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Chinas Wood Furniture

Manufacturing Industry: Industrial


Cluster and Export Competitiveness
Yang Hongqiang
Ji Chunyi
Nie Ying
Hong Yinxing

Abstract
China is the largest furniture exporter in the world. Its wood furniture industry has become an important part of the
countrys forestry economic development. Hence, investigating Chinas furniture industry cluster and export competitiveness
would benet the sustainable development of Chinas forestry industry. Our study indicates that, under the export-oriented
strategy of Chinas reform and opened economy, the countrys furniture industry has developed in three large areas over the
last 30 years, namely, the Eastern Pearl River Delta, the Yangtze River Delta, and the Bohai Rim Region. As the strategy
shifts from an export orientation to a focus on domestic demand, the countrys midwestern area will take over Chinas
industrial production. At present, Chinas furniture products have an important position in the world market. In 2010,
furniture exports accounted for 27 percent of the worlds total exports, with wood furniture accounting for US$10.6 billion
worth of exports, or 58 percent of Chinas total exports of furniture. Among the main export markets, the United States
accounted for 39 percent of Chinas total exports. In terms of international furniture trade, an important mutual relationship
exists between China and the United States. Chinas ofce furniture and kitchen furniture have price advantages, whereas the
bedroom furniture lacks price advantages. In particular, the production and export of mahogany furniture may be hampered
by raw material shortage because of the protection of tropical forest resources. This challenge puts Chinas furniture industry
in future competition with emerging countries such as Malaysia.

C hinas State Forestry Administration put forward a


strategy for adjusting the forestry industrial structure in
furniture manufacturing industry has developed rapidly in
the past 30 years (Dickson 2011). In 1978, the industrial
2000. The emphasis of the primary aspect of the forestry output value of Chinas wood furniture industry was less
industry (primary industry) is ecological forest construction, than RMB 1 billion, while in 1988 it increased to 47 billion,
which protects the environment. The secondary aspect of the and in 2008 it rose to RMB 144 billion (Xia and Yuan
forestry industry (secondary industry) is key to the strategic
2011). The international competitiveness of furniture has
adjustment. Economic growth in this aspect can be achieved
mainly by encouraging technological innovation. The
development of a tertiary aspect (tertiary industry) uses The authors are, respectively, Associate Professor/Vice Dean,
forestry ecological tourism as a new growth point.1 College of Economics and Management, Nanjing Forestry Univ., and
The structure of Chinas forestry industry has undergone Associate Professor, Center for the Yangtze River Deltas Socio-
economic Development, Nanjing Univ., Nanjing, China (yhqnfu@
continuous improvement in recent years, and the forestry gmail.com [corresponding author]); Lecturer, College of Economics
secondary industry has become the pillar of Chinas forestry and Management, Nanjing Forestry Univ., and Senior Research
economy. In 2010, its output value was more than 50 Associate, Research Center for Economics and Trade in Forest
percent of that of the total forestry industry (Zeng and Nie Products of the State Forestry Admin. (SINO-RCETFOR), Nanjing,
2010). As a very important sector of this aspect, the China ([email protected]); Professor/President, Jinling Inst. of
Technol., Nanjing, Jiangsu, China, and Professor/Director, SINO-
RCETFOR, Nanjing, China ([email protected]); and Professor/
1
In China, the forestry primary industry mainly includes the planting Director, Center for the Yangtze River Deltas Socioeconomic
and lumbering sectors. The forestry secondary industry includes six Development, Nanjing Univ., Nanjing, China ([email protected].
categories of forestry processing and manufacturing: sawn wood cn [corresponding author]). This paper was received for publication
and chips, panels, wood products, paper and pulp, wood furniture, in March 2012. Article no. 12-00037.
and others. The forestry tertiary industry mainly includes Forest Products Society 2012.
ecological tourism and forestry service sectors. Forest Prod. J. 62(3):214221.

214 YANG ET AL.


Figure 2.Composition of Chinas forestry industrial output
value in 2010.

