ha are wastelands or hilly lands suitable for forests, and 14.51 million ha are
sandy areas suitable for forests. These areas can be used to further develop forest. There are
18.02 million ha of clear-cut areas, 807.8 000 ha of burned areas, and 6 million ha of open
forest land with thin cover of trees and low production ability, not yet up to the forest standard.
All this land offers potential to increase forest resources, and raise forest coverage. At the
same time, it is manifest that Chinas tree planting task is still arduous, and needs all of
society to be involved in planting efforts.
Forest resource sustainable management
(1) Forest resource overall quantity and quality change: During the Fifth and Sixth
National Forest Resource Inventory interval, forest stand stock has increased 2.59 m3 per ha,
the average number of trees in each hectare of forest stands increased by 72, while the
average tree diameter in forest stands narrowed by 0.3 centimeter (mainly as a result of more
new planting compared to harvesting). Average tree density in forest stands has risen as a
whole. The forest area with 0.2-0.4 crown density6 has declined by 1.61 percent, while the
area with 0.6 and above density has risen by 2.67 percent. The young forest area portion of
the forest estate has declined by 3.19 percent, the middle and near-mature forest area portion
has increased by 1.21 and 1.78 percent respectively. Overall forest structures have been
upgraded. The broad-leaved forest area proportion has increased by 2 percent, and the
coniferous and broad-leaved mixed forest area has increased by 1 percent. Forest structure has
become more diversified, and forest quality been improved as a whole.
Crown density means the percentage of the canopy area to forest land area.
20
(2) Six Key Forestry Program implementation has formed a solid base for China forest
resource sustainable development: At the beginning of the 21st century, the Chinese
government developed and implemented a forestry development strategy with ecology
construction as the mainstay. The Chinese government has implemented the following six
forest programs: (i) Natural Forest Protection Program, (ii) Conversion of Cropland for Forest
and Grassland Program, (iii) Sandification Control Program for Areas in the Vicinity of
Beijing, (iv) Key Shelterbelts Program of Three Norths and the Middle and Lower Reaches
of the basin of Yangtze River, (v) Wildlife Conservation and Nature Reserve Development
Program, and (vi) Fast-Growing and High-Yielding Forests Base Construction Program. The
Six Key Forestry Programs have involved more than 97% of Chinas counties, cities, regions
or banners 7 , with the planned afforestation area exceeding 76 million ha, and planned
investments of 700 billion RMB. The forest construction under the six Programs covers
resource protection, national land greening, soil erosion control, sand prevention and control,
wetland protection, bio-diversity conservation and commercial forest base construction.
(3) Forest resource protection and development of a safeguarding system have been
preliminarily formed: As a first step in establishing a comprehensive forest protection and
safeguarding system, a forest resource management administration system has been set up.
China has basically formed a forest resource management administration system, forest
administration management being the main body of the system, with resource monitoring and
forest resource supervision being the two assisting components. Secondly, a comparatively
complete forest resource management administration legal system has been formed. Since the
period of major economic reforms and liberalization, China has successively promulgated 6
laws directly related to forest resource management administration, 14 forest administrative
statutes, and 31 forest sector rules and regulations. Besides, local governments have set forth
local statutes and regulations, more than 300 in total. Thirdly, China has set up a
comparatively complete forest resource monitoring system. The state government has
successively promulgated more than 60 technical standards, rules, regulations and norms
related to silviculture, forest management, and resource supervision. Fourthly, establishment
of Chinas forest certification system has made continuous progress. Since September 2001,
when a China Forest Certification Working Group was formed, and especially since
September 2007, when the State Forest Administration promulgated the China Forest
Certificate for Forest Management and China Forest Management and Multi-site Chain of
Custody as forest sector standards, Chinas forest sustainable management has accelerated.
Forest industry development overall status
(1) Forest industrys total output value has increased rapidly: During the Tenth Five-Year
Plan, Chinas forest industry has maintained good progress and momentum, with total forest
7
A banner is a special administrative region in China.
21
output value increasing at a rate above the 6% to 8% of GNP growth. Forest product
production has accelerated, industry structure has been further upgraded, and forest
enterprises economic profits have improved. In 2006, the forest economys total volume
continuously increased, forest industrys total output value reached 1065.22 billion RMB, an
increase of 219.35 billion RMB and a rise of 25.93% compared with 2005. The first, second
and tertiary industry output value was 470.88 billion RMB, 519.84 billion RMB and 74.5
billion RMB respectively, increases of 8.11%, 49.1% and 20.82% respectively, compared with
2005.
(2) The position in world forest product market is on a gradual rise: In the
Tenth-Five-Year Plan, Chinas forest industry has made remarkable progress, and has
gradually become a major world centre for forest product production, processing and trade.
Wood-based panels, including plywood and fibreboard, have increased production in the last
4 years to rank first in the world. Wooden floor production is second in the world, close
behind the European Union; the wooden furniture production output value reached almost 400
billion RMB, exceeding Italy, to rank first in the world. Gum rosin production is also first in
the world. The output in 2006 was 9.09 million tonnes. Paper and paperboard total production
volume and consumption volume both ranked second in the world.
(3) Not yet a world forestry industry giant: In recent years, Chinas main forest product
production volume and trade volume have enjoyed substantial growth and China has become
a major player in the global forestry industry. However, due to the small scale of most forestry
enterprises and production of many low grade products, as well as enterprises weak
innovative capacity, Chinas forest product market competitiveness has not been strong.
Compared with other developed (forestry industry) countries, China still has great scope for
development.
Timber and timber product production and consumption level
Timber and timber product production
(1) Logs and sawnwood: From 1997 to 2002, Chinas planned timber production volume
decreased from 63.95 million m3 to 44.36 million m3, a drop of 30.6%. In 2006, Chinas
timber production reached 66.12 million m38, with the majority of this resurgence coming
from increased production in forest plantations. In the years to come, Chinas domestic timber
production will mainly depend on a steady increase in plantations. However, large-diameter
timber and high quality hardwood timber will be the main type of imported timber for quite a
long time (see Table 4).
This figure means recorded production of Chinas forest harvest in 2006. It is drawn from China
Forestry Statistics Year Book 2006. Chinas planned forest harvest is different to this figure, as are
some researchers estimates of actual production.
22

Table 4. 19972006 planned timber production volume (10000 m3)
Year
Production volume
Industrial timber
Fuelwood
1997
6394.79
5935.0
460.0
1998
5966.20
5556.0
410.0
1999
5236.80
4848.0
388.0
2000
4723.97
4395.72
328.25
2001
4552.03
4197.03
355.00
2002
4436.07
4127.21
308.86
2003
4758.87
4319.86
439.01
2004
5197.33
4712.09
485.24
2005
5560.31
5022.87
537.45
2006
6611.78
Source: China Forestry Statistics Year Book (1997-2006).
6111.68
500.10
In 2006, Chinas sawn timber production volume was 24.86 million m3, an increase of
38.89% of that in 2005. National sawn timber production volume ranked by the top five
provinces in 2006 is detailed in Table 5.
Table 5. 2006 national sawn timber production statistics
Region
Production volume
(10000m3)
Nation
Percentage
2486.46
100
Zhejiang Province
280.59
11.28
Inner Mongolia
264.86
10.65
Hunan Province
242.35
9.75
Shandong Province
223.94
9.01
Guangxi Province
190.50
7.66
1202.24
48.35
Five Provinces in total

Source: China Forestry Statistics Year Book (2006).
(2) Wood-based panels: Wood-based panel industries mainly include plywood, particleboard
and fiberboard. In the most recent 10 years, wood-based panel production has seen a
continuous increase. In 1994 6.65 million m3 were produced, compared with 74.29 million m3
in 2006, an annual average increase of 22.3%.
In terms of product structure, in 2006, plywood production was the main component of
wood-based panel production, equal to 36.7% of total wood-based panel production volume.
Close behind is fiberboard with a production of 24.67 million m3, about 33.2% (of which
MDF takes up 94%) of the total production. Particleboard production volume was 8.43
million m3, only 11.4% of the total volume. Other wood-based panel production was 13.9
million m3, about 18.7% of the whole production.
(3) Wood furniture and wood flooring: Since the economic reforms, Chinas furniture
industry has grown into an important industry with a broad structure encompassing a
23
traditional handicrafts sector, but with mechanical production being the core. At the beginning
of the 21st century, China had become a global furniture producing and exporting giant.
According to the China Furniture Associations statistics, the total output value of Chinas
furniture production increased to 44.6 billion RMB in 1995 from 1985s 2.9 billion RMB. By
2006, it had further increased to 430 billion RMB. During the period 1985 to 2006, average
annual growth was as high as 27%. Chinas furniture is mainly wooden furniture, taking up
80% of the market share. Till the end of 2006, there were 2149 furniture sector enterprises.
At the moment, China has 3000 wooden flooringrelated enterprises, with 1 million people
involved, working in wooden flooring production, marketing and related services. In 2006,
Chinas wooden flooring total output volume reached 233.99 million m2 (of which laminated
flooring totaled 84.71 million m2, solid wooden flooring was 73.55 million m2, wood
composite flooring totaled 51.84 million m2 and bamboo-wood compounded flooring was
6.13 million m2). Annual total value equaled 17.7 billion RMB, which robustly excelled the
national economys development. In national wooden floor markets, the solid wood flooring
share gradually declined, while the wood composite flooring share increased, laminated
flooring kept a steady increase, and bamboo flooring enjoyed a steady rise.
(4) Paper, pulp and paper products: According to the National Light Industry
Administrations statistics, since the Tenth Five-Year Plan, Chinas paper and paperboard
total production and consumption has steadily increased. In 2006, Chinas paper and
paperboard production was 68 million tonnes. Although China has grown into the third largest
paper pulp producing country, grass fiber is still the main material used in the paper-making
industry. Wood pulps portion as a raw material is small in Chinese paper-making. Chinas
paper-making industry is faced with pressures of complying with environment protection
ordinance and matching international competence, at the same time.
Forest timber and timber product consumption
Forest timber product market consumption consists of domestic consumption and exports.
Domestic consumption includes industry and construction timber consumption, farmers
self-produced and consumed timber, and wood fuel consumption. Exports include exports of
logs, sawnwood, wood-based panels, solid wood flooring, wood furniture, wood pulp, paper
and paper products, waste paper and other timber products. In 2006, Chinas total
consumption of timber products (roundwood equivalent [RWE]) was 337.39 million m3.
(1) Industry and construction timber consumption: According to the statistics of the China
Statistics Administration and related departments, and the timber consumption co-efficient of
relative products, it is calculated that in 2006, Chinas construction and industry timber
consumption was 244.97 million m3 (RWE). Among which, construction timber (including
decoration) totaled 87.49 million m3, furniture timber 42.35 million m3, paper-making timber
consumption was 97.02 million m3, coal industry timber consumption was 9.58 million m3,
vehicle and watercraft manufacture, railway, chemical and other materials totaled 8.54 million
m3.
24
(2) Farmers consumed timber and fuel timber: In 2006, farmers self-produced and
consumed timber consumption was 14.6 million m3, while farmers fuel wood consumption
was 28.47 million m3. Ninety percent of farmers self-consumed timber was used for
house-building, about 13.14 million m3 (included in [1] above). Discounting the double
measured volume, farmers self-consumed timber and fuel wood consumption were 29.93
million m3.
(3) Exports: Chinas log export volume was 4300 m3. In 2006, other timber product export
volume equaled 62.48 million m3 (RWE).
Forest product trade
In the last ten years, with Chinas rapid economic development and the pace of globalization,
Chinas forest product industry has not only produced many products, such as wood-based
panels, paper and paper board as well as solid wood flooring, but also its production volume
ranked highest in the world. The countrys giant import and export trade position has become
ever-more apparent. The main feature of Chinas forest product trade is that the major
imported commodity is raw material, while the major export commodity is finished products.
Key forest product import conditions
(1) Logs: Logs are still the largest imported raw materials in forest products. In 2006, the
import volume of logs was 32.15 million m3, valued at US$3.93 billion; year-on-year
increases of 9.5% and 21.1% respectively. In terms of imported logs, the tropical timber
import volume was 7.74 million m3, 24.1% of the total import volume, and an increase of
4.3% on the previous year. The top 10 countries that exported logs to China are listed in Table
6.
Table 6. 2006 Chinese imports of logs by country
Country
Import volume
Percentage
(10000 m3)
Increase rate (%)
Russian Federation
2182.6
67.9
8.9
Papua New Guinea
204.6
6.4
12.5
Malaysia
141.2
4.4
Myanmar
102.7
3.2
4.1
9.4
17.7
41.1
18.7
5.2
65.3
25.3
Gabon
95.8
3.0
New Zealand
90.5
2.8
Solomon Islands
77.5
2.4
Germany
46.8
1.5
Australia
39.0
1.2
Equatorial Guinea
38.1
1.2
(2) Sawnwood: In 2006, imported sawnwood totaled 6.0678 million m3, valued at US$1.69
billion, increases of 1.6% and 12% respectively. Imported sawn wood mainly came from the
25

Russian Federation (1.17 million m3, 19.3%) and United States of America (1.02 million m3,
16.8%). Countries with annual import volume above 100,000 m3 are listed in Table 7.
Table 7. 2006 Chinese imports of sawn wood by country
Country
Import volume
Percentage
(10000 m3)
Increase rate (%)
Russian Federation
117.4
19.3
11.1
USA
102.2
16.8
20.0
Thailand
70.7
11.7
-7.2
Indonesia
45.0
7.4
-37.5
Canada
39.8
6.5
13.7
Malaysia
37.6
6.2
-20.8
Brazil
34.1
5.6
21.8
New Zealand
28.1
4.6
29.5
Myanmar
17.8
2.9
-44.5
Chile
13.2
2.2
-7.7
(3) Wood-based panels: Plywood in 2006, imported plywood was 413.4 thousand m3,
valued at US$197 million, decreases of 29.8% and 28.7% respectively, compared with the
previous year. Imported plywood mainly came from Indonesia and Malaysia. Fibreboard,
particleboard and veneer in 2006, import volumes of these products were 567 000 tonnes,
352 0000 tonnes and 101 000 tonnes, respectively. Import values were US$195.71 million,
US$101.73 million, and US$118.16 million respectively. Compared with the previous year,
the import volume declined by 16.2%, 14.6% and 11.4% respectively. The import value
dropped 14.6%, 11.9% and 2.5% respectively.
(4) Wood pulp and waste paper: Chinas imported wood pulp and waste paper comes
mainly from the United States and Japan, comprising 33.9% and 12.2% of the total import
volume respectively. The import volume of hardwood pulp from Indonesia is also large.
Paper pulp: In 2006, the total volume of imported paper pulp was 7.96 million tonnes, valued
at US$4.39 billion, the largest imported forest product. This was an increase of 4.9%
compared with the previous year; the import volume increased by 17.9%.
Waste paper: National imported waste paper in 2006 totaled 19.62 million tonnes, valued at
US$2.75 billion, an increase of 15.1% and 11.8% respectively on the previous year.
(5) Paper and paperboard: In 2006, total imported paper and paperboard was 4.37 million
tonnes, valued at US$3.4 billion, a decrease of 17% and 4% respectively on the previous year.
(6) Wood furniture: In 2006, total imported wooden furniture was 1,2901 million pieces,
valued at US$118 million, an increase of 68.1% and 44.2% respectively, on the previous year.
26
Key forest product exports