Figure 1.Chinas forestry industrial output value (2000 to


2010).
changing to 39, 52.1, and 8.9 percent, respectively, in 2010
(Fig. 2).
To achieve the development of the forestry industry,
clearly been signicantly enhanced, and by 2000, China had China has continuously protected and fostered forest
overtaken Canada as the worlds largest furniture exporter resources, ensured the stable development of the basic
(Cao et al. 2004). Against the background of China being primary industry, offered key support to the secondary
the worlds largest furniture producer and exporter, study of industry by establishing the processing as the leading
the cluster distribution, export structure, and price advan- component, and promoted the growth of the tertiary
tage of Chinas furniture industry is necessary. The results industry. Through these measures, China has achieved the
of this study will help analyze and predict the future goal of improving the forestry industrial structure and
development potential of Chinas furniture industry, which realized the purpose of shifting the forestry economic
is important for the development to be sustainable. growth pattern (China State Forestry Administration 2010).

Introduction to Chinas Forestry Industry Chinas Forestry Secondary Industry and


Furniture Manufacturing Industry
From 2000 to 2010, Chinas forestry economy maintained
fast, steady development (China State Forestry Administra- Composition of Chinas forestry
tion 2011). The industrial output value of Chinas forestry secondary industry
grew from RMB 355.6 billion to RMB 2,277.9 billion, a 6.4 As the pillar of Chinas forestry economy, the secondary
times increase (Fig. 1). In 2000, the respective output values industry is mainly divided into six manufacturing catego-
of the primary, secondary, and tertiary industries were RMB ries: sawn wood and chips, panels, wood products, paper
238.9 billion, RMB 103.5 billion, and RMB 13.2 billion, and pulp, wood furniture, and others.
with proportions of 67.2, 29.1, and 3.7 percent, respectively. According to ofcial statistics for industrial output values
The forestry economic development of the secondary and in 2000, the panel manufacturing industry accounted for
tertiary industries seriously lagged behind the primary, thus 28.6 percent of the entire forestry secondary industry,
there was signicant potential for growth in these areas. whereas wood products and wood furniture industries each
Chinas forestry industrial structure has undergone accounted for about 15 percent (China State Forestry
continuous improvements and upgrades since 2000. The Administration 2001). As the basic industry directly
improvement of the structure of Chinas forestry industry depends on forest resources, the sawn wood and chips
refers to the advanced development and rationalization of industry accounted for 7.9 percent, while the paper and pulp
the process (Yang and Nie 2011a). The primary industry industry accounted for 6.5 percent.
was the pillar of the forestry sector in 2000. From 2000 to Under the strategic guidance of the structure adjustment
2010, it developed slowly and stably, with an average of Chinas forestry industry, the development of the forestry
annual growth rate (AAGR) of 14 percent. On the other secondary industry garnered a large amount of support for
hand, the secondary industry developed rapidly, with an forestry technology and human resources investment; hence,
AAGR of 27.6 percent, and its annual industrial output the internal structure of the industry has gradually been
value reached RMB 1,187.7 billion in 2010. The gures improved (Wang 2011). Among the six manufacturing
indicate that the secondary industry has passed the primary categories of the forestry secondary industry, the paper and
and has become the largest part of Chinas forestry pulp production, which is technology and capital intensive,
economic development. The tertiary industry has the fastest has had the fastest development rate, and the AAGR of its
development rate, despite its relatively low output value in output value reached 45.8 percent. Until 2010, the output
the entire forestry industry. From 2000 to 2010, the annual value of the paper and pulp sector accounted for 24.6
output value increased at an AAGR of 31.3 percent and percent of the secondary industry output (Fig. 3), highlight-
reached US$200.7 billion. These changes have resulted in ing the important position of this technology-intensive
the proportions of industrial output value of the primary, sector after the adjustment of the industrial structure.
secondary, and tertiary sectors of Chinas forestry industry Chinas wood furniture industry is resource and labor-

FOREST PRODUCTS JOURNAL Vol. 62, No. 3 215


furniture manufacturing industry will play an important role
in the development of Chinas furniture industry (Deng et al.
2004). The development of Chinas wood furniture industry
should consider the sustainability of imported supply and
export marketing. The sustainability of imported supply can
be achieved by importing legal timber with Forest
Stewardship Council (FSC) certication, and the sustain-
ability of export marketing can be achieved through market
diversication, which can reduce the risks caused by
economic crisis.

Industrial cluster of Chinas furniture industry


Figure 3.The industrial output value of Chinas forestry
According to national statistics from 2010, the top ve
secondary industry in 2010.
regions of China with the largest furniture industry output
are Guangdong, Zhejiang, Fujian, and Shandong provinces,
and Shanghai. The furniture produced in these ve regions
accounted for about 81.2 percent of the countrys total
intensive. Owing to its mature technical support and low- furniture output (Table 2). Among these provinces,
cost labor resources, it developed rapidly, with the AAGR of Guangdong and Zhejiang produced 193.9 million and
the output value reaching 27 percent in the past 10 years. In 187.4 million furniture sets, respectively, accounting for
2010, the output value of the wood furniture industry about half of the national output.
accounted for 13.8 percent of the secondary industry output Based on national statistics for industrial output in 2010,
and played an important role in promoting forestry Chinas top ve provinces are Guangdong, Shandong,
economic development. To upgrade the industrial structure, Zhejiang, Liaoning, and Fujian (Fig. 4). The wood furniture
the Chinese government has to limit the speed at which the output of these provinces accounted for 76 percent of the
resource consumptionbased industry develops. Because the countrys total wood furniture output, and wood furniture
resource-intensive industry panel manufacturing and wood production in the top two provinces, Guangdong and
products industries developed relatively slowly, their Shandong, amounted to 140 million sets, which accounted
proportion of the output value declined slightly. Slowing for more than 50 percent of the national output.
the development of forest resource consumptionbased and Chinas furniture industry is mainly distributed in three
labor-dependent industries will be a long-term direction for large, economically developed core areas, namely, the Pearl
the future structure adjustment of the forestry industry River Delta (represented by Guangdong), the Yangtze River
(Yang and Nie 2011b). Delta (represented by Zhejiang), and Bohai Rim Region
(represented by Shandong). The formation of the three
Composition of Chinas furniture industry industrial cluster areas is affected by various factors, such as
According to Chinas National Bureau of Statistics, the local and national laws, resources, and trade, among others
countrys furniture industry is mainly divided into metal (Jin and Zhang 2003). In comparison, the development of
furniture, wood furniture, upholstered furniture, plastic the furniture industry in midwest China3 presently lags
furniture, glass furniture, and others (National Bureau of behind other areas. Since the reform and a more open
Statistics of China 2011a). The industrial output of Chinas economy in 1978, the Chinese government has promoted an
furniture industry has increased every year, and by 2010, it export-oriented strategy by encouraging foreign investment,
reached 770.3 million sets, 8.6 times the output in 2000.2 As allowing foreign investors to set up factories locally, and
the top three major furniture industries, the metal furniture, exchanging market for capital or technology. Because of its
wood furniture, and upholstered furniture manufacturing geographical advantages and industrial base, eastern China
industries developed very steadily, and in 2010, the has attracted a large amount of international investment.
proportions of their output value based on the total output The development of the furniture industry in the eastern
of furniture industry were 55.0, 33.8, and 6.1 percent, provinces was promoted, and subsequently the present
respectively (Table 1). The wood furniture industry relies on furniture industry cluster gradually formed.
the resource supply of renewable timber, and compared with During the period of nancial crisis in 2008, exports from
industries using nonrenewable raw material, its develop- eastern China declined severely due to the lack of demand in
ment has more environmentally friendly features. the United States and other developed countries. Conse-
Sustainable development is development that meets the quently the growth of domestic consumption has gained
needs of the present without compromising the ability of more attention. In recent years, Chinas economic policy has
future generations to meet their needs (World Commission gradually changed from being export led to being based on
on Environment and Development 1987). Under Chinas domestic demand (Dong and Zhang 2010). Because the
strategic guidance of sustainable development, the wood economy of midwest China was less developed than the
eastern provinces, the Chinese government formulated a
2
The units of measurement are based on the standard units of
3
quantity recommended by the World Customs Organization The central area of China includes eight provinces: Shanxi, Jilin,
(WCO). Furniture has no standard unit value. The quantity unit Heilongjiang, Anhui, Jiangxi, Henan, Hubei, and Hunan. Western
set in terms of mass, price value, ranges, and other information China includes 12 provinces and cities: Sichuan, Chongqing,
is determined by sellers and buyers according to the furniture Guizhou, Yunnan, Xizang, Shaanxi, Gansu, Qinghai, Ningxia,
material and usage. Xinjiang, Guangxi, and Inner Mongolia.