Sawnwood: national exports of sawn wood totaled 808.3 000 m3, and the export value was
US$352.85 million, an increase of 30.2% and 26.7% respectively on the previous year (Table
8).
Table 8. 2006 Chinese sawn wood exports by country and region
Country and
Region
Export volume
Percentage
(10000 m )
Export volume
Increase rate
(10000US$)
(%)
Japan
42.56
52.6
21527.0
61.0
USA
11.36
14.1
3159.9
9.0
8.54
10.6
2914.7
8.3
4.1
5.1
940.2
2.7
3.17
3.9
1023.5
2.9
2.54
3.1
523.2
1.5
South Korea
Taiwan P.O.C.
Vietnam
Hong
Kong
S.A.R.
(2) Plywood: The total export volume of plywood was 8.3 million m3, and the export value
was US$2.91 billion, an increase of 48.5% and 54.9% respectively, on the previous year.
Chinas plywood has been sold to 185 countries or regions. The United States imports the
largest share (2.18 million m3) equal to 26.3% of Chinas total exports. Japan and another five
countries have large import volumes as listed in Table 9.
Table 9. 2006 Chinese plywood exports
Export Volume
Countries
United States
10000m3
Export Value
percentage%
10000 $
percentage%
218.13
26.3
93768.0
32.2
Japan
63.14
7.6
20221.2
6.9
Great Britain
53.95
6.5
16562.1
5.7
South Korea
52.49
6.3
14597.4
5.0
United
Arab
35.42
4.3
9815.1
3.4
Kong
24.73
3.0
6495.1
2.2
Emirates
Hong
S.A.R.
(3) Fiberboard: In 2006, the total export volume of fiberboard was 1.46 million tones and the
export value was US$635.78 million, increases of 51.4% and 60.5%, respectively. Fibreboard
is one of the forest product exports with the largest increased range. Chinas fiberboard has
been sold to 158 countries or regions. Countries with large import volumes were Saudi Arabia
with 208 000 tonnes (14.2%), the United States with 190 000 tonnes (13%), South Korea with
138 000 tonnes (9.5%), Turkey with 120 000 tonnes (8.2%), Canada with 97 000 tonnes
(6.7%) and Russian Federation with 73 000 tonnes (5%).
27
(4) Wooden furniture: The total export volume of wooden furniture was 248 million pieces
in 2006, and the export value was US$8.78 billion, an increase of 37.4% and 39.4%
respectively. Chinas wooden furniture has been sold worldwide. The United States, Hong
Kong S.A.R., Japan and Great Britain are major importers of Chinese furniture. In terms of a
trade model, according to Chinas Customs statistics, in 2006, wooden furniture exported after
value-added processing of imported materials was valued at US$3.57 billion, 41% of the total
value of wooden furniture exported.
(5) Paper, paperboard and paper products: In 2006, the export volume of paper and
paperboard was 3.05 million tonnes, and the export value was US$2.24 billion, increases of
44.1% and 16.8% respectively on the previous year. Paper products exports have rapidly
increased in recent years. The total export volume of paper products was 2.15 million tonnes,
and the export value was US$3.15 billion, increases of 201.8% and 174.5%, respectively on
previous years.
Timber and timber product production, consumption and trade change
Timber production and consumption characteristics and trends
Since 1998, when the Chinese government commenced implementation of the Natural Forest
Protection Project, Chinas timber production and consumption were initially both on a
declining trend. Forest stock volume has increased and in the past several years, so has timber
production. Several important characteristics in timber production have also changed. The
main timber producing areas have shifted from northern locations to the south. Felling has
been converted from natural forests to plantation forest. The proportion of timber produced
for fiber has increased, while timber with large diameter has decreased. The timber product
consumption potential is huge, and the consumption structure has been gradually adjusting to
changing supply conditions.
Although Chinas main forest product output has ranked top in the world, timber per capita
consumption was still merely 0.12 m3, less than 1/5th of the worlds average of 0.68 m3. Paper
and paperboard consumption per capita was 45 kilograms, 80% of worlds average level. In
the next five to ten years, with Chinas steadily growing economy, total timber consumption
will be increased.
Timber and other product trade characteristics and developing trends
(1) Trade volumes will continue to rise, surplus volume further expanded: In 2006, the
value of Chinas forest product (including a number of NWFPs) import and export trade had
reached US$47.07 billion, an increase of 23.8% compared with that of the same time in 2005.
The import value was US$19.39 billion, an increase of 9.99% on the previous year. The
export value was US$27.68 billion, an increase of 33.8%. The forest product trade surplus
28
increased sharply, reaching US$8.29 billion, an increase of 170.7% compared with that of the
previous year.
(2) Wood products were the main component of forest product import and export trade:
In 2006, forest product imports of logs, sawnwood, paper pulp, paper and paperboard, as well
as other kinds of wood-based boards were valued at US$18.49 billion, equating to 95.4% of
all forest product import value. The import value of NWFPs was US$894 million, just 4.6%
of the total forest product import value.
In terms of forest product exports, in 2006, wooden furniture, other wood products, paper
products and plywood export values reached US$24.27 billion, comprising 87.69% of forest
product total export value, other non-wood product export volume was US$3.41 billion, only
12.31% of forest product export value.
(3) Status as a giant in global forest product trading has become increasingly solid: In
2006, Chinas import volumes of roundwood logs, waste paper and wood pulp had reached
the highest in the world. Paper and paper board import volumes had climbed to second place,
closely behind the United States. In 2004, Chinas furniture exports exceeded Italy, ranking
first in the world. In 2006, the export value had been further raised to US$17.47 billion. In
2006, Chinas export volume of all kinds of plywood was 8.3 million m3, an increase of
almost 50% in 2005. In 2004, Chinas plywood export volume exceeded those of the
traditional export giants, Malaysia and Indonesia, ranking first in the world.
(4) Timber imports mainly come from the Russian Federation: In 2006, the Russian
Federation was still Chinas major log import supplier, and the import volume was 21.83
million m3, an increase of 8.9% on the previous year. Although the Russian Federations share
in Chinas total log imports declined moderately, it was still as high as 67.9%. In terms of
sawnwood imports, the Russian Federation, the United States, Thailand, Indonesia, Malaysia
and Canada ranked highest as suppliers.
Forest biomass energy
Forest biomass energy development status
Forest biomass energy is an important renewable resource. It is a vital step to explore the
utilization of forest biomass energy to expand the resource supply, protect the environment
and achieve sustainable development. In 2007, the State Forest Administration compiled a
National Energy Forest Planning and Eleventh Five Plan Construction Plan for Forest
Bio-diesel Raw Material Production Base, and has successively established cooperation with
China Oil, COFCO and the State Grid. Under this plan, China constructed about 66,700 ha of
oil energy plantations in Yunnan, Sichuan, Hunan and Anhui provinces; China also
constructed a Pistacia chinensis seed collection base, as well as implementing a bio-diesel
industrialization project, and put into production a timber-based bio-electricity power plant in
Shandong Province. In Heilongjiang Province and Inner Mongolia, a timber-based
29
bio-electricity power plant is presently under construction.

Despite being a potentially major player in bio-energy production, Chinas forest bio-energy
exploration and utilization is still at a very preliminary stage. To date, although China has
achieved phased results in production of bio-diesel and timber solid fuel electricity, many
initiatives are still in the trial and demonstration stage, and have yet to enter an industrialized
development period.
Policies and regulations that concern forestry bio-energy development
The Chinese government has promulgated a China Renewable Energy Law, which came into
force on January 1, 2006. Related statutes have also been successively established, such as the
Renewable Energy Industry Developing Guild Catalogue, Renewable Energy Generated
Electrical Pricing and Fee Sharing Management Rules and Management Regulations for
Electricity Generation from Renewable Energy. These measures and regulations have
provided clear prescriptions on bio-energy electricity production and have mandated a
bio-energy generated electricity price subsidy. The outline of the Eleventh Five-Year Plan for
National Economic and Social Development has prescribed a renewable energy development
target, and proposed to adopt preferential financial support and taxation as well as
establishing an investment policy so as to encourage and enhance the market share of
renewable energy production and consumption, and raise the renewable energy proportion of
total energy consumption. These measures are good for enhancing forest bio-energy
development.
Replaceable fuel development trend
China is rich in forestry bio-energy resources. Among current forestry bio-energy material,
there are 3 million tonnes of energy biomass that can be used as industrial energy raw
material. If fully utilized, this can replace 2 million tonnes of standard coal, equal to 1/10th of
Chinas fuel energy consumption. According to experts primary estimates, China has 1500
million tonnes of existing agro-forest waste equal to 740 million tonnes of standard coal. The
potential quantity explored equals to 460 million tonnes of standard coal. By virtue of
exploring the utilization of bio-energy sources and realizing bio-energy technologys
industrialization and development, China can effectively increase energy supply and ensure
energys sustainable development.
Non-wood forest products
Main NWFPs and their economic significance
Chinas NWFPs are mainly economic plantation products, bamboo and rattan products, as
well as flowers. Chinas NWFP resources are abundant and widely distributed. To
energetically promote NWFPs will not only help to increase forest resources, but also have an
important influence on refining the ecological environment. With the rise of processing and
30
utilization skills, and development of new products and new technology, forest industry
development will accelerate and forest industry production and benefits that accrue will also
be raised. NWFP development and domestication will enhance agricultural development, with
economic benefits becoming more and more significant. NWFPs will play an ever more
important role in increasing farmers incomes and lifting poor people from poverty. In
promoting mountain area and forest area economic development, these functions are
irreplaceable, being a major channel in spearheading Chinas forestry modernization.
Non-wood forest products resource management status
In 2006, economic forest9, bamboo and the flower industry made significant progress. The
newly planted economic forest area in 2006 reached 403.3 000 ha, an increase of 19.39%
compared with that of 2005. Total economic forest product quantity reached 101 million
tonnes, an increase of 9.66% on production in 2005. In 2006, major bamboo products
maintained momentum, and output of bamboo reached 1312 million pieces in 2006, an
increase of 13.89% compared with 2005. The flower industry also maintained its development
momentum, and output of freshly cut flowers, freshly cut leaves and dried flowers increased
moderately in 2006. The gross output value of the flower industry reached 42.08 billion RMB
in 2006, an increase of 8.9% compared with that of 2005. Chinas NWFP development faces
challenges of uneven regional development, with low levels of management inputs, and little
industrialization and organization.
Services of forests
Forest recreation
Chinas forest recreation is enjoying rapid growth. Till the end of 2006, Chinas forest garden
areas at various levels reached a total of 2067, with a total planning area of 15.68 million ha,
among which there are 660 national forest gardens (including Bai-shan city national forest
tourist area), with an operational area of 11.24 million ha. In 2006, national forest gardens
received 213 million tourists (person/time) exceeding 200 million person/time for the first
time. Direct income from tourists with entrance tickets provided the main revenue, totaling
11.83 billion RMB.
Rapid development of forest gardens has vigorously accelerated the New Countryside
Construction10, and improved the neighboring peoples incomes. According to a specialized
investigation, for 20 years Chinas forest garden construction and forest tourism has benefited
2 700 counties, 12 000 villages and 20 million farmers, and spurred 4 654 villages to be lifted
from poverty, and created about 500 000 job positions for the farmer population. With
incomplete statistics, in 2006, national forest gardens have created about 440 000 job
positions. Based on the National Tourist Administrations estimates of domestic per capita
tourist consumption, in 2006, forest gardens spurred comprehensive tourist income of 95
9
10
Economic forest is forest whose main products include food, fruits, grains, oils etc.
This is a campaign in China whose goal is building a prosperous and civilized new countryside.
31
billion RMB.
Urban forestry
With rapid economic development, the traditional living structure where village populations
predominated has changed. Chinas urbanization has accelerated. Until the middle of this
century, it is expected that Chinas urbanization will increase to 60-70% of the population,
from 37.7% in 2001. To cope with the problems of urban atmospheric pollution, water
pollution and noise pollution as well as industrial solid wastes, urban rubbish, heat island
effects, light pollution etc, urban forestry and constructing forest cities have become hot
issues for Chinas forestry development.
Since the economic reforms and liberalization, Chinas urban forestry construction has made
great progress. Up to 2006, the urban green coverage rate had reached 32.54%. Public grass
area per capita is 7.89 m2. In recent years, Chinas urban forestry construction has seen
vigorous development. Many cities have set clear forest city construction goals; more and
more cities have fixed the norm of a green target to introduce forests into cities, to mosaic city
areas into forests, and generally to build more amiable forest cities for people to live in. In
2007, the SFA published an index of national forest cities, which mainly includes assessment
of the following seven aspects: comprehensive indexes, forest coverage, forest ecological
network, forest health, public leisure, ecologic culture and rural afforestation. The provincial
capital cities of Guiyang, Shenyang, Changsha, Chengdu and non-capital cities at the
municipal level including Baotou and Linan have been awarded the title of national forest
city.
Forests and water
Chinas increasingly acute water resource shortage and large-scale recovery of forest
vegetation have made the forest and water resource relationship a focus issue. To energetically
protect and scientifically manage all sorts of forest vegetation and to make full use of forests
hydrology functions is an important part of water resource management and protection, and a
crucial part of safeguarding Chinas ecological security. The Research of Chinese Sustainable
Forestry Development Strategies has set a strategic goal of forest vegetation construction and
water resource protection. From 2000 to 2010, a cross-sectoral national water resource
utilization and water environment protection construction plan will be made. This plan will
bring forest hydrology into the national water resource management allocation program, and
complete mapping of national water resource protection regions at various grades. The
proposal for preferential protection and management of major water resources would bring
more than 30% of Chinas main water resource area and major river water resource
management and water environment protection into a substantial recovery stage.
Bio-diversity conservation
32
China is a country with rich bio-diversity, boasting more than 30 000 high level plants, 6 347
vertebrates, encompassing 10% and 14% respectively, of the worlds species in these
categories. China is particularly rich in endemic genera of endemic and rare species.
The Chinese government has attached great importance to biodiversity conservation. China
has signed and adhered to obligations under the United Nations Convention on Biological
Diversity and the Ramsar Convention. China has also promulgated a range of
biodiversity-related policies and legislation including the National Strategy for Ecological
Conservation, the Law of the Peoples Republic of China on the Protection of Wild Animals,
the Law of the Peoples Republic of China on the Protection of Wild Flora, General
Guidelines of the Conservation of Nature Reserves and Regulations on Import and Export of
Endangered Species etc. China has also launched wild fauna and flora protection programs
and nature reserve construction programs to enlarge nature conservation areas, to recover
from damage to wild fauna and flora species, raise public awareness of the necessity for
nature protection and bio-energy conservation. China has also made remarkable achievements
in bio-diversity protection scientific research, public education and in situ conservation and ex
situ conservation and species breeding.
Till the end of 2006, the Chinese forestry sector had established 1 737 nature reserves with a
total area of 120.13 million ha of different forest types and at various grades. This is 12.51%
of the national territory area. Construction of nature reserves has effectively protected 90% of
terrestrial ecological systems, 45% of natural wetlands, 85% of wild fauna populations and
65% of higher plant populations. The national protected area network covers 20% of natural,
high-quality forest and 30% of the desert area, making a major contribution to conserving
bio-diversity and promoting sustainable development.
Forests and climate change
Forests comprise the main body of the territorial ecological system and they are also the
largest carbon sink. Forest protection and/or destruction will have a significant influence on
CO2 density in the air, and thus influence global climate change. The Chinese government has
paid special attention to developing forests to curb climate change. In June 2007, the Chinese
government issued Chinas National Program for Climate Change, in which forestrys
importance in carbon sequestration and other functions has been described. To actively
promote an afforestation program within the Clean Development Mechanism (CDM) under
the Kyoto Protocol, China has implemented a World Bank Bio-Carbon Fund Forestry Carbon
Program in Guangxi Autonomous Region. This is the worlds first CDM forestry carbon
program. At the 15th APEC conference, President Mr. Hu Jintao made a proposal to construct
an Asia Pacific Forestry Recovery and Sustainable Management Network aimed at
implementing a strategy to safeguard the global climate. Meanwhile President Hu has made a
commitment to raise Chinas forest coverage from the current 18.21% to 20% by 2010.
This proposal has been well received and highly appreciated by the international community.
It has been honored as the forest program to specifically aim at curbing global climate change.
33
To ensure forests play a full role in curbing climate change, the State Forestry Administration
has formed a working group and carbon sink management agency, and established a China
Green Carbon Fund in July 2007. Till now, seven provinces have launched an initial project
under the China Green Carbon Fund. The China Green Carbon Fund is a specialized fund
under the China Green Fund, which encourages Chinese enterprises, associations and
individuals to join in tree planting and forest management protection activities to better
support curbing of climate change.
Policy and institutional arrangements
Overview of forestry policy, legislation and implementation
In 2003, the Central Committee and State Council promulgated the Decision on Acceleration
of Forestrys Development. Since then, the political environment for forestry policy-making
and legislation, as well as implementation, has been much more receptive, as well as
becoming more scientific and democratic.
(1) Legalization has been accelerated: In accordance with Chinas constitution and
overarching legal framework, and based on the forestry administrations scope and
classification, China has preliminarily formed a forest legal system, with the Forestry Law of
the Peoples Republic of China as the main body for forest resource protection; the Law of the
Peoples Republic of China on the Protection of Wildlife and Regulations of the Peoples
Republic of China on Wildlife Protection are the main organs for wildlife protection; The
Regulations of the Peoples Republic of China on Nature Reserves and Regulations of the
Peoples Republic of China on Forest and Nature Reserves of Wildlife Protection target nature
reserve protection. Other important laws are the Law of the Peoples Republic of China on
Prevention and Control of Desertification for combating desertification; the Seed Law of the
Peoples Republic of China and Regulations of the Peoples Republic of China on the
Protection of New Varieties of Plants for forestry seedlings; and the Criminal Law of the
Peoples Republic of China and other criminal law amendments related to forest resource
violations and wildlife violations for protecting forest resource and wildlife.
(2) Policy-making power enhanced: The Chinese government has attached great importance
to forestry policy-making; although laws and regulations have played an increasingly
important role in forestry development, policies still have a major function in regulating
forestry development. In June 2003, the State Council promulgated a Decision on
Accelerating the Development of Forestry. This is the second important document (related to
forestry) issued by State Council since the economic reforms and liberalization. The
document makes a clear deployment of forestry production layout, points out the key fields
and phases of forestry reform and identifies policy measures for safeguarding forestry
development. In September 2007, the State Forestry Administration and the National
Development and Reform Committee, as well as seven other ministries, issued The Outline of
Forestry Industry Policies document. This is the first forestry industry policy outline issued in
China, and it points out the key developing areas of forestry and supporting policies for
34
forestry industry development in terms of finance and taxation.
(3) Forestry law enforcement and administrative supervision have been intensified: The
forestry administrative departments have adopted systems for forestry administrative
enforcement, assessment, and investigation of misjudged cases. In 2006, the State Forestry
Administration issued the Notice of State Forestry Administration on Implementing Forestry
Administrative Enforcement Responsibility System. On the basis of this, the State Forestry
Administration also drew up the State Forestry Administrations Work Program for defining
law enforcement responsibility legally. This document requires that forestry administration
officials should hold a Forestry Administrative Enforcement Certificate when they are
engaged in law enforcement activities. China will continue to improve the forestry
administrative license system, standardize forestry administrative permission, and a
Scientific and logical, legal enactment, well-coordinated, high efficiency and powerful
supervision administrative permission (work) mechanism should be gradually set up.
Policy change concerning forestry development: Since 1998, a tremendous change has taken
place in Chinas forestry development. Policy changes concerning forestry development are
manifested in the following new measures: Forestry development strategic changes;
considerable increases in government investments in forest establishment and rehabilitation;
development of a classified management system for forests; establishment of a Compensative
Funds System of Forest Ecological Benefits; conduct of the Reform of Collective Forest
Ownership System in some provinces or regions.
(1) The major strategic change in forestry development is that forest establishment and
rehabilitation should change its focus from timber production to maintaining and improving
forest ecological systems. The Decision on Accelerating Forestry Development made by the
State Council clearly outlined the intention to change the orientation of forestry from timber
production to ecological reconstruction. It made clear that forestry development should set
ecological reconstruction as the key strategic issue and sustainable development of forestry
should make ecological reconstruction the main priority.
(2) To adopt a classified forest management system. To ensure clear recognition of forests
multiple functions, each forest should be classified according to its main purpose. National
forests should be classified as either ecological forests or commercial forests. Different
management, operational and policy measures should be applied accordingly. The ecological
forests should be managed by government officials, with government investment being the
main source of funding; social funds in improving management should also be mobilized. The
commercial forests should be managed as commercial entities, with sales of forest products
providing the major source of funding, with the government giving support when needed. For
all forest resources which are classified as ecological forest, the government will provide
relevant compensation to existing users/investors in various forms.
(3) With the launching of the Six Major Forestry Programs, central government inputs to
35
forestry have increased. The programs involve 97% of national counties, cities, regions or
banners. Planned plantation will exceed 76 million ha, with total investment of more than 700
billion RMB. The six major forestry programs effective implementation will improve Chinas
ecological condition and safeguard the national ecology, promote agriculture and agricultural
economic development, and increase urban and rural employment and farmers incomes.
(4) A Compensative Funds System of Forest Ecological Benefits has been established. In
1998, the Forest Law explicitly stipulated that a Compensative Funds System of Forest
Ecological Benefits should be established and defined the legal status, scope and objectives of
the funds and compensation system. In 2004, the Ministry of Finance officially set up the
Compensative Funds System for Forest Ecological Benefits. By 2006, government capital
input to the system totaled 3 billion RMB, with an area of 40 million ha of forests being
covered by the program. In 2007, the Ministry of Finance and State Forestry Administration
released the Regulation of Central Committees Comparative Funds for Forest Ecology
Benefits. The governments fiscal input to total compensation reached 3.34 billion RMB, with
the compensated area of key public forests reaching 44.53 million ha.
(5) Reform of the Collective Forest Ownership System. Since 2003, Fujian Province and
Jiangxi Province have conducted collective forest ownership system reform. In 2006, the
State Forestry Administration announced that up to the end of the Tenth Five-Year Plan, forest
ownership reforms will be carried out to allocate clear property rights and ownership titles,
household will be issued contracts for feasible management, and the philosophy that
Mountains have owners; owners have rights; with rights come responsibilities; but
responsibilities also have benefits will be realized.
(6) Fully promote modern forestry construction. In 2007, the State Forestry Administration
launched a new strategy for constructing a modern forestry system, with a major focus on
forestry ecology, including development of industry and a culture focused on forest ecology.
Forests will provide raw materials, ecological enhancement, and culture products for national
economic and social development. Construction of a modern forestry system will have a
major and continuous influence on Chinas forestry development and ecology conservation.
Forest management systematic arrangement
According to current law and regulations, Chinas forest management system includes the
following aspects:
Forest, forest timber, and forest land registration and certification system
Auditing system enabling confiscation or acquisition of forest land
System for transferring use rights for forests, forest timber and forestland
Compulsory tree planting system. Planting trees and protecting forest is a legal
obligation for each citizen
Forest plant quarantine system
Forest pest and disease control
36
Forest fire prevention system

Forest cutting quota management
Forest timber cutting license system
Forest timber processing management
Forest timber transport certification
Value-added wood export administration
Forest germplasm resource protection
Key forest commercial seedling production certification
Forestry scientific research and education

(1) Forestry scientific research: Since the economic reforms, forestry science and
technology in China have made substantial progress. A preliminary complete system focusing
on forestry scientific research and development, technology extension and industrialization,
establishment of technical standards and quality control supervision and forestry scientific
management has been formed. There are more than 240 forestry research institutions with
10,000 professionals involved at, and above, the prefecture level.
Forestry scientific research has made many fruitful achievements in recent times. According
to (incomplete) statistics, more than 5000 key scientific results pertaining to forestry have
been recorded since the reforms. Of these, more than 250 have received national scientific
progress awards, national innovation awards and/or national natural science awards. A further
1 848 scientific progress awards have been made at the provincial level. Since the Ninth
Five-Year Plan, forestry science has entered a period of rapid growth, with more than 1100
key scientific achievements recorded, of which 72 have received national scientific awards
and 346 awards for scientific progress have been made at the ministerial level. These
achievements have also been made at the international leading level or international advanced
level, or have filled in a specific gap in Chinas forestry scientific technology.
At the same time, it can be noted that, viewed from the perspective of the magnitude of
demands on forestry development and ecological construction, Chinas forestry science and
technology reserve is inadequate, innovation ability is weak, and supporting capacity is
limited. Science resources have not yet been effectively allocated or fully utilized. Scientific
and technological personnel and the overall quality of science staff do not yet meet the new
tasks requirements. The state of forestry science and technology research still remains an
important restrictive factor for forestry development.
(2) Forestry education and training: At present, there are 6 forestry universities for higher
education, 15 providing training on national key disciplines, 36 providing provincial training
on key disciplines, 98 authorized to issue doctoral degrees in forestry (13 with Master degree
authorization), and 14 post-doctoral research stations. In addition, there is 1 forestry public
safety higher junior college and 12 higher junior forestry (ecology) vocational technical
colleges. Besides, 256 other universities for higher education have conducted forestry college
education or higher vocational education. Forestrys higher education scale has been
37
expanded (see Table 10), with middle forestry vocational schools especially enjoying rapid
growth (Table 11).
Table 10. Student numbers from 2001/2002 to 2005/2006 in common forestry
colleges for higher education and other higher education and research
institutions
Project
Total
2001
2002
2003
2004
2005
236283
35324
40057
47573
57586
55743
14550
1391
1851
2877
3823
4608
2432
293
344
496
640
659
12118
1098
1507
2381
3183
3949
221733
33933
38206
44696
53763
51135
Bachelor students
144316
23712
25994
29229
32359
32842
College and higher
77597
10221
12212
15467
21404
18293
110100
10100
12300
20553
28408
38739
5359
531
714
1000
1329
1785
965
111
170
205
215
264
4394
420
544
795
1114
1521
104741
9569
11586
19553
27079
36954
Bachelor students
71026
7218
8305
13436
18300
23767
College and higher
33695
2351
3281
6097
8779
13187
Master, college and junior

college enrollment student
Post graduate students
Doctoral students
Master students
College and junior college
students
vocational students
Master, college and junior
college graduate student
Post graduate students
Doctoral students
Master students
College and junior college
students
vocational students
Table 11. 2001/2002 to 2005/2006 middle grade forestry vocational school

students
Item
Enrollment
Forestry (garden) school
Total
2001
2002
2003
2004
2005
131727
21027
22163
29720
28492
30325
79925
16163
17324
15774
12386
18278
148015
27790
26989
30657
33329
29250
91401
20364
20892
18607
14773
16765
enrollment
Graduates
Forestry (garden) school
graduates
The State Forestry Administration has established forestry training bases in more than 20
provinces or regions. The Beijing State Academy of Forestry Administration (the former
Beijing Forestry Management Staff College) is a professional training institution under the
State Forestry Administration. From 2001 to 2005, the academy trained 14.33 million persons.
The State Forestry Administration has also organized Sino-Germany Technology Cooperation
training and Sino-Japan forestry ecology training programs. The State Forestry Administration
38
has also established cooperative training relationships with South Korea, Germany,
Switzerland, Canada, and other countries.
Major issues and challenges for forestry
Although Chinas forestry construction has made many notable achievements, it is worth
noting that Chinas forestry development is not yet well matched to overall requirements for
national economic and social development. There are still some prominent problems or issues.
(1) Ecological reconstruction is arduous; the total volume of forest resources is
inadequate and unevenly distributed: Chinas national soil erosion area is 3.56 million km2,
37.1% of total national territory. The soil desertification area is 1.74 million km2, 18.1% of
total national territory. Chinas forest coverage is merely 61.52% of the worlds average level,
ranking 130 in the world.
(2) Resource management pressure is high; forest management is extensive: According to
the Sixth National Forest Resource Inventory, during the inventory interval, 10.11 million ha
of forest land had been converted to other uses or become non-forest land by acquisition.
State-owned forest land converted into non-forest land totaled 3.7 million ha, with an average
annual area of 739.4 000 ha. Extensive forest management with low efficiency overall means
that overall forest quality is low, and this is borne out in the national forest average stock per
ha, which is only 84.75 m3 (with planted forest stock at 46.65 m3).
(3) Forest product supply shortfalls are acute; the forestry industry structure is
irrational: Due to a rapid increase in forest product demand and forest resource inadequacy,
compounded by the bans on felling in natural forests and consequent reductions in timber
production, Chinas timber supply shortfall has become increasingly acute. Timber import
dependency has become even heavier. In 2006, the quantity of imported logs and sawn wood,
plywood, fiberboard, paper pulp and paper products was equal to 120 million m3 roundwood
equivalent, of which 32.15 million m3 was directly imported logs. Additionally, the forest
industry, especially the forest product processing structure is not rational. The secondary and
tertiary industries are not fully developed.
(4) Institutional restrictions on forest development have not yet been eliminated: At
present, Chinas forestry is undergoing an overall transformation, but a holistic macro system
and a system of supporting services suited to a market economy has not yet been built up.
Progress in reforming systems governing key national forest areas, state-owned forest
industry enterprises, and state-owned farm land is slow; a modern enterprise system has not
yet been formed. Forest ownership reform policies still need to be improved and policies for
circulation and transfer of forestland and forests, deforestation as well as forestry cooperation
organization, etc. also still need to be enhanced urgently.
(5) Forestry infrastructure construction is still weak: In recent years, Chinas investment
in forestry infrastructure has been significant. However, capacities relating to forest seeding,
39
improved collection and cultivation of forest seedlings, as well as processing and storage,
forestry information and e-policy, forest fire control capacity, and pest and disease testing and
control, as well as other basic development factors are weak.
(6) Support for forestry science and innovation should be further strengthened: Forestry
scientific innovation, R&D and technology transfer are poor; forestry engineering and
construction and forestry productions scientific value should be further promoted. The total
number of forestry personnel is inadequate and the overall science structure is not rational; the
overall quality is not high. Forestry training and education capacities lag far behind the actual
demand.
40
3. FACTORS INFLUENCING FORESTRY DEVELOPMENT

Principal characteristics of social development
Demographic change
Demographic changes will definitely change the demand of socio-economic development and
for goods and ecological services that forests can provide. In the long run, demographic
changes, mainly in the number of people and the population structure, will be an important
factor influencing forestry development.
(1) Demographic number: With the increasing improvement of integrated national power
and the shift of the strategic focus for forestry development, China has quickened the pace of
forestry development, while effectively controlling demographic growth. Consequently, forest
resources have achieved growth both in area and in stocking levels, and the ecological
services provided by forests are gradually being improved and enhanced. By the end of 2005,
Chinas population had reached 1.31 billion people (see Table 12).
Table 12. Change in population and forest resources (ha, m3)
Time
Forest land area
Per capita forest

land area
Forest stock
Per capita forest

stock
2005
174909200
0.134
124558458
9.52
Mid-1990s
124558458
0.128
112665914
9.048
112665914
0.114
101367532
8.622
101367532
0.115
91410764
8.418
91410764
0.120
90279533
9.100
90279533
0.130
86557900
9.300
The beginning of
the 1990s
The middle of
the 1980s
The beginning of
the 1980s
The middle of
the 1970s
(2) Demographic structure: By the end of 2005, the city and township population in China
had reached 562.12 million, and the rural population stood at 745.44 million, accounting for
43% and 57% of the total, respectively. The distribution of urban and rural population will
exert an impact on societys demands for forest goods and ecological services. However, as
far as forestry development in China is concerned, the impact has been limited. The impacts
of an accelerating urbanization process in China on forestry development mainly shows in the
fact that many young and middle-aged laborers in rural areas choose to work in urban areas,
thus having a negative impact on the intensity and level of forest management and care in
collective forest regions.
Forestry sector evolution
41
The fifty-year development of the forestry sector has witnessed three distinct stages: (i)
development, frustration, damage; (ii) renewing of development, and (iii) great development.
In the three development stages, the development objectives, missions and outcomes have
been different.
In the more-than 30 years before the reform and liberalization in 1978, forestry
development in China was centered on timber production, and forest resources were
severely damaged. This resulted in deterioration of the overall ecological environment,
which had become very fragile. But forestry made an irreplaceable and important
contribution to national economic development, especially in the early years of New
China, when forests supplied a wealth of timber and forest products for the recovery
and reconstruction of the national economy
After the United Nations Environment and Development Conference (UNCED)
which was held in 1992, China initiated a forestry development process for the 21st
century, in which the concept of sustainable forestry development was recognized and
(in principle) accepted. Thereafter, stress has been increasingly placed on ecological
and environmental development, and the State has initiated a full range of ecological
and environmental projects, the implementation of which will greatly promote
forestry development, improve the ecological environment, and facilitate the healthy
development of the national economy
In the 21st century, the Central Committee of the CPC and the State Council ratified
the Decision on Accelerating Forestry Development, thus forestry development in
China entered a new historical stage with a focus on ecological development, rather
than timber production. The Decision recognizes the strategic position of forestry in
the countrys overall socio-economic development, establishes a forestry
development strategy with a focus on ecological development, identifies the
orientation of forestry reform and relevant policies and measures, and accelerates the
innovations of the system, mechanisms and policies in terms of forestry development.
In order to solve serious ecological and environmental problems, China has made a
large investment in the implementation of the Six Forestry Programs. These programs
effectively enhance and improve the deteriorated ecological environment, and
gradually establish a green system that is focused on forest vegetation to effectively
maintain eco-security, and make positive contributions to the achievement of an
eco-good ecological civilization in China.
Increasing of public ecological awareness and the change of the consumption concept
The burgeoning of a nationwide voluntary tree-planting campaign has effectively promoted
the rapid development of afforestation and greening, and social forestry. Consequently, the
whole of society has devoted time towards developing forestry and greening the environment,
in the expectation of reconstructing good ecology and building a beautiful landscape, which
will characterize and highlight Chinas forestry development. Since the first National
Tree-Planting Festival in 1982, on the 12th of May every year, every person from the
leaders of the Party and the country to the general public takes part with great enthusiasm
42
in tree-planting activities, which are obligatory, statutory and contribute to public welfare. The
unfolding of volunteer tree-planting activities has more extensively evoked public awareness
of ecology, the environment, greening and responsibilities to value and protect forests. The
extensive participation of the public has promoted the development of social forestry, and
exerted a positive and far-reaching impact on forestry development in the new era.
China is undergoing a social transition, and societys consumption patterns are shifting from
subsistence consumption to a combination of subsistence, development, and luxury
consumption. In this context, people have an increasing demand for green consumption,
which is becoming a new economic growth engine for forestry development in the new era.
Green consumption has become a new pursuit and a new fashion sought by people, especially
by urban residents in recent years. Forests, as the lungs of the earth, have been greatly
recognized for such functions as water conservation, climate regulation, soil and water
protection, arable land protection, maintenance of biodiversity, environmental purification, etc.
The rise of ecological consumption and green consumption has also promoted Chinas
forestry towards ecological development.
Change in the energy use structure of rural areas
The energy structure of rural areas in China lags behind developments in urban areas. At
present, the energy used in rural life is still concentrated in burning of straw, coal and fuel
wood. This low-grade energy consumption will inevitably conflict with emerging agricultural
modernization, the burgeoning development of rural industry and the improvement of
farmers livelihoods. Among the energy consumed in rural areas, straw stalks contribute 31%
of the total and fuel wood 25%, while in the process of traditional cooking with stoves, the
energy utilization rate of straw stalks and fuel wood is only 10%-15%. The situation has
evolved to one of more people and less forests; hence about 80 million farming households
across the nation are short of fuel wood, thus causing excessive logging of forests and trees
and rampant digging of grass roots, which in turn leads to damage to the ecological
environment. This shortage can be relieved by changing the energy utilization structure in
rural life, while the energy utilization rate in rural life can be improved by changing the
traditional utilization approaches. Now China is initiating construction of a New
Countryside, during which the changing of the energy structure in rural life is an important
component.
Political and institutional environment
Implementation of western region development
The western region of China is both rich in natural resources and fragile in its ecological
environment. The region is characterized by low forest coverage, serious losses of soil and
water, a large area of desertification, and severe hazards to agriculture. In January 2001, the
Central Committee of the CPC and the State Council initiated an important strategy to ensure
western development in the new century. Strengthening ecological and environmental
43
development in the west is a prerequisite to economic development and constitutes a

fundamental basis to implement the western development strategy. Hence environmental
development is the priority task during implementation. Along with the overall upsurge of
western development, forestry in the western region has also become a strategic focus of
national forestry development. It is recognized that forest resource distribution patterns in the
west should be gradually improved in a holistic way, in order to increase national forest cover.
Revitalization of the old industrial bases in northeast China
The northeastern region is the forest region in which the forest area is the largest and forest
resources are the richest in China. The forestry industry in the key state-owned forest regions
located in the northeastern region and Inner Mongolia is the most important component of old
industrial bases located in Northeast China. Due to years of excessive logging and a focus
on harvesting instead of tending forestry in the northeast is faced with a severe situation,
which is mainly characterized by resource crises, ecological degradation and economic
dilemmas. The revitalization of the old industrial bases in Northeast China is a strategic
decision made by the Central Committee of the CPC, in keeping with principles of scientific
development, with a focus on the comprehensive construction of a prosperous society, in
keeping with strategies of opening up the eastern coastal area and western development. At
present, forestry development in the northeastern region has a long way to go, but it will
eventually provide an ecological barrier to assisting in the revitalization of old industrial bases
and the integrated, coordinated and sustainable development of the northeastern region as
well as making a greater contribution to the construction of a prosperous society by
revitalizing the forest economy.
Change in the public financial system
Sustainable forestry development is directly related to the sustainable development of
economy and society. Thus forestry is an important pillar of development, warranting support
by public finance. For example, under the six key forestry programs, the State has greatly
increased its investment in forestry, fully demonstrating the strength of support from public
finances to forestry. In terms of public finance development trends, forestry will be integrated
into the system for public financial support for the long term, and which will possibly become
a standardization system.
Enforcement of property law
The Property Law of the Peoples Republic of China came into force on 1 October 2007. The
Law defines forest resource protection by providing greater protection of property rights. The
Law will definitely play a strong role in ensuring, regulating and promoting ongoing reform
of the forest ownership system and the construction of modern forestry in China.
44
Firm stand in combating illegal logging

The Chinese government takes a firm stand in favor of ecological protection and against
illegal logging and its related trade, and has made great efforts in these areas. The Chinese
government has made an international commitment to the common adherence and
implementation of 7 principles as a response to illegal timber logging and related trade:
adherence to the principle of national sovereignty, adherence to the principle of government
leadership, adherence to the principle of strengthening sustainable forest development,
adherence to the principle of international trade protection, adherence to the principle of
global cooperation, adherence to the principle of scientific definition, assessment and
reporting, and adherence to the principle of community participation and common action. The
Chinese Government has signed Memoranda of Understanding against illegal timber logging
and related trade with neighboring countries such as Indonesia, the Russian Federation,
Myanmar, and others. Meanwhile, China has developed a strict monitoring procedure for the
import and export of timber. The SFA and other relevant departments place high priority on
monitoring of forest products and combating illegal activities in accordance with relevant
laws in China, thereby playing a very important role in ensuring the well-balanced
development of the forest product trade.
Change in economy
The impact of economic growth on forestry
In the past 50 years, a profound change has taken place in the quality and quantity of forests
in China. The proportion of forestry production value in the national economy has
continuously decreased, indicating that national economic growth has decreased its
dependence on forests (Figure 1). At the same time, the growth of integrated national power
provides an economic basis for the protection and development of forest resources. After the
economic reforms and opening-up of China to the world, and especially in the past several
years with the improvement of integrated national power the country has stressed the
importance of forestry development, and increased the investment in the six key forestry
programs (see Table 13). In 2001-2005 (during the Tenth-Five-Year Plan), the total investment
was 148.2 billion RMB, 5.27 times more than the total investment under the Ninth Five-Year
plan (which was 28.12 billion RMB). State investment reached 127.8 billion RMB,
accounting for 86.24% of total investment. This fully indicates the great support of the nation
to forestry ecological development.
45
G D P 1 9 5 3 - 2 0 0 5
9
8
7
6
5
4
3
2
19
53
19
58
19
65
19
75
19
81
19
83
19
85
19
87
19
89
19
91
19
93
19
95
19
97
19
99
20
01
20
03
20
05
1
0
Figure 1. Timber consumption volume per 100 million RMB GDP in 1953-2005 in
China
Table 13. Investment in Six Key Forestry Programs (2001-2005) Unit: 10 000
RMB
Projects
Natural forest protection
program
The conversion of farmland from
forest program
Beijing-Tianjin rim combating
desertification programs
2001
2002
2003
2004
2005
949319
933712
679020
681985
620148
314547
1106096
2085573
2142905
2404111
183275
123238
258781
267666
332625
303066
316711
232083
352661
192556
20917
39261
52406
44465
51452
24675
38986
31297
20560
15410
1795799
2558004
3339160
3510242
3616302
The three-north shelterbelt and

Yangtze branches development
program
Wildlife protection and nature
reserve construction program
The program of establishment of
fast-growing and high-yielding
timber plantation
Total
Rural development trend and its impact on forestry development

In China, mountainous areas account for 69% of the total land area, and the population in
these areas is 56% of the total, including 30 million poor people. Forestry has unique
advantages, which means that development of forestry in mountainous areas can make a great
contribution to rural economic development and poverty reduction. In some senses, forestry
projects themselves are the largest poverty reduction projects implemented by the nation;
good forestry projects can help improve ecological and economic development and generate
income for farmers. The Conversion of Farmland from Forests program, especially, is the
46
largest poverty reduction project involving millions of households, among which farmers can
benefit the most.
The rapid, continuous and healthy development of Chinas economy has created increasing
demand for various forest products, and forestry plays an increasingly important role in
adjusting agricultural structures, developing a flourishing rural economy, and generating
incomes for farmers. In the construction of the socialist New Countryside, fast-growing and
high-yielding forests, commercial forest and the bamboo industry as well as ecological and
green industries such as forest food industry, forest tourism, forest medicine industry, etc.
have become important new income-generating channels for farmers and the new growth
engine for rural economy. Consequently, forests play an important role in solving the three
agriculture problems (described later).
The impact of the mixture of agriculture and forestry on forestry development
Historically, there have been many conflicts between forestry development and agricultural
development in areas including both agricultural land and forestry land. In these areas, the
forest operational region overlaps with agricultural administrative jurisdiction. In these cases,
the forest resource managerial right and administrative right are not consistent, the
relationship is not streamlined, and therefore management is confused. This results in
sub-optimal outcomes such as excessive logging, deforestation for reclamation, and
overgrazing, all of which have greatly jeopardized forest resource protection and generated
many negative effects on forestry development.
The Conversion of Farmland from Forest program has played a positive role in mitigating
various conflicts between agriculture and forestry in these areas. The program is most closely
associated with providing benefits to farmers, among the six key forestry programs. A total of
32 million farming households and 120 million farmers are involved in the program. By the
end of 2006, the government had invested over 130 billion RMB in the program. Once the
agricultural land is converted into forest land, farmers will devote more effort to forestry,
sideline occupations and multiple-use management, as well as developing new industries,
which will in turn promote rural economic development.
The impact of future energy demand on forestry
(1) Current status and trends of forests as sources of bio-energy: China is experiencing
rapid economic development, but is very short of domestic energy resources. According to a
survey by the Social Science Academy, Chinas reserves of coal, crude oil and natural gas,
calculated based on proven reserves and mining capacities, are sufficient to meet demands for
80 years, 15 years and 30 years, respectively. The import dependency on crude oil has reached
47% of the national energy budget, which poses a degree of risk to national energy security.
The main form of forest bio-energy use in China is fuelwood. At present, the total area of
fuelwood forest across the nation is 3.03 million ha, with a growing stock of 56 million m3.
Fuelwood forest is an important energy source in large remote mountainous areas and forest
47
regions. Once China attaches greater importance to the development of renewable energy,
forest bio-energy development will inevitably enter a new stage and become an important
component of national renewable energy development.
(2)The new trend in fuel production and its impact on forestry: Under the Eleventh
Five-Year plan, the rural economy will be targeted for faster development by developing
agricultural and forestry biomass power generation, planting energy crops and energy plants,
and developing a new rural energy industry. Efficient and clean burning fuel can be provided
to rural people to improve living conditions by developing marsh gas, biomass solid fuels, and
biomass gasification. A new channel for development will be opened by encouraging
production of energy substitutes to crude oil, such as biological fuel ethanol and biological
diesel oil, to offset shortages of oil resources. Industrialized development of bio-energy
technology can be achieved to effectively increase energy supplies and promote sustainable
energy development by developing bio-energy resources on a large scale.
Globalization and regionalization
With the advancement of globalization and regionalization, forestry in China has also
witnessed an accelerating development trend, and various fields of forestry have made
increasingly closer communications with international counterparts. This has had important
impacts on socio-economic development and forestry development in China. When China
joined international trade and economic organizations, such as the World Trade Organization
(WTO) and Asia-Pacific Economic Cooperation (APEC), challenges such as the evident
shortage of effective supplies of timber products produced in China became prominent.
Consequently, China reduced the import duties for timber and timber products as well as
non-tariff barriers. By 2005 the import duty on furniture was reduced to zero and the average
import duty rate for paper and paper products was reduced from 7.5% in 2004 to 4.6% (zero
duty continues to be applied to raw material products such as logs, sawn timber, pulp, etc).
China has actively participated in international forestry cooperation arrangements such as the
Montreal Process, FLEG, UNFF, etc., and also in regional forestry cooperation such as the
European Forestry Ministerial Conference, ASEAN Forestry Ministerial Conference,
Asia-Pacific Forestry Commission, Asian Forest Partnership, and others. Intergovernmental
cooperation arrangements for which the SFA is responsible have increased to 10, and sectoral
cooperation arrangements presently stand at 37. Seventeen intergovernmental and
cross-sectoral agreements have been signed, which has created a good international
environment for Chinas forestry development.
Technological advancement
Forest technologies used in China have made good progress towards full modernization, with
prominent achievements in the fields of scientific research and development, technology
extension and industrialization, establishing technology standards and quality monitoring, and
forest technology management systems. Rapid development has been accomplished with
48
regard to supporting infrastructure and enabling conditions, such as key forest laboratories,
Terrestrial Ecological System Observation and Research Stations, germplasm resource pools,
project centers, forest scientific data centers, technological park zones, technique extension
stations, quality testing centers, new variety testing bases, forestry technology and
information networks, and a new platform for forestry technology innovation has completed
an initial phase of establishment. During the Tenth Five-Year Plan (2000-2005), more than
1 100 key technological achievements have been made in the forestry sector, more than 500
standards have been developed, and 630 technological achievements and applicable
techniques have been used for extension and application. The National Forestry Technology
Conference held in 2006, developed a strategic plan describing the objectives, missions and
priority fields for medium- and long-term forestry technological development.
It needs to be pointed out, however, that the present rate of forestry technology innovation,
and the overall level, cannot meet the demand for forestry development, and there exists a
great gap compared with the advanced forestry countries in the world. Therefore, it is
necessary to consider the improvement of independent innovations as the priority task for
forestry technological development in the new era. China needs to change the passive
situation of forestry science and technology as soon as possible in which partial advancement
and general backwardness coexist and forestry research is based on tracking studies, while
innovation research remains inefficient. China should make an effort to narrow the gap with
advanced forestry countries and improve the supporting capacity of technology for forestry
development, and thus promote both rapid and well-balanced development of forestry.
Environment problems and environment policies
Aiming to solve the environmental problems that China is presently encountering (issues such
as damage to forest resources, desertification, water resource crisis, air pollution, etc) the
Chinese Government has made environmental protection a basic national policy, and has
adopted a range of measures to accelerate the construction of a resource-conserving and
environmentally friendly society. Important measures include: optimizing industry structures,
developing a recycling economy, and promoting clean production so that environmental
pollution can be controlled at its source. Secondly, China will implement major ecological
development and environmental renovation projects to effectively curb the deterioration of
the natural environment. Thirdly, China plans to promote urban and rural environmental
development, strengthen integrated environmental control and management in urban areas,
and improve the rural living environment and the appearance of villages. Fourthly, China will
accelerate environmental technology innovation, enforce special pollution treatments, and
consolidate the control of pollutant discharges with a focus on the prevention of water, air and
soil pollution.
The environmental policy system in China mainly includes three horizontal fields, i.e. (i)
environmental pollution prevention and treatment, (ii) rural ecological and biodiversity
protection, and (iii) reasonable natural resource exploitation and utilization. The three fields
are closely related to forestry development, especially to rural ecological and biodiversity
49
protection and reasonable natural resource exploitation and utilization. After several decades
effort, China has established a relatively complete environmental policy framework, which
has played an important role in environmental protection and ecological development.
Currently, China has issued 6 laws with regard to environmental protection: e.g. the
Environment Protection Law; 9 laws with regard to resources, e.g. the Forest Law; 28 statutes
and more than 90 regulations with regard to environmental protection; and prepared 375
national standards and more than 900 local regulation with regard to environment protection;
together they form the environmental law and policy system in China.
Major factors influencing forestry development in the next 20 years
National economic development
In recent years, the national economy in China has maintained a relatively high growth rate.
With rapid growth, the demands that socio-economic development have created for forestry
have experienced fundamental change. Firstly, some important changes have taken place in
the social demands for forestry. Control, protection, and improvement of the ecological
environment have gradually replaced timber production as the primary contribution of forests
to national economic and social development. Secondly, the predominant economic growth
pattern, which operated at the cost of environment and resources, has changed. This will cause
essential changes in national economic demands on forestry. Thirdly, the advancement of
scientific technology and the updating of ideas will improve public understanding of the roles
of forestry.
The 17th Peoples Congress Report in 2007 plans that, based on structural optimization,
benefits improvement, consumption reduction and environment protection, by 2020, per
capita GDP will have quadrupled compared with the 2000 level. The report lists ecological
development as one of the main objectives of comprehensive construction of a prosperous
society, and also points out the development direction for forestry in the new century.
Urbanization process
Urbanization is an important process as well as a symbol of modernization. While it has been
brought about through great socio-economic progress, it also has caused severe social and
environmental problems in cities, not only influencing the physical and mental health of urban
citizens, but also threatening the survival and sustainable development of cities.
As an important component of urban ecological systems urban forests have a major
environmental purification function, and play roles that other urban infrastructure cannot
replace in terms of human health protection, regulating ecological balance, improving
environmental quality, urban landscape aesthetics, etc. The development of urban forests is an
important field of Chinas ecological development, as well as the main part of urban
ecological development. Urban forests provide goods, culture and ecology for urban citizens,
and bring into play economic, social and ecological benefits in the sustainable development of
50
urban economic society. Urban forests are the key and the link in the fulfillment of
harmonious relationships between humans and nature and between individuals and society.
Therefore, it is a necessary requirement of urbanization processes to accelerate forestry
development and urban forest development.
Three agriculture problems
The three-agriculture problems refer to (i) agriculture, (ii) the countryside, and (iii) farmers.
As a large agricultural country, the three-agriculture problem relate to the quality of peoples
livelihoods and economic development, as well as social stability and national wealth.
Forestry plays a significant role in the settlement of the three-agriculture problems. This is
because forests are not only a renewable resource, but also have multiple functions providing
ecological, economic and social benefits. Forestry does not develop in isolation from
agriculture, so the three-agriculture problems cannot be solved without including forestry in
the equation.
Energy security
In the context of energy shortages, seeking substitute energy sources and developing new
energy and renewable clean energy such as nuclear energy, water power, wind energy,
geothermal heat, solar energy, bio-energy, etc. are the focus of attention across the world.
In September 2007, the State Development and Reform Commission officially issued
Medium- and Long-term Development Planning for Renewable Energy, which plans that by
2010, renewable energy consumption such as solar energy, wind energy, geothermal energy,
ocean energy, bio-energy, etc. will provide about 10% of the countrys total energy
consumption, and by 2020 about 15% of energy consumption. It also proposes that annual
production capacity of fuel ethanol will have reached 10 million tonnes and production of
biological diesel oil will be 2 million tonnes by 2020. The State Development and Reform
Commission emphasizes that the bio-energy represented by non-grain fuel ethanol and
biological diesel oil, will be pivotal to future development.
China has prepared a strategy of vigorously developing a non-grain-based bio-energy industry
on the basis of full recognition of the need to maintain grain supply security, encouraging the
planting of energy crops, and the development of a bio-energy processing industry. This
provides a rare opportunity for forest bio-energy development. Moreover, forestry will play a
major role in mitigating any energy crisis in China, and in the countrys response to climate
change. The SFA recognizes forest bio-energy development as an important component of
modern forestry development, and lists the large-scale cultivation of energy forest as part of
the Eleventh Five-Year Forestry Development Plan. Two important documents, the National
Energy Forest Development Planning and Eleventh Five-year Development Program for
Biological Diesel Oil Feedstock Forest Base have been completed, with the initial concept
that, by 2020, 13.33 million ha of energy forest will have been cultivated. Together with
existing forest resources, this will provide 6 million tonnes of biological diesel oil feedstock
and 400 million tonnes of woody fuel each year. It can be predicted that the development of
51
renewable energy, including forest bioenergy, will markedly alter the traditional energy
pattern in China.
Economic globalization
The development of economic globalization and trade liberalization continue to drive towards
a more open forestry sector in China. Increasing demands for forest products in national and
international markets mean that trade, including both imports and exports of forest products in
China will continue to increase. The forestry industry will encounter more opportunities, as
well as severe challenges in international competition, and the traditional forestry production
pattern with extensive, small-scale, decentralized management will gradually lose vitality in
China. Therefore, in the long run, the forestry sector in China will play a more important role
in the international market, and the forestry industry will also grow amongst fierce
competition. With the rapid development of international free investment and trade, in the
process of import and export of resource products, exchange and transfer between resources
and environment will exert considerable negative impact on the safe supply of Chinese
resources.
FLEG issues
Forest Law Enforcement and Governance (FLEG) initiatives aim to help solve four problems:
forest degradation, rural poverty, climate change, and illegal trade, which are closely
associated with forestry development. As early as 1992, at UNCED, forests and sustainable
forest development were priority issues in international environmental policy and the political
process. For 15 years, the United Nations has been devoted to promoting sustainable forest
management, while the international community has made a joint effort to promote FLEG.
In September, 2007, the SFA and the European Union co-hosted the Sino-EU Forest Law
Enforcement and Governance Conference in Beijing. The conference established a platform
for communication among stakeholders including timber producing countries, consumer
countries, private sector and state-owned enterprises, environmental protection organizations,
etc. This was an important step in promoting sustainable forest resource management and
integrated utilization, and towards curbing and combating illegal timber logging and
promoting globally sustainable forest management.
Chinas FLEG has a very important position in the world. In terms of tree planting and
afforestation, China has established the greatest area of forest of any country in the world in
the past five years; moreover prominent achievements with regard to poverty reduction have
also been made. In terms of prevention of global climate change, the role of China cannot be
neglected. In the current situation, with globalization and regionalization being increasingly
important, Chinas forestry sector will play an increasingly important role in the international
trade chain for forestry.
52
4. POSSIBLE SOCIAL, ECONOMIC, POLITICAL AND INSTITUTIONAL

DEVELOPMENT SCHEMES FOR THE NEXT 20 YEARS IN CHINA
Identification of the theoretic basis of the scheme
Identification of the economic basis of the scheme
Firstly, micro-economic analysis will provide theoretical support for the prediction of the
future development of Chinese enterprises. Identifying the future development and fluctuation
of productive enterprises based on the analyses of such indicators as supply and demand for
products and services, prices, costs, benefits, etc., will have important impacts on national
economic development trends and long-term forest industry balance. Secondly,
macro-economic analysis is important for the prediction of overall economic development
trends in China. This combines indicators such as investment, interest rates, taxation, inflation
rates, import volumes, export volumes, etc. together in economic development models with
overall demand and overall supply as the main thread. Other economic theories such as
institutional economics, agricultural economics, and resources and environmental economics
also analyze factors that impact on overall economic development trends, in some respect.
Identification of the ecological basis of the scheme
The ecological environment is very important to economic and social development.
Understanding ecological and environmental development trends will contribute to the
analysis of overall future development trends in China. Monitoring and prediction in terms
of plant population shift, biotic population change, water pollution, land degradation, climate
warming, etc. are of fundamental importance in ecological and environmental analysis. The
importance of ecological theory is evident in the fact that it can be used to analyze peoples
recognition of ecological values in economic development, and also provides a full range of
indicators that help to make an integrated assessment of ecological benefits, which can help
ensure the ecological environment is properly accounted for within the sphere of sustainable
development.
Identification of the policy analysis basis of the scheme
The theory of political systems and structures can be used to analyze trends relating to
economic and ownership structures in future society. Democratic system theory can be used to
analyze the positions of future interest groups in China such as enterprises, families,
government, etc. in the entire society. Political theory provides an important basis to analyze
the economy, society, ecological environment, policies, etc.
Identification of the statistical basis of the scheme
Statistics provide important tools in quantitative analysis, and inevitably play a fundamental
role in prediction; the statistical analysis of economic and ecological indicators is an
53
important method to identify the intrinsic drivers behind data. In practice, various indicators
of economic, social and ecological development can be quantitatively described and
statistically analyzed. Statistical analysis is often used in fields in which many realistic data
are available, problems are relatively complicated, and the accuracy of data is relatively high.
Identification of the realistic basis of the scheme
Economic situation
Chinas economy increased outputs and commensurate benefits in the period of the Tenth
Five-Year plan, with financial incomes achieving prominent increases year-after-year, while
prices have remained relatively stable. The national GDP in 2006 was 20 940.7 billion RMB;
among which, primary industries contributed 2 470 billion RMB, secondary industries
contributed 10 200.4 billion RMB, and tertiary industries accounted for 8 270.3 billion RMB.
Primary, secondary and tertiary industries respectively accounted for 11.8%, 48.7% and
39.5%, of GDP. At the end of 2006, the number of employed persons, nationally, had reached
764 million, state foreign exchange reserves stood at US$1066.3 billion, and the national tax
income in the entire year was 3 763.6 billion RMB (excluding duty, farmland occupation tax
and deed tax). Figure 2 shows the GDP and growth rate between 2002 and 2006.
Figure 2. GDP and its growth rate in 2002-2006

Natural resources
(1) Land resources: The land area in China is 9.6 million km2 and the territorial sea area is
47.3 million km2. The arable land area is 123.39 million ha, forest land 233.97 million ha,
grassland 263.11 million ha, other agricultural land 25.51 million ha, settlement and
independent industrial and mining land 25.35 million ha, land for transportation 2.15 million
ha, and land for irrigation facilities 3.57 million ha. The remaining land is classified as unused
land.
54

(2) Water resources: Per capita runoff in China is 2,200 m3, accounting for 24.7% of the
world per capita runoff. The distribution of water resources is characterized by relatively more
water in the south, and relatively less in the north, while the distribution of arable land is
lower in the south, with more in the north. The water energy resource reserve is calculated at
680 million kWh, ranking first in the world.
(3) Biological resources: There are 300 families, 2,980 genera and 24,600 species of seed
plants in China, among which there are 2,946 genera of angiosperms (accounting for 23.6%
of the world total of angiosperms). There are 2,070 terricolous vertebrates in the country,
accounting for 9.8% of the worlds terricolous vertebrates, among which there are more than
1,179 birds, 400 animals and 184 amphibian species, accounting for 13.5%, 11.3% and 7.3%
of their world counterparts, respectively.
(4) Mining resources: Mining resources are rich, with 171 kinds of minerals present. A
reserve of 157 kinds of minerals has been explored.
Demographic situation
China is a developing country with the largest population in the world. The basic national
situation in this development stage of China is characterized by a large population, relative
shortages of resources, and a relatively weak environmental carrying capacity, which will take
time to improve.
(1) Demographic numbers: At the end of 2007, the total population in China was 1.32
billion, with an annual natural growth rate of 0.52%. At present and in future decades, the
population in China will grow at the speed of 8-10 million persons per year.
(2) Population and quality of life: The average life expectancy of Chinese inhabitants has
increased from 35 years at the beginning of New China, to 73 years in 2005. The Chinese
Government has promoted the development of education, and popularized nine-year
compulsory education, which has improved the populations quality of life in terms of science
and culture.
(3) Demographic structure: The population in China is characterized by a high rapidly
ageing proportion that is generally ageing before accumulating sufficient wealth to live
comfortably. At the end of 2007, the population above 60 years old accounted for 11.6% of
the total population. From the perspective of gender, the ratio of male to female in the total
population is approximately 106 to 100, and the ratio at birth is 120 males to 100 females.
(4) Demographic distribution: From the perspective of the demographic distribution in
urban and rural areas, by the end of 2007, the population living in cities and township had
reached 593.79 million, accounting for 44.9% of the total population, while the number of
people living in rural areas was 727.5 million, accounting for 55.1% of the population.
55
Technological situation
In order to fulfil the strategy for revitalizing the nation through science and education, and to
improve the scientific and technological innovation capacity of China, the state fiscal budget
for spending on science and technology has been increased year after year. The number of
scientific and technologically qualified people continues to grow with the structure moving
towards optimal levels. By 2004, the number of persons devoted to scientific and
technological activities had reached 3.48 million, among which scientists and engineers had
reached 2.25 million, accounting for 64.7% of the total. Scientific and technological
achievements have attracted the attention of the world, and the number of patent applications
has increased rapidly. During the period of the Tenth Five-Year Plan, high-technology
industries in China maintained a rapid rate of increase, which has upgraded the
competitiveness of Chinese high-technology products in world markets.
Policies
The key government policies include:
Improve independent innovation capacity and construct an innovation-oriented

country. This is the core of the national development strategy and the key to
improving integrated national economic power
Accelerate economic development, and promote the optimization and updating of
industrial structures. This is an urgent and important strategic mission related to the
overall national economy
Incorporate specific urban development and rural development initiatives into
national development, and promote the construction of the socialist New Countryside
Strengthen energy sources and supplies, resource conservation, and ecological and
environmental protection, and reinforce sustainable development capacity
Promote coordinated development among regions and optimize land development
patterns
Improve basic economic institutions and complete development of a modern
market-based economic system
Implement additional financial and taxation system reforms and improve the
macroeconomic regulation system
Widen the extent and depth of Chinas opening-up to the world, and improve the
level of open economy
Identification of the prediction scheme

Economic aspects
GDP and per capita GDP

Economic growth rate
The proportion of the primary, secondary and tertiary industries in GDP
56
Per capita income of urban residents, per capita net income of rural households and
consumer price index (CPI)
Engel coefficient (the proportion of family income that is spent on food)
Per capita house floor area of urban residents
Population aspects
Net population growth rate

Total number of people
Senior citizen population
Labor population
Society aspects
Percentage of urban population

Gini coefficient (measurement of relative income inequality)
Household computer popularization rate
College enrollment rate
The number of doctors per thousand residents
Minimum cost-of-living rate of urban residents
The aspects of resources and environment

Table 14. Resource and environment prediction indicator system
Indicator
Total energy demand (100 million
tonnes of standard coal)
Per capita biomass (kg)
Per capita grain (kg)
Per capita arable land (ha)
Per capita forest land (ha)
Per capita grassland (ha)
Per capita volume of meat/poultry
(kg)
Energy consumption of unit GNP
Exhaust
emissions (100 million
m3)
Waste water emissions (100
million m3)
Solid waste emissions (100
million m3)
CO2 emissions (100 million m3)
SO2 emissions (1 million tonnes)
CFC emissions (tonnes)
Land erosion area (1 million km2)
Forest cover (%)
Desertification area (10 000
Basis
Reflects
the
consumption
of
non-renewable
energy,
especially
non-renewable fossil energy represented
by coal
Reflects per capita possession of
renewable biological resources
Reflect the yield of grain as a principal food
source of humans
Reflects the change in per capita arable
land
Reflects the change in per capita forest
land
Reflects the change in per capita grassland
Reflects the change in per capita food
sources
Reflects the increase mode of GDP
Reflects the situation of industrial and
subsistence pollution
Reflects the emission situation of CO2
Reflects the emission situation of SO2
Reflects the emission situation of gas that
damages the ozone layer
Reflects the situation of soil and water loss
Reflects the change in forest resources
Reflects
the
situation
of
land
57

km2/year)
Industrial water consumption (100
million tonnes)
desertification
Reflects
the
demand
by
production for water resources
industry
Possible development situation in 2020

Economic aspects
China plans to achieve a quadrupling of per capita GDP by 2020 compared with 2000, which
means that per capita GDP in China will increase from US$850 in 2000 to US$3,400 in 2020.
By 2020, China will have achieved a comprehensively prosperous society, with per capita
GDP exceeding US$3000, which the country has benchmarked as the level of comprehensive
prosperity.
Average per capita income of urban residents will be 18,000 RMB. Per capita net income of
rural households will be 8,000 RMB. The Engel coefficient will be lower than 40% (i.e. less
than 40% of household income will be spent on food). Per capita housing floor area for urban
residents will be 30 m2. The Consumer Price Index will be stabilized at 3%. China will rise to
the ranks of high- and medium-income countries, compared with the current rank among lowand medium-income countries, thus accomplishing a great transition of national development.
By 2020, Chinas score in the Human Development Index11 (which provides normalized
measures of life expectancy, literacy, educational attainment, and GDP per capita) will be not
less than 0.80, and the ratio of rural to urban population will have been restricted to less than
1.80. People will become more wealthy, income distribution more equitable, and the
city-countryside dual structure problem, which haunts todays development prospects, will
have been mitigated to some extent. By 2020, the proportion of secondary industry in GDP
will have exceeded 75%, which means the basic fulfillment of industrialization.
Population aspects
Based on Sustainable Development Program in China: Chinese Society Advancement and
Sustainable Development (Lu Xueyi 2007), it is predicted that in accordance with a total
fertility rate of 0.18%, by 2010 and 2020 the population in China will grow to 1.37 billion and
1.451 billion respectively, and the number of elderly people in China will continue to grow at
a rate of 3.2% per year. In 2020, the percentage of elderly people at and above 60 years of age
in the total population will be 16.72%; in 2016, the labor force population (aged between 15
and 64 years) will approach a peak value of 1.01 billion people, and in 2020 will remain at
approximately 1 billion people. The average life expectancy by 2020 will be 76 years.
Social aspects
Based on Lu Xueyi (2007), institutions will play a huge role in promoting urbanization
because China is under rapid institutional transition. By 2020, the urbanization rate in China
11
http://hdr.undp.org/en/
58
will have increased by about 5-8% per year, from 41.8% in 2004 to 49.8-54.6%. Thus urban
capacity of 700-800 million people will have been obtained to shape a city system which
incorporates large, medium and small cities together with the characteristics of reasonable
structure, complementary functions and gross benefit maximization.
Based on Lu Xueyi (2007), it is predicted that by 2020, the Gini coefficient in China will be
maintained at the level of 0.395-0.474, the popularization rate of household computers at 20%,
college enrollment rate at 20%, the number of doctors per thousand residents at 2.8 and the
minimum cost-of-living rate of urban residents at above 95%.
The aspects of resources and the environment
The Chinese Government attaches great importance to food security, and plans that up to
2020, the arable land area will be maintained above 120 million ha. However, due to urban
development, the overall scale of land used in urban construction and the scale of urban and
rural construction land will increase; besides which, gardens, forestland and grasslands will
also increase to a certain extent.
In 2003, the Ministry of Land and Resources organized efforts to prepare the report Study on
Possible Supply of Major Mineral Resources in China. The report analyzed the predicted
demand for and national supply capacity of mineral resources in China by 2020, and
calculated that there will be a large gap for some important pillar minerals such as crude oil
and iron ore, and the competitive advantage of several minerals will been weakened.
In terms of water resources, based on Lu Xueyi (2007), it is predicted that by 2020, water
supply volume will reach 720 billion m3, among which about 650 billion m3 can be used for
most household and industrial purposes.
In terms of environment, since the State pays great attention to environmental protection, by
2020, environmental quality and the ecological situation will have been significantly
improved, the control of desertification will have fulfilled preliminary targets and the trend of
overall deterioration in grassland ecological environments will have been basically curbed,
which will contribute to fundamental improvement in the ecological environment.
59
5. CHINESE FORESTRY DEVELOPMENT BY 2020

Forest resources
According to the anticipated results in the Eleventh-Five-Year Forest Plan and the National
Plan for Long- and Medium-Term Forestry Development, by 2020, the total forest area of
China will reach 220 million ha, the forest coverage will reach 23.46%, the unit stock volume
of existing forest stands will be around 105 m/ha and the gross forest stock volume will
welcome a dramatic increase. Forests for public ecological benefits will be strongly
developed and their area will occupy more than 20% of the total land area. The contribution
of science and technology to forestry will be significantly highlighted, the contribution rate of
science and technology to increases in forestrys economic development will be 50%, and the
utilization rate of quality seeds for afforestation will reach 65%. There will be approximately
2,300 nature reserves nationwide, of various types such as forest reserves and wildlife
reserves whose area will be 140 million ha and take up 14.5% of the total land area. These
will provide sound protection for 95% of the countrys wildlife species under national priority
protection and include representative areas of all typical ecosystem types. There will be over
600 wetland reserves nationwide and about 80 wetlands of international significance. Over
60% of the natural wetlands will be effectively protected.
Table 15. Main anticipated indicator values of forest resources by 2020
Indicators
Anticipated value by
2020
23.46%
Over 220 million ha
110 million ha
Forest Coverage
Forest Area
National Key Ecological Forest12
Percentage of National Key Ecological Forests to Total Land 11.3%
Area
Percentage of Ecological Forests to Total Land Area
Over 20%
Area of Nature Reserves at Various Level
135 million ha
Percentage of Nature Reserves to Total Land Area
14%
Area of National Nature Reserves
90 million ha
Percentage of National Nature Reserves to Total Land Area
9.4%
Proportion of Well Protected Natural Wetlands
Over 60%
Annual Afforestation Area (Including Closure)
Approx. 5 million ha
Percentage of Newly Controlled Sandified Area to Total Area Over 50%
Suitable for Control
Unit Stock Volume of Forest Stand
105 m/ha
Supply Rate of Commercial Timber by Plantations
80%
Contribution Rate of Science & Technology Findings
50%
Seed and Seedling Supply Rate by Bases
80%
Utilization Rate of Quality Seeds
65%
Source: The Eleventh Five-Year Forest Plan and the National Plan for Long- and Medium-Term
Forestry Development.
12
According to Chinas National Plan, forests where the ecological status is very important and very
fragile and subject to ecological environmental protection of regional forests, trees and woodlands are
to be treated as National Key Ecological Forests.
60
Changes in forest coverage

In light of the development goal for Chinas forest coverage identified in the Resolution on
Accelerating Forest Development by the CPC Central Committee and the State Council, and
based on the results of the Research of Chinas Sustainable Forestry Development Strategies
and the Eleventh Five-Year Forest Plan and the National Plan for Long- and Medium-Term
Forestry Development, Chinas forest coverage rate will reach more than 19% of national land
area by 2010. Considering the afforestation area under the Six Key Forestry Programs and the
continuity of forest ecosystem development after 2010, and estimating that 60% of the net
increment of forest coverage rate will be achieved by 2020 (based on the planned net
increment of forest coverage rate from 2010 to 2030), by 2020, the forest area will reach 220
million ha; the forest coverage rate will reach 23.46%; the annually increased forest area will
be about 0.3% of the total land area; and the newly-established forest area will be 29.6 million
ha.
Changes in ecological forest area and commercial forest area
(1) Ecological forests: Approximately 110 million ha of national key ecological forests will
be effectively protected and they will occupy 11.3% of the total land area. Along with local
ecological forests, the total area of ecological forests under protection will occupy more than
20% of the total land area. The total area of nature reserves at various levels will reach 135
million ha and occupy 14% of the total land area13. The area of national nature reserves will
reach 90 million ha and take up 9.4% of the total land area, providing sound protection for
over 60% of the natural wetlands. Local nature reserves will amount to 45 million hectares.
(2) Commercial forests: A large area of efficient, fast-growing and high-yield timber forest
bases will be developed. It is planned that 13.33 million ha of fast-growing industrial timber
forests will be established to cultivate valuable tree species and large-diameter timber species.
These will mainly be established by State-owned forest farms and forest enterprises. Secondly,
significant areas of bio-energy forests will be developed. The State plans to develop
fast-growing, high-yield, high-heat and high-oiliness bioenergy forest bases and construct a
number of demonstration bases for biological diesel oil and bio-ethanol energy forests in
eastern and central China during the next decade.
Area of forests under sustainable management
The Chinese Government attaches great importance to forestry development and has
formulated a series of guidelines and measures to ensure Chinas forestry development
obtains remarkable achievements. The most significant advances in recent times include:
Chinas forest resources have increased in terms of both forest coverage and stock volume,
the excessive exploitation of forests has been effectively controlled, forest resource
management has been effectively strengthened, and forest quality is being gradually improved.
Since UNCED in 1992, the Chinese Government has also paid great attention to sustainable
13
There is overlap between the area of Nature Reserves and Ecological Forests.
61
forestry development and sustainable forest management, and viewed this as the central goal
of Chinas forestry development. Currently, Chinese forestry is undergoing an historic
transformation from having a core focus on timber production, to mainly focusing on
ecological improvement and gradually entering into a new phase of sustainable development.
As sustainable forest development is a dynamic concept, it is very difficult to accurately
assess and estimate the area of sustainably managed forests in China. However,
market-oriented forest certification has witnessed rapid development in China. By 2007,
750,000 ha of forests managed by seven forest enterprises had achieved Forest Stewardship
Council certification, which is an international certification system providing proof of
sustainable forest management, as adjudged by an independent, accredited third party. With
green developments in international markets, and the improvement of Chinese forest
management, there will be many more forests in China approved by certification. In line with
the current rate of development, the area of certified forests in China can be forecast to reach
4.5 million ha by 2020.
Stock volume, increment and annual harvest
By 2020, the total forest area will reach more than 220 million ha, the forest stock volume
will reach 14.5 billion m and the average annual growth increment in fast-growing and
high-yield forest bases nationwide will be about 15 m/ha. With further improvement in forest
breeding and cultivation technology, there is promise for growth to realize an average annual
increment of 20 m/ha in fast-growing and high-yield forest bases.
By 2020, Chinas annual harvest will be increased on the basis of current management levels
to meet 70-80% of the domestic demand of timber, i.e. 304 million m. Under reasonable
forest management, the standing stock volume per ha can reach the worlds average level with
annual allowable cut of around 420 million m. Such an increase will mainly result from the
improvement of forest quality. Increases in annual increment and gross stock volume will
provide potential room to markedly increase the sustainable forest harvest. Besides, thanks to
the improvement of quality seeds and intensive management of timber forests, the output per
unit area will be increased and thus more timber can be produced, while the forest area is kept
relatively stable.
Forest product production
According to the specific objectives of Chinese forest resource protection and development in
the new period, and the program of fast-growing and high-yield forest base development, as
well as the overarching trends in Chinas macro-economic development and predictions for
forest industry development, by 2020 the nations total commercial timber supply will be
about 304 million m. The output of wood-based panels in 2020 is expected to be around 1200
million m.
62
Bamboo will be an important substitute for wood. Characterized by its short growing cycle
and large output, bamboo also has superior qualities to wood in certain fields, including
decoration, furniture and craftwork. According to the national forestry development plan, the
output of bamboo products by 2010 will be 31.88 million tonnes and bamboo pulpwood
production will be 6.25 million tonnes. These production levels will increase markedly by
2020.
Currently China is the country that produces the largest volume of pine rosin. In light of
development trends in the worlds pine rosin product market, it is anticipated that Chinas
yield of pine rosin will be around 1.2 million tonnes by 2020.
Demand for forest products
A study by an SFA Project Team making predictions of forest product supply and demand
during the Eleventh-Five-Year Plan period shows that the annual demand for timber in China
in 2004 was 242-247 million m, while the demand for timber in 2020 is anticipated to be
457-477 million m. From this analysis it appears that (excluding farmers demands for
self-produced wood and fuel wood), the gap between supply and demand for commercial
timber in 2020 will be 150-170 million m and a shortfall between domestic supply and
demand will still exist.
Table 16. Chinas gross consumption of wood products and structure in 2004
and anticipation for 2010 and 2020 (unit: million m)
Structure of Supply and Demand
2004
Framework
2010
2020
34.6
41-43
32-34
Decoration
19
34-36
40-42
Construction
30
29-31
34-36
83.6
104-110
106-112
Furniture
11
20-22
35-37
Paper
44
66-70
140-145
Wood-based Panels
83
110-120
141-143
20-25
25-30
35-40
241.6-246.6
325-352
457-477
Building
Architecture
Subtotal
Miscellaneous
Total
Table 17. Correlation between timber consumption and national economy

Period
GDP Growth Rate
Growth
Rate
of
Timber
Consumption
Elasticity of Timber Supply
1998-2004
2004-2010
2010-2020
9.7%
7.8%
7.2%
7.8%
5.4%
3.6%
0.8
0.7
0.5
and Demand
63
Chinas share in the global forest product market through foreign trade
Currently, China is one of the major countries involved in forest product trade in the world.
Chinas forest product trade volume accounts for 7% of the worlds total, of which the import
volume accounts for 10.5% and the export volume accounts for 3.3%. In terms of imports,
China is the worlds largest importer of industrial logs, wood pulp and waste paper. China is
the fourth largest exporter of wood-based panels. In addition, China has been the largest
exporter of wooden furniture and plywood since 2005.
Forest products imported by China are mainly commodity products including logs, sawn
timber, waste paper, wood pulp and so forth, while exports are mainly finished products e.g.
furniture, wood flooring and plywood. Considering the international context, especially the
increasing importance attached to environmental protection in all countries, there are daily
more and more countries restricting and prohibiting the harvest of natural forests, and
crackdowns on illegal logging and timber smuggling are increasingly reinforced. In addition,
many major timber exporting countries for example, the Russian Federation have
adopted measures to limit log exports, such as by increasing export tariffs so as to improve the
value-added component of export commodities, and to develop their own respective national
economies. It is forecast that the international timber market will be further tightened in future
and continuous increases in timber prices will be inevitable. Chinas demand for raw materials
and commodity products is increasing so the import share will be gradually increased based
on the current situation; Chinas forest product import volume will continue to account for
around 10% of the worlds total. In terms of exports, China is now involved in negotiating a
number of trade conflicts and disputes. With the frequent emergence of various trade barriers
e.g. anti-dumping and anti-subsidy measures, the timber industry is operating in an
increasingly difficult environment to further expand exports. Generally, Chinas forest product
production will increase to meet a degree of increase in demand for Chinas exports, but the
rate of growth will be steady and moderate. The proportion of Chinas forest product exports
in 2020 is anticipated to be around 5% of the worlds total.
Conflicts between supply and demand for timber in China
Analysis of the balance between the supply and demand for timber and major forest products
in China shows that a gap exists between projections for supply and demand for timber during
the period 2010-2020. China has an annual demand of 150170 million m (roundwood
equivalent) for timber and primary wood products. The important contributing factors to the
gap are the increasing demand for timber in line with rapid socio-economic development, and
the rapid growth of exports e.g. furniture, building materials (mainly wood flooring),
wood-based panels (especially plywood) and paper products, as China is becoming a
manufacturing center for wood-based products. China will be mainly short of high-quality,
large-diameter logs, in particular valuable hardwood species, while the timber demand for
fiber-based boards (including wood pulp, fiberboards and particle boards) can basically be
64
met. Against the gap between supply and demand, China is striving to establish a large area of
fast-growing and high-yield forest plantations amounting to 13.33 million ha and with an
annual timber yield of 130 million m. Together with the yields of general forests for timber,
the annual domestic timber yield will reach 304 million m and thus the dependence on
imports will be greatly reduced.
Development trends in the forest product industry
According to the major trends of forest product supply and demand at home and abroad, as
well as the requirements of Chinas socio-economic development and its impacts on the forest
product industry, the development of the Chinese forest product industry will be dominated by
the following trends:
(1) In the past decade, the Chinese forest product industry has experienced a period of rapid
development mainly in terms of production volumes. In the future five to ten years, industrial
development will be promoted mainly in terms of quality. Forest product processing
enterprises will be transformed from being pulled by exports and pushed by resources, to
being enterprises driven by research and development. OEA and OEM enterprises will be
reduced, ODM and OBM enterprises 14 will be increased and an industry structure that
prioritizes large enterprises will be formed.
(2) Chinas wood resources will shift core production from natural forests to plantations;
meanwhile, bamboo, rattan, other herbaceous, wooden and gramineous plants and waste
woods will be widely utilized. Society will increasingly demand harmonization between the
quality, performances and functions of wood-based materials and wood-based products and
the ecological environment. As a result, the future development of the Chinese forest product
industry will be characterized by fast, but moderate growth based on an optimized industrial
structure, with comprehensive benefits and the reduction of energy consumption.
(3) The economic growth of the forest industry will change from extensive to intensive
patterns, so as to improve productive efficiency, maximize the use of limited resources, and
realize the largest values. Increasing scale of production is an inevitable trend for the forest
product industry, particularly the wood-based panel and wood pulp and paper production,
with high added-values and obvious scale benefits.
(4) Non-public-owned forests have shown strong vitality. The state will continue to encourage
private capital to invest in the forestry sector in future. With continuous investments of
foreign capital and private capital, as well as the emergence of trading companies, the
financial capacity of the forest product industry is being reinforced and the holistic sectoral
trend of mergers and reformations will continue.
14
OEA (Original Equipment Assembling), OEM (Original Equipment Manufacturing), ODM (Own
Design Manufacturing), and OBM (Own Brand Manufacturing) are patterns of enterprise being
developed in China.
65
(5) The emergence of various trade barriers and the development of forest certification will
cause changes to Chinas export structures, patterns and targeted countries. Well-known
brands will gradually become the dominant forces in the forest product market, more attention
will be paid to brand competition and service competition, and the implementation of brand
strategies will be an inevitable general trend.
Forest bio-energy
Development trends of forest bio-energy
According to the Long- and Medium-Term Development Plan for Renewable Energy
formulated by the Chinese government, by 2020, the electricity generated from biomass will
reach 30 million kilowatts, biological liquid fuel production will reach 10 million tonnes, the
annual utilization of methane will reach 40 billion m, the production of biological solid
formed fuel will reach 50 million tonnes and the annual utilization of bio-energy will account
for 4% of energy consumption. Therefore, being oriented to market demands, the
development of forest bio-energy will use production methods integrating forest products and
oil, forest products and electricity, and so forth, to accelerate the development of a number of
oil forest bases and wood-based energy forest bases. China is striving to develop raw material
supplies in the energy forest bases for production of biological diesel oil and bio-electricity to
meet at least 30% and 4%, respectively, of the production goals set for bio-energy and
renewable energy in the Long- and Medium-Term Development Plan for Renewable Energy.
Advantages and restricting factors of forest bio-energy development
(1) Advantages: Chinas advantages in developing forest bio-energy include the abundant
tree species resources suitable for energy forests and rich land resources suitable for growing
forest energy crops. China presently has more than 57 million ha of barren hills and lands
appropriate for afforestation, and over 100 million ha of marginal lands unsuitable for
agricultural production e.g. saline and alkali lands and sandy lands among which many
marginal lands are suitable for planting energy forests of specific species. Consequently,
China has significant potential land resources that can be employed in developing energy
forests. A third significant advantage is that China is equipped with a solid level of energy
forest cultivation technology and expertise.
(2) Restricting factors: Currently, the scale of forest bio-energy exploitation and utilization is
too small to meet the requirement of industrialized utilization. Secondly, research, extension
and application of energy forest cultivation and utilization technology still lag behind. Thirdly,
the major focus of forest bio-energy, at present, is simply to cultivate and manage energy
forests as fuel wood forests. The current exploitation of biomass energy focuses on the
utilization of agricultural straws and underestimates the potential of forest biomass, and thus
has severely constrained the process of forest bio-energy development.
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Impacts of related policies

It has been largely common sense for the international community to develop renewable
energy sources e.g. wind energy, solar energy, hydrological energy and bio-energy. The
national and international political environment and policy directions related to energy will
greatly accelerate forest bio-energy development. The Chinese government has attached high
importance to development of renewable energy sources, including forest bio-energy, by
issuing and bringing into effect the People's Republic of China Renewable Energy Law and
matching regulations, and formulating the Long- and Medium-Term Development Plan for
Energy and Renewable Energy. The Outline of the Eleventh Five-Year Program for National
Economy and Social Development has defined the goal of renewable energy development;
proposed to execute preferential taxation and investment policies and compulsory market
share policies to encourage the production and consumption of renewable energy and increase
the proportion of renewable energy in energy consumption; and clearly put forward a strategy
to accelerate the development of bio-energy, including construction of a number of power
stations generating electricity with straws and forest woods, and improving the productive
capacity of solid formed bio-fuel, fuel ethanol and biological diesel oil.
Technical issues in forest bio-energy utilization
According to future development trends for forest bio-energy, Chinas exploitation and
utilization should focus on strengthening research on key technology for the cultivation and
transformation of biomass resources. The key technologies in need of breakthrough
developments mainly include: (i) special cultivation technology for energy forest resources,
which mainly needs to focus on innovative research on cultivation technologies for the three
major forest energy resource types, specifically fiber energy forests, wooden oil energy forests
and wooden amylum energy forests; (ii) biomass thermo-chemical transformation technology,
i.e. pyrogenation, liquefaction, gasification, direct burning and other techniques to transform
forest biomass to biological oil, compound gas and solid carbon through thermo-chemical
treatments; (iii) forest biomass saccharification technology, which aims at using
lignocellulose biomass to produce inexpensive malt sugar for fuel, chemical products and
material production;(iv) preparation technologies for forest biomass derivatives, with the key
needs for technical research being the transformation of fuel ethanol and biological diesel oil,
biomass gasification, electricity generation, heating, solid formed fuel, the replacement of
petroleum-based products, the fast pyrogenation of biomass and biological oil preparation,
and so forth.
Prospects for NWFPs
China has made significant achievements and accumulated abundant experience in the
production of NWFPs that are under continuous improvement and development. The next
decade will be an important period for the rapid development of Chinas NWFPs. The scale of
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NWFP production bases will be further enlarged, efforts to readjust the structure will be
continuously increased, and industrialization will be further accelerated.
The Outline of Forestry Industry Policies issued by the SFA in 2007 proposes to focus on the
development of new, well-known, characteristic and high-quality economic forest product
bases, with attention to the storage, transportation, preservation, selection, packaging, deep
and fine processing of economic forest fruits; development of integrated utilization techniques
and a modern logistics and delivery industry; and the flower and forest wood seedling
industries as the key emphases of industry development. It also proposes to strongly develop
forest plantations to produce oils, forest medicinal materials, forest foods etc., and the
cultivation and collection systems of NWFPs in forests. The production value of plantations
and collection of economic NWFPs in 2006 was 255 billion RMB, which is four times that of
timber logging. Based on this proportion, by 2020, the net production value of plantation and
collection of economic forest products will reach 561 billion RMB and the net production
value of NWFPs15 will reach 740 billion RMB.
Services and functions of forests
The general trend
By 2020, the services and functions of Chinese forests in conserving water, protecting soil,
sequestering carbon and producing oxygen, regulating the climate, cleansing the environment,
conserving biological diversity, protecting the agriculture, etc. will be gradually strengthened.
Forest landscape structures will be optimized, the landscape fragmentation index will be
much reduced, landscapes will have more tiers, the area of semi-natural forest stands and the
forest area under sustainable management will be increased, and the forest quality will be
improved.
Forest tourism and recreation
The main way in which forest landscape resources are utilized and forest tourism is developed
in China is through the establishment of forest parks, safari parks and game parks and by
designating tourism areas in nature reserves. Improved access to forests makes recreation
available, including traditional forest tourism and daily forest leisure activities.
By 2020, the overall plan for construction and layout of forest parks throughout China will be
completed. The total number of forest parks will increase. Forest tourism will be rapidly
developed in future and forest parks, nature reserves and other state-owned forests will play a
key role in forest tourism.
Wildlife management
Stressing the in-situ protection of rare and endangered fauna and floral species and typical
15
Including forest tourism income.
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ecosystem types, Chinas wildlife management thoroughly implements the Wildlife

Conservation and Nature Reserves Development Program and the National Forest Nature
Reserves Development Plan to advance the sustainable and healthy development of biological
diversity conservation and nature reserves in China. Legislation on wildlife conservation will
be further improved, and management systems and law enforcement and supervision systems
for wildlife conservation at all levels will be further reinforced. By 2020, 95% of the wildlife
species of national importance will be effectively protected and 60% of the species resources
of national importance will be restored and increased.
Urban forestry
According to the strategic need to safeguard urban ecological security and develop
ecologically friendly cities, as well as requirements to develop cities within forests, roads
within green belts, houses in garden settings, and for people to live in natural landscapes, it is
necessary to establish an urban forest ecological network. This urban ecological network
should be dominated by forest trees, but in appropriate quantities and in efficient and diverse
arrangements, utilizing diverse plant species and establishing classic natural landscapes so as
to form a green ecological circle that is harmoniously integrated with urban areas, peri-urban
areas and suburban areas. Development of urban forests should integrate urban parks, gardens,
green spaces, waterways, roadside forests, forest parks, nature reserves and so forth.
By 2020, China will establish a comparatively improved urban forest network with large-scale
continuous forests and broad forest corridors as the principal framework, and various types of
forest shelterbelts as supplements. It is envisaged that 70% of cities in China will have a
forest coverage rate of at least 40%. Forests comprising mainly arboreal species will be the
priority and will form the principal part of urban green spaces. Urban eco-environments will
be improved to a great extent and the phase goal to see blue sky, clean water, and green land
will be generally achieved.
Forests and water
Forests have important functions in conserving water supplies and preserving soil and water
quality, especially by supplying water in drought seasons and preventing floods in rainy
seasons, as well as improving water quality. In the coming years, China will mainly adopt
measures to regulate the relationship between forests and water, including: (1) forest
ecological improvement in key watershed areas; (2) the establishment of compensation
mechanisms for forests ecological benefits in conserving water; and (3) the acceleration of
forest network and water network development.
Forest biological diversity conservation
According to the Wildlife Conservation and Nature Reserves Development Program and the
National Forest Nature Reserves Development Plan, by 2020, nature reserves established and
managed by the forestry sector will account for around 14.5% of the total terrestrial area in
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China. It is planned that 95% of wildlife species of national importance and all typical
ecosystem types, and 90% of the important natural wetlands, will be effectively protected.
Additionally, 60% of species of national importance will be restored and increased.
Forest carbon sequestration: potentials and limitations
Due to the tremendous population pressure in China, and some unscientific production
methods, carbon storage in the countrys terrestrial ecosystems is still at a low level and the
potential capacity of forest vegetation to sequester carbon is still far from being fully utilized.
Chinese forests have strong potential for increased carbon storage: (1) the enlarged
afforestation area can increase the capacity of forest carbon storage; (2) the reinforced forest
management can improve forests carbon sequestration; and (3) the regeneration and
reafforestation of clear-cut areas of mature forests and over-mature forests can expand the
capacity of forest carbon storage.
Limiting factors: (1) breakthroughs are needed on topics such as afforestation technology on
difficult sites, such as desertified lands, sandified lands and other infertile lands with harsh
environments; (2) forest quality and forest land productivity are still in need of improvement;
and (3) public awareness of forests roles in carbon sequestration, emission reductions, carbon
storage capacity expansion, etc. is still insufficient.
Forests social functions
Forests and employment
In 2020, forests will make a greater contribution to employment, mainly in the following
aspects: (1) the employment capacity of the tertiary forest industry, dominated by forest
tourism and services, will be strengthened; (2) the development of the forest product
processing industry, particularly furniture manufacturing, NWFP processing, sawn timber
processing and bamboo-and-wood-based product processing will provide many employment
opportunities; and (3) employment in primary forest industries will remain stable.
Forests roles in rural development
Issues related to agriculture, rural areas and rural populations are among the most important
issues for the Chinese government to solve. Among them, rural economic development is of
particular significance. The key to developing the rural economy currently lies with the
implementation of the strategy for urban-rural integration. In the next decade, forestry will
play a crucial role in accelerating holistic, harmonious and sustainable rural development.
Forestry can advance rural economic development by providing employment opportunities to
surplus rural labor forces on the one hand, and by helping farmers to increase their incomes
from timber on the other. Additionally, the implementation of the key forestry programs,
especially the Program for Conversion of Cropland to Forest will effectively improve the
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ecological environment in rural areas. The rapid development of forest-friendly and

ecologically-friendly cultures will actively promote Chinas rural culture.
Overview of forestry in 2020
Advantages and opportunities
(1) The Chinese government has attached great importance to ecological improvement. The
Chinese government views the protection of the ecological environment as an important
outcome and policy. The 17th National Congress of Communist Party of China put forward
the goal to construct an ecologically educated and prosperous society by transforming the
countrys growth from an orientation based on resource consumption, to one based on
resource conservation. A range of ecological and environmental indicators e.g. forest
coverage rate has been included in the set of criteria that will determine achievement of the
goal to build a prosperous, and holistically balanced society by 2020. Therefore forestry, as an
important force for ecological improvement, will continue to be regarded as important in the
future. The State has strengthened its investment in forestry and, with the in-depth focus on
forest ecological improvement, such inputs will be further strengthened, with substantial
governmental financial support applied to compensation for provision of ecological benefits,
under the Six Key Forestry Programs.
(2) The reform of the collective forest ownership system will accelerate forestry development.
The reform of the collective forest ownership system is being carried out in various pilot
provinces. After three years work, forest farmers in various localities have increased their
investment in forestry after being granted forest property rights and their incomes have been
increased by various degrees. Forest farmers in some southern provinces have achieved some
remarkable income increases. In terms of the macroeconomic context, the national timber
supply has been increased, and in terms of forest product enterprises, timber sources have
been diversified and the resource restrictions due to human factors have been reduced. With
appropriate and carefully designed implementation, the reform of the collective forest
ownership system will be an important driving force for Chinas forestry development in the
future.
(3) Chinas timber supply increases. By 2020, with the basic stabilization of the forest
property rights structure and the gradual deepening of the collective forest ownership system
reform, farmers initiatives in afforestation will be improved and more timber will be
provided. Thanks to good planning, the area of fast-growing and high-yield forests in China
will have increased significantly. Meanwhile, thanks to technological improvements, the
utilization of new species, and the application of new cultivation and management technology,
Chinas industrial timber production will be increased and the total afforested area will be
increased. The establishment of the national timber security safeguarding system will also
enhance the national timber supply.
(4) The competitive advantages of the forest product processing industry will be maintained.
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The relatively inexpensive labor force and relatively cheap raw materials are a development
trend, which will maintain its competitive advantages in forest processing for the long term,
thus, the supply of low cost labor to forest product processing enterprises will be guaranteed16.
International demands for forest products will also continue to increase, and thus the major
risk to forest product processing enterprises lies in the acquisition of raw materials. However,
China will increase supplies of domestically-produced timber and NWFPs, the internal
structures and external positioning of such enterprises are being rationalized, and the
competitive advantages of the Chinese forest product processing industry will evolve from
dependence on scale and low costs to being strongly based on research and development, with
strong marketing channels, etc.
(5) The demands for tertiary forest industry services are continuously increasing. With
ongoing improvements in the quality of peoples lives, the demands for forest tourism and
recreation will increase. Forests provide important tourism locations, and will attract
significant attention from people seeking holiday and recreation facilities. In this context,
forest tourism products will be continuously promoted to meet peoples needs for forest
ecology and forest culture. Thus, forest tourism will become an important growth pole for the
forest economy.
Disadvantages and challenges
(1) The national forest resources are presently insufficient in terms of quantity, poor in quality,
and unevenly distributed. Forest management is carried out in an extensive manner with low
benefits and poor holistic forest quality. There is an enormous gap to be bridged to achieve
sustainable management. According to the Sixth National Inventory on Forest Resources, the
average unit forest stock volume per ha in China is only 84.75 m, that of the plantations is
only 46.65 m, and the tending of middle-aged and young trees, as well as the improvement of
poor quality and poor efficiency forests, still requires major improvement.
(2) The ecological environment is changing unpredictably. The changes in the ecological
environment e.g. global warming and increased desertification have impacts on the protection,
restoration and development of Chinas forest resources.
(3) Forest-related technology is weak. Investments in forest science and technology (S&T) are
insufficient. The capacity for continuous S&T innovation is weak. The forest S&T extension
system is unreliable and the disconnection between S&T and production has not been
fundamentally and effectively resolved.
(4) Forest product trade faces challenges. In recent years, with the rapid development of
Chinas international forest product trade and the escalation of shares in international markets,
a number of international trade disputes have occurred in succession.
16
As forecast by the China Social Science Academy, theChinese population will reach a peak in 2030,
thus the labor supply is increasing through 2020.
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(5) The institutional obstacles restricting forestry production still exist. China has not yet
established a macro forestry regulation system, and the support services systems are still
adapting to the market-oriented economic system. Reforms in the key forest areas, the
state-owned forest enterprises, and the state-owned forest farms are sluggish. The property
rights of forest resources need to be more clearly defined.
Long-term economic vitality
(1) Institutional reforms will make forest farmers the most important builders of Chinas
forestry. With the in-depth reform of collective forest property rights in China, farmers will
increasingly obtain rights to forest lands and will naturally also acquire more economic
benefits when they obtain rights to these lands. By 2020, a large proportion of the rural labor
force will be actively engaged in forestry production, and forest farmers will become a very
important force in the ecological, economic and cultural development of Chinese forestry.
(2) Economic globalization and the development of free trade systems enhance the strengths
and competitiveness of the Chinese forest industry. At present, economic globalization and
free trade are accelerating continuously. These favorable factors provide important
development opportunities for China to implement the going global strategy 17 and to
enhance the strengths of the forest industry and the competitiveness of forest products.
(3) The governments public financial policies provide important support and guarantees for
forestry development. The government will improve its regulation mechanisms for the forest
economy and establish a reliable safeguarding system for forest industry development by
continuous forestry reforms and innovations, including improvements to the legal system,
policy system, investment system, human resources system and S&T innovation system.
(4) The participation of society as a whole will inject new vitality into forestry development.
The boom of the nations voluntary tree-planting activities is arousing wider public awareness
of ecology and effectively speeding up the development of afforestation and greening, and
development of community forests. These initiatives facilitate the building of a beneficial
atmosphere to involve the whole of society in forestry.
17
This means that Chinese enterprises will go abroad to do business.
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6. HOW TO BUILD A BETTER FUTURE?

Responses to changing social needs
In over a decade from now, to 2020, after being satisfied with basic subsistence materials and
reaching the initial stages of prosperity, peoples lives will be continuously ameliorated by
widening consumption of goods and services, optimizing the types of goods consumed,
meeting the diverse needs for goods, services and culture, and improving the overall standard
of living. At the national level, peoples consumption is changing from mainly subsistence
consumption, to a combination of subsistence consumption, development consumption and
recreational/luxury consumption. With people becoming generally more prosperous, most will
have an intense desire to see both their living environment improved, and improvement in
their quality of life. Societys need for forests will change from simply looking to increase the
quantity of forests and forest ecology to seeking improvement with equal focuses on rates of
growth and quality.
This means that the forestry sector will have a multi-layered and multi-purpose development
task in the coming period. It will be faced with various challenges, e.g. insufficient forest
resources, the vulnerable ecological environment, and the huge gap between forest product
supply and demand. Such issues must be appropriately solved in order to meet the changing
social needs. As a result, the SFA will regard accelerating modern forestry construction as a
development theme, regard transforming forestry growth patterns as the main route, and
regard establishing the three major forestry systems as the development objectives. The SFA
will also exert itself to cultivate forest resources, deepen forestry reforms, advance forestry
revitalization through science and education, administer forests in compliance with laws,
strengthen forest management, enhance supporting infrastructure, give full play to the three
benefits18 of forests and meet the diverse social needs, so as to make a greater contribution to
the development of the Socialist New Countryside and the construction of a harmonious
society.
Policy changes inside and outside the forestry sector
Up to 2020, forestry development faces both favorable circumstances and tough challenges,
and various uncertainties will have impacts on Chinese forestry development.
The favorable policy factors inside and outside the forestry sector include:
(1) The policy context for forestry development will be more agreeable. In order to solve the
issues related to agriculture, rural areas and rural populations, the Chinese government has
issued various preferential policies, including the abolishment of agricultural taxes, direct
compensation to food-growing farmers, and other similar measures. Farmers directly engaged
in agricultural production and food production fully enjoy the governments preferential
policies. Compared to food-growing farmers, forest-managing farmers still bear a greater
18
Economic, ecological and social benefits.
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burden of taxation. The Chinese government is expected to start to gradually adjust policies to
alleviate forest farmers burdens and issue pertinent preferential measures to encourage
farmers to invest in afforestation and ecological environment improvement.
(2) The global responses and adaptation to climate change have brought new development
opportunities for forestry. The response to global climate change has generated historic new
missions and new development opportunities for forestry. The initiation and implementation
of the Clean Development Mechanism, Kyoto carbon markets, non-Kyoto markets, and
related mechanisms will play an active role in driving afforestation, reforestation and forest
protection. In 2007, the Chinese government committed to the APEC conference held in
Sydney, to build the Asia Pacific Network for Sustainable Forest Management and
Rehabilitation. This network will promote forestry development in the Asia-Pacific region and
even at the global level, and will also inject new vitality into the already rapid forestry
development in China.
(3) Forests policy will affect energy. With the reduction of petroleum-based energy in the
world, bio-energy including biological diesel oil and bio-ethanol will take up a greater
proportion of global and national energy budgets. Bio-energy industrialization will be sped up
in China and the marketing level will be improved. Chinese bio-energy development will be
on a rational basis. Demands on corresponding bio-energy will rise. Forests as important
sources for bio-energy industry will receive greater attention from enterprises and the public.
The development of energy forests will be included in the strategic plan for industrial
development of national importance, as an important forest type, and energy forest
development will help to effectively advance the healthy development of Chinese forestry.
(4) Urban areas have real needs for forest policies. Chinas urbanization process has gradually
accelerated and cities need policies to regulate forestry development in urban areas. Urban
forestry policy must meet the objectives of regional development planning. The population in
coastal developed regions is greater than in inland regions and per capita land area is much
smaller. Hence, urban land use is heavily constrained, so urban forestry policy and industrial
development policies need good cooperation. Urban forestry development is particularly poor
in the western region, where urban forestry policy must be coordinated with policies designed
to protect against land degradation and other environmental protection policies
(5) The CPC and the government attach importance to forestry policy. The CPC central
committee and State Council attach great importance to the development of forestry. Some
policy documents such as "On speeding up forestry development" and "To promote reform of
the system of collective forest right decision" have been released in the new century. They
have promoted the development of forestry greatly in China and provided a pointer for all
levels of government to make forestry policy. Forestry will affect farmers incomes more and
more, with the collective forest tenure reforms and ecology projects. Rural issues, including
forestry, will remain a very high priority for Chinas government, given that the majority of
Chinese still live in rural areas. Forestry policy is also very important to China's recycling
development goals, by contributing to the reduction of raw resource consumption, and to
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reuse and recycling.

(6) Public participation in making forestry policy: The ways of achieving broad public
participation in forestry policy are diversifying and include opportunities to participate in the
people's congress and political consultation with NGOs. More and more NGOs are having the
opportunity to influence the development of forestry policies and promote policy-making,
implementation and provide feedback on the entire process. Participatory community forestry,
a system of public hearings, and the government information systems, as well as development
of public associations support the development of more effective, fair, feasible and
participatory forestry policies.
The unfavorable factors inside and outside the forestry sector include:
(1) Land use: The continuous growth of the Chinese population imposes increasing pressure
on food production. China has established a basic cropland protection system to meet the
challenges of food production. However, with the continuous acceleration of economic
development and urbanization, new land resources are needed. On the precondition that
croplands are strictly protected, forest lands will become the main source of construction land
and this will cause gigantic pressure on the conservation of existing forest resources and
potentially undermine the development space for forestry.
(2) Economic factors and forest product trade: There are numerous fluctuations in the
forestry economy, because humans, land issues, financial issues and similar external issues
affect forestry, as well as forestry policy-making and implementation. As a developing
country, China's economy has many uncertainties, and the uncertainties cannot be predicted
using a simple linear analysis, because of the multiple layers of economic complexity. All this
requires forestry policy to make specific analyses to address specific issues and to adjust
constantly to change.
The rapid socio-economic development of China is placing new and greater demands on
forest product production and trade. For a relatively long period, the timber supply capacity of
Chinas forests has struggled to effectively meet demands; and the gap between supply and
demand still exists. Important log supplying countries for China e.g. the Russian
Federation and Indonesia will further adjust their policies on log exports. The international
market will also likely apply stricter environmental criteria on Chinas forest products.
Chinas forestry development will be heavily impacted by policy changes relating to
international forest product trade.
(3) Factors relating to institutional restructuring: China is currently in an economic
transitional period. In order to meet the needs of socio-economic development, the State
Councils relevant sectors will inevitably be restructured after some time. In all likelihood, the
SFA will be restructured and such organizational change will undoubtedly cause a series of
policy impacts.
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(4) Impacts of natural disasters: Natural disasters occur periodically, including some that may
affect, or be mitigated by forestry (including typhoons, earthquakes, landslides, floods,
sandstorms, etc). They require the forestry sector to establish capacity, policy support, and
mechanisms to deal with forecasting and assessment of and reconstruction of damage
caused by natural disasters. China has a vast land area, with rich and varied forests
producing a wide range of forest products. This implies potential local susceptibility to a
wider range of natural disasters requiring a broader range of contingency plans and policies to
prevent and mitigate the effects of disasters.
Institutional changes
Reform of the forest ownership system
While continuously accelerating the reform of the collective forest ownership system across
the country, China will also gradually deepen other reforms, e.g. the reform of state-owned
forest farms, the reform of the key state-owned forest resource management system and forest
enterprises, the reform of the classified forest management system, etc. This process of
reforms is expected to thoroughly revamp the overall system and eliminate many institutional
issues hampering forestry development. China will gradually form new systems, mechanisms,
property right systems, management modes, market subjects, incentive mechanisms,
executive modes, policy measures and so forth, which can meet the needs of modern forestry
development. On the one hand, China will give full play to the market on issues that should
be solved by the market, and at the same time fulfill the governments responsibilities and
obligations on issues that should be solved by the government. On the other hand, reforms
will work to inspire the internal vitality of the entire forestry sector and mobilize forest
managers enthusiasm to strengthen the driving forces for forestry development.
Amendment and improvement of the Forest Law
The existing Forest Law was approved in September 1984, and amended in 1998. The
issuance and enforcement of the Forest Law has played an important role in protecting,
cultivating and utilizing (moderately) forest resources, accelerating the greening of the
national territory, advancing ecological improvement, safeguarding national eco-security,
promoting harmony between humans and nature, etc.
Since the implementation of the development strategy focusing on the ecological
improvement in 2003, Chinas forestry has undergone a significant and historic transition.
Consequently, some regulations in the Forest Law can no longer meet the needs of
development and thus amendment and improvement are needed.
Development of sectoral regulations
Considering the reality of forestry development and according to the authorization
stipulations of laws and rules, within the authority scope, the Chinese forestry sector will
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formulate a number of sectoral regulations, e.g. the Regulations on Supervision of Forest Tree
Seedling Quality, the Regulations on Safari Park Management, the Regulations on
Supervision and Management of Timber Transportation and so forth. Meanwhile, based on the
implementation requirements of the Administrative Permission Law, sector regulations that
control the permitted conduct by the SFA are under intense scrutiny and any sectoral
regulations and regulatory documents that violate the overarching regulations of the
Administrative Permission Law will be abolished, so as to actively promote sustainable forest
management and legitimate forestry production.
Improvement of related forestry policies
After the reform of the forestry ownership system, there will be significant changes in the
Chinese forest property rights structure. To adapt to such changes, protect the legal rights of
various property right holders, and mobilize their initiatives in afforestation and forest
management, corresponding changes will be required in forestry investment and financing
policies, taxation policies, resource management policies, property right transfer policies,
policies of ecological forests, and so forth.
Regional and global collaboration
China will continue to responsibly execute its commitments under forest- and
forestry-related international conventions and processes
As a responsible major international power, China will continue to responsibly execute the
obligations and requirements for forest protection and forestry development identified by the
Convention on Biological Diversity (CBD), the United Nations Convention to Combat
Desertification (UNCCD), the United Nations Framework Convention on Climate Change
(UNFCCC), the Convention on International Trade in Endangered Species of Wild Fauna and
Flora (CITES), the Ramsar Convention and so forth, and actively participate in and
promote the international forestry process.
China will actively participate in the development of related international forestry rules
China will further enhance research and studies on international forest-related rules, actively
participate in important international activities related to forestry, take part in the development
of various international rules, improve the Chinese forestry criteria and indicators system,
further strengthen the studies on WTO rules to meet the challenges of the international
markets, and attach importance to the development, improvement and implementation of
international forest product technological criteria, so as to advance the sustainable
development of modern forestry.
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China will make full use of the two resources and the two markets
19
China will actively implement the going global strategy, and make full use of the two
resources and the two markets, then develop domestic and overseas markets, and promote
the extroverted enterprises and actively join in international competition. The priorities
include (i) strengthening Sino-Russian cooperation in forest resource development, actively
investigating effective approaches and specific ways to cooperate with Africa, Southeast Asia,
South America, etc. in developing forest resources, and obtaining long-term resource security
through external investment to relieve the conflicts between timber supply and demand in
China; (ii) combining with external investment and implementing the policies on labor
exports for exploring selected countries forest resources to integrate foreign country forestry
development projects; and (iii) planned investment including installing mature technologies
and specialized equipment from China in the forestry processing industries of other
developing countries.
China will realize the transition of executive functions
The globalization of environmental issues and the development of free trade will certainly
lead to the internationalization of forestry, which will bring huge impacts on Chinas forestry
administration systems and policy systems. Therefore, China needs to further open the
forestry sector up to the outside world and improve the systemization, legislation,
standardization and programming of the forestry administration, to ensure the government
forestry agency provides better services and support in the new era of forestry
internationalization.
International cooperation and exchange of forest science and technology and professionals
Chinas modern forestry development and the fully implemented Six Key Forestry Programs;
on the protection of natural forests, the conversion of croplands to forests and so forth have
aroused the wide attention of the international community. Meanwhile many countries,
including China, also need to further strengthen international scientific cooperation and
exchange. The Chinese forestry sector will make full use of multilateral and bilateral
mechanisms to develop wide and in-depth international scientific cooperation in forestry in
fields including forest cultivation, processing and utilization, ecological protection, etc, to
improve forestry scientific development and advance sustainable forestry development in
China.
Forest science and technology advancement
Chinas key science strategies are encapsulated as revitalizing forestry by science and
education and thriving forestry by talents. The essence of these strategies is outlined in the
19
The two resources mean domestic and overseas forest resources. The two markets mean
domestic and overseas forest product markets.
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Resolution on Accelerating Forest Development by the CPC Central Committee and the State
Council; the Outline of National Plan for Medium to Long-term Scientific and Technological
Development 2006-2020; the Eleventh Five-Year Forest Plan; the National Plan for Long- and
Medium-Term Forestry Development; and the general requirements of the Plan for Long- and
Medium-Term Forest Science and Technology Development 2006-2020. Science and
technology advancements and innovations should be the principal driving forces for the
development of the forest ecological system and the forestry industrial system. These should
enable China to take a path marked by independent innovations for the development of
Chinas forestry, establish a national forest science and technology innovation system,
upgrade the holistic forest science and technology level in all aspects, support the rapid and
sound development of forestry, and accelerate forestry modernization.
Major developmental objectives
By 2020, a national forest science and technology innovation system with a rationalized
structure, mature functions, efficient performance, and strong support will be established.
The principal research fields will be those that aim to give China leading status in the world in
ecological and industrial advancement, and the contribution rate of science and technology
advancements to forestrys economic advancement will be increased to over 50%. The
research and development level of industrial technology will be improved, and the per unit
yield of industrial timber forests will be increased by 30%. The research and development of
sophisticated technologies to promote increases in forest biomass will see breakthroughs, and
the bio-technology production value will be increased by 20%. The utilization rate of timber
will reach over 80%.
Priority fields to be developed
Bio-technology and quality seed cultivation

Research on the relationship between forests and the environment
Construction of ecological systems and rehabilitation of degraded eco-systems
Prevention and control of forest disasters
Directed cultivation and sustainable management for forest
Efficient utilization of forest bio-based materials and resources
Forest eco-energy
Information technology and digital forestry
Equipment and technology for modern forestry
Macro strategies and forestry policies
Six forest S&T programs to be implemented
S&T Program for Ecological Improvement and Eco-Security

S&T Program for Forest Bio-Technology and Quality Seeds Cultivation
S&T Program for Protection and Utilization of Forest Biological Germplasm Resources
S&T Program for Industrial Development of Forest Biomass
80
S&T Program for Digital Forestry Development

S&T Program for Forestry Innovation Capacity Building
Working priorities and strategies

Firstly, ecological improvement mainly through afforestation and greening should be
reinforced and the ecological situation of the national territory should be ameliorated.
Voluntary tree planting initiatives will be substantially developed. The Six Key Forestry
Programs on (i) natural forest protection, (ii) conversion of croplands to forests, (iii)
desertification control for areas in the vicinity of Beijing and Tianjin, (iv) shelterbelt
development in the Three Norths and the Yangtze River Basin etc., (v) combating and
controlling desertification, control of soil and water erosion, and (vi) base development of
fast-growing and high-yield forests and coastal shelterbelt development will be continuously
implemented. The afforestation scale of such programs will be moderately enlarged.
Secondly, forest management and protection should be strengthened and forest quality should
be improved. The national key ecological forest management program and plan will be
initiated and implemented and the forest management scale will be enlarged. The cultivation
of valuable tree species will be accelerated and a national program on valuable species
cultivation will be initiated and implemented. Forest land productivity and resource utilization
should be improved. Prevention and control of forest fires, forest pests and illegal
appropriation of forest lands will be reinforced. Forest health will be promoted. The area of
forest lands area must remain above 310 million hectares.
Thirdly, nature protection should be enhanced and biological diversity should be strictly
conserved. The Wildlife Conservation and Nature Reserves Development Program will be
continuously implemented. The implementation plan of the wetland protection program will
be fully executed and the protection, restoration and sustainable utilization of wetlands will be
reinforced.
Fourthly, forestry industrialization should be developed and an ecological culture should be
promoted. Industries that are dependent on forests, e.g. bamboo and wood processing,
economic forests and forest food, forest medicinal materials, forest and wetland recreation
etc., will be developed. Green homesteads and forest cities will be promoted. Urban and rural
integration will be advanced. Societys needs for ecological products will be met. The goals of
advanced production, prosperity, and a sound ecological environment will be achieved.
Ecological education for civil society will be developed widely. An ecological culture will be
promoted, with emphasis on forest culture, flower culture, bamboo culture, tea culture,
wetland culture, wildlife culture, eco-tourism culture and green consumption culture.
Fifthly, a support system for forestry development will be established to provide effective
support for forestry development in terms of human resources, funding, institutional support,
legal systems, science and technology support and so forth. The government must enforce
more financial and monetary policies especially state subsidies, forestry insurance and loan
81
policies.
7. SUMMARY AND CONCLUSIONS
Main conclusions
The strategy for sustainable forestry development
The strategy for sustainable forestry development is being led by the scientific development
concept; to build a path to sustainable forestry development focusing on ecological
improvement; to establish a national territory eco-security system that gives priority to forest
vegetation and integrating forests and grasslands; to construct an ecologically educated
community living in a sound ecological environment; and to effectively protect, cultivate and
reasonably utilize forest resources, so as to serve the development of a resource-conserving
and environmentally friendly society and to contribute to the development of new socialistic
rural areas; the building of a prosperous society in a holistic manner; and the realization of a
harmonious relationship between humans and nature.
Chinas forestry blueprint to 2020
The blueprint of basic forestry development by 2020 will be as follows: Gross forest
resources are gradually increased and the quality of the forest ecological environment is
improved; forestrys status as a pillar of national development is enhanced; the forest
management system is reliable; forestry investment mechanisms are improved; forests
ecological, economic and social benefits are fully promoted, and the diverse and high-class
needs of the public are met; forestry industrialization is upgraded, the timber yield rises,
conflicts between supply and demand are relieved, timber supply security is guaranteed, the
variety of forest products processing industries is broadened and the scale is upgraded; and
forest tourism and forest services are normalized, with incomes from forest tourism,
particularly, becoming an important economic growth point in the forestry sector.
Major development indicators
The major development indicators include: A newly afforested area of 29.6 million ha, forest
coverage reaching 23.46% of national land area; an area of nature reserves distributed
throughout China totaling 161.2 million ha and accounting for 16.8% of the total land area of
the state; the total number of nature reserves of various types e.g. forests and wildlife
reaching 2,300, providing a high level of protection to 95% of wildlife species of national
protection importance and all typical bio-systems; the number of wetland reserves across the
country reaching more than 600, including around 80 wetlands of international importance,
and the effective protection of over 60% of all natural wetlands; an area of desertification
control of 20 million ha; urban tree coverage in 70% of Chinese cities reaching 35%; the rate
of quality seeds planted in plantations reaching 65% of total plantings, the unit stock volume
per hectare of existing timber plantations reaching approximately 100 m, and the contribution
rate of science and technology advancements to forest economic growth reaching 50%.
82
The main policy measures to realize the development indicators for Chinese forestry by
2020
The main policy measures to realize the development indicators for Chinese forestry by 2020
include:
Implementation of the forestry development strategy focusing on ecological
improvement, advancing the key forestry programs, promoting harmony between
humans and nature, and building an ecologically educated and aware society
To speed up modern forestry development, actively maximize forests ecological,
economic and social benefits, promote the development of an improved forest
ecology system, implement an advanced forest industry system and an ecological
culture system
To continuously strengthen forestry reforms, advance the reform of collective forest
property rights, the reform of state-owned forest enterprises, and the reform of
state-owned forest farms; gradually form a new system and mechanisms, new
property right systems, and policy measures to meet the needs of modern forestry
development
To readjust forestry policies step-by-step, relieve forest farmers burdens (such as
taxation inequities), issue pertinent preferential measures and encourage farmers to
invest in afforestation
To actively promote the CDM and gradually establish and improve a Chinese forest
carbon trade market; to include the development of energy forests into the strategic
plan for forest industries of national importance and accelerate the development of
forest bio-energy
To protect the legitimate rights of various property right holders and actively advance
the continuous improvement of forestry investment and financing policies, taxation
policies, resource management policies, property right transfer policies, policies on
ecological forests and so forth
Follow-up actions
According to the general goal of developing an ecologically friendly and ecologically
educated civilization put forward by the 17th National Congress of CPC, and the requirements
of the Eleventh Five-Year Forest Plan and the National Plan for Long- and Medium- Term
Forestry Development issued by the SFA, the following follow-up actions will be taken:
Greater efforts to implement the Natural Forest Protection Program, carrying out
strict management on natural forest harvests, effectively protecting the 94.18 million
ha of natural forests within the program areas, and afforesting areas in the upper
reaches of the Yangtze River and in the upper and middle reaches of the Yellow River,
covering an area of 5.79 million ha
Sound implementation of the Program for Conversion of Croplands to Forests and
Grass mainly in areas stricken by soil and water erosion in the Yangtze River Basin
and the Yellow River Basin, and areas stricken by sandification. Practical
83
implementation of related compensation policies for farmers whose croplands are

converted to forest or grasslands, encouraging the development of follow-up
industries with good market potential, thereby combining agricultural restructuring
with industrial development suited to local characteristics and resolving the long-term
subsistence issues for the farmers whose croplands are converted
Sound implementation of the Sand Control Program for Areas in the perimeters of
Beijing and Tianjin, and protect and increase forest and grass vegetation through
integrated approaches, e.g. designating reserved areas for enclosure, planting trees
and grass, managing small watersheds, restricting grazing and adopting enclosed
feeding, migrating for ecological reasons20 and rationalizing utilization of water
resources, protecting the 6 million ha of sand-affected lands and effectively
controlling sand damage in the capital and other major stricken areas
Continuously accelerate various afforestation and protection programs including the
Shelterbelt Development Program in the Three Norths and the Yangtze River
Reaches, the afforestation program in Taihang Mountain Areas and surrounding plain
areas, and the program on coastal shelterbelt systems, advancing the construction of
green spaces in the Three Gorges Area, establishing various shelterbelt systems and
protecting them in line with local conditions, and intensively controlling various
potential ecological disasters in these areas
Effectively protecting and restoring wetlands, establishing 222 wetland reserves and
rehabilitating important wetlands by rational allocation and management of water
resources
Protect and improve the natural ecological environment in Sanjiangyuan region of
Qinghai Province, and effectively restore the ecological environment in this area by
conversion of cropland to forest, mountain enclosure for forest cultivation,
desertification control, Blackland control21, rodent damage control, and so forth
Provide greater attention to the Wildlife Conservation and Nature Reserves
Development Program, intensively rehabilitate endangered rare species, restore
typical eco-systems, extend the area of nature protection, improve the protection
framework and practically protect Chinas wildlife resources, wetland resources and
biological diversity
Advance the integrated control of desertified areas and enhance the practical control
of desertification by vegetation protection, conversion of cropland to forest,
establishing mountain enclosures for forest and grass cultivation, and other measures
Accelerate forest industry development focusing on fast-growing and high-yielding
timber forests, promoting intensive forestry in suitable areas with necessary growing
conditions, accelerating the development of various types of timber forests and other
commercial forest bases, improving the effective supply of forest products including
timber, and alleviating environmental pressures through ecological improvement
20
This means relocating people in ecologically sensitive places to new areas.
21
This means controlling degradation of areas with black soil.
84
8. REFERENCES
Chen Yingzi. Impact Analysis on Chinese Environmental Policies System of Sustainable
Development Strategy. Population Journal. 2004(6): 55-60.
Chen Yong. Overview of Chinas Sustainable Development - China's energy and sustainable
development. Beijing: Science Press, 2007.
China's Sustainable Development Strategy of Forestry. Research Group China's Sustainable
Forestry Development Strategy Study General. Beijing: China Forestry Press. 2002.
Decision to Accelerate the Development of Forestry by the CPC Central Committee and State
Council, available at http://www.chinanews.com.cn/n/2003-09-10/26/345171.html 2003.
Forest
Law
of
the
People's
Republic
of
China
available
at
http://www.forestry.gov.cn/distribution/2005/03/04/xzxk-2005-03-04-35.html 1998.
He Xin. Urbanization and economic development. The rural economy, 2004 (S1): 110 ~ 111.
Jiang Zehui. Overview of Chinas Sustainable Development - China's forest resources and
sustainable development. Beijing: Science Press, 2007.
Li Yucai. Blueprint to achieve faster and better development in the new era - the National
Forestry Development "11th Five-Years" and the compilation of long-term plan. Beijing:
China Forestry Press, 2007.
Lu Xueyi. Overview of Chinas Sustainable Development - China's social progress and
Ministry of Science and Technology. Long-term national science and technology
development Plan (2006-2020) available at http://www.most.gov.cn/kjgh/. 2006.
National Bureau of Statistics of China. 2001 China Statistical Yearbook. Beijing: China
Statistics Publishing House. 2002.
National Development and Reform Commission. "National economic and social development
in the 11th Five-Years Plan Outline" available at
http://news.xinhuanet.com/theory/2006-05/22/content_4583148.htm. 2005.
State Forestry Administration, P.R. China. 2006 China Forestry Statistical Yearbook. Beijing:
China Forestry Publishing House. 2007.
State Forestry Administration, P.R. China. China Forestry Development Report in 2007.
Beijing: China Forestry Publishing House. 2007.
The State Development and Reform Commission. "Renewable energy medium and long-term
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http://www.sdpc.gov.cn/zcfb/zcfbtz/2007tongzhi/W020070904607346044110.pdf. 2007.
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The
State Forestry Bureau, etc. Forestry industry policy points available at

http://www.ynlycyw.com/zcfg/ShowArticle.asp?ArticleID=35&Page=5 2007
Wang Hao. Overview of Chinas Sustainable Development - China's water resources and
Wei Gaofeng, Long Kerou. Evolution model of China's population and China's future
population forecast. Science and Technology Consultation Guide, 2007 (13): 102-104.
Ye Yumin. Overview of Chinas Sustainable Development - China's urbanization and
Zhang Wenju. Overview of Chinas Sustainable Development - China's mineral resources and
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ASIA-PACIFIC FORESTRY SECTOR OUTLOOK STUDY II

WORKING PAPER SERIES

Working Paper No. APFSOS II/WP/2009/11

PEOPLES REPUBLIC OF CHINA FORESTRY

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS

APFSOS II: Peoples Republic of China

2. CHINESE FORESTRY THE STATUS QUO

3. FACTORS INFLUENCING FORESTRY DEVELOPMENT

4. POSSIBLE SOCIAL, ECONOMIC, POLITICAL AND

5. CHINESE FORESTRY DEVELOPMENT BY 2020

APFSOS II: Peoples Republic of China

6. HOW TO BUILD A BETTER FUTURE?

7. SUMMARY AND CONCLUSIONS

APFSOS II: Peoples Republic of China

INFORMATION NOTE ON THE ASIA-PACIFIC FORESTRY SECTOR OUTLOOK STUDY

APFSOS II: Peoples Republic of China

Demographic change is one of the most important influencing factors of Chinas

APFSOS II: Peoples Republic of China

products has been more active

APFSOS II: Peoples Republic of China

APFSOS II: Peoples Republic of China

APFSOS II: Peoples Republic of China

APFSOS II: Peoples Republic of China

APFSOS II: Peoples Republic of China

APFSOS II: Peoples Republic of China

APFSOS II: Peoples Republic of China

APFSOS II: Peoples Republic of China

APFSOS II: Peoples Republic of China

Research process and methods

APFSOS II: Peoples Republic of China

2. CHINESE FORESTRY THE STATUS QUO

APFSOS II: Peoples Republic of China

southwest remote provinces (autonomous regions, and municipality cities) as well as in

Forest area (10000

APFSOS II: Peoples Republic of China

Table 2. Forest resource catalogued by main forest area

Southeast Low Mountain and

Forest coverage change and regional difference

1973-1976 1977-1981 1984-1988 1989-1993 1994-1998 1999-2003

APFSOS II: Peoples Republic of China

APFSOS II: Peoples Republic of China

APFSOS II: Peoples Republic of China

A banner is a special administrative region in China.

APFSOS II: Peoples Republic of China

APFSOS II: Peoples Republic of China

Five Provinces in total

APFSOS II: Peoples Republic of China

APFSOS II: Peoples Republic of China

Increase rate (%)

Papua New Guinea

APFSOS II: Peoples Republic of China

Increase rate (%)

APFSOS II: Peoples Republic of China

Key forest product exports

APFSOS II: Peoples Republic of China

APFSOS II: Peoples Republic of China

APFSOS II: Peoples Republic of China

bio-electricity power plant is presently under construction.