216 YANG ET AL.


Table 1.Output and share of Chinas furniture industry (2000 to 2010).a
Million sets for specific categories
Wood furniture Metal furniture Upholstered furniture Others
Furniture (million sets)
Year Output Output Share (%) Output Share (%) Output Share (%) Output Share (%)
2000 89.4 29.5 33.00 38.9 43.51 7.9 8.84 13.1 14.65
2001 115.5 36.7 31.77 49.3 42.68 8.5 7.36 21 18.18
2002 133 54.9 41.28 61.2 46.02 8.8 6.62 8.1 6.09
2003 171 65.6 38.36 89.2 52.16 8.1 4.74 8.1 4.74
2004 258.2 83.5 32.34 152.5 59.06 9.2 3.56 13 5.03
2005 339.9 113.2 33.30 172.5 50.75 14.4 4.24 39.8 11.71
2006 416.3 150.6 36.18 229.8 55.20 19.2 4.61 16.7 4.01
2007 484.8 174.7 36.04 256.7 52.95 26.6 5.49 26.8 5.53
2008 518.7 189.5 36.53 264.4 50.97 32.5 6.27 32.3 6.23
2009 608.1 205 33.71 333.7 54.88 36.8 6.05 32.6 5.36
2010 770.3 260.7 33.84 423.8 55.02 47.3 6.14 38.5 5.00
a
Data from Chinas National Bureau of Statistics (2011b).

strategy to develop the midwest in 2000. Industrial transfer such as low-cost labor, FSC-certied wood supply, and
is an important measure to implement the strategy. The improved labor productivity, could enhance the internation-
Chinese government has put forward a number of support al competitiveness of Chinas furniture industry in the future
policies for the industrial transfer from tax, nance, (David et al. 2008).
investment incentives, land use, and other factors. The
motive behind the industrial transfer to the midwest is the Major import countries of Chinas furniture
hope that the regions low-cost labor and resource Until 2010, the international market of Chinas furniture
advantages can lower production costs and produce greater had expanded to over 200 countries and regions (China
economic benets. Thus, the industry will gradually transfer State Forestry Administration 2011). The top 10 countries in
from the eastern coastal area to the midwest, and the the list accounted for 65 percent of Chinas total furniture
furniture industry may form a new cluster in the midwest exports. The United States relied heavily on Chinas
regions, perhaps in Henan or Sichuan provinces, in the furniture and was the largest importer of Chinas furniture
future (Pu 2011). products, with imports reaching US$5.8 billion in 2010 and
constituting more than 32 percent of Chinas total exports
Chinas Furniture Export Structure (Table 5). Japan and the United Kingdom were the other key
HS statistical description target markets for Chinas furniture. The export volume to
Furniture is categorized in the Harmonized System (HS) Japan increased by an average annual growth rate of 11
list of the United Nations Commodity Trade Statistics percent and exceeded US$1 billion in 2010, accounting for
Database (UN Comtrade database, http://comtrade.un.org/ 5.7 percent of the total exports of Chinese furniture.
db/; Table 3), which contains furniture (9403), metal Furniture exports to the United Kingdom also continued to
furniture (940310, 940320), wood furniture (940330, grow, with an annual growth rate of 25.8 percent. In
940340, 940350, 940360), plastic furniture (940370), and addition, Chinas furniture exports to Thailand increased by
bamboo rattan furniture (940380, 940381, 940389).4 nearly 67 times in the last 5 years.

Major furniture export countries


The UN Comtrade statistics show that world furniture
exports increased at an annual rate of 10 percent, and Table 2.Provincial rank of Chinas furniture production in
2010.a
reached US$66.0 billion in 2010. The top ve export
countries were China, Italy, Germany, Poland, and Vietnam Province Furniture (set) Proportion (%) Rank
(Table 4). From 2006 to 2010, Chinas furniture exports
Total 770.3
retained the top spot in the world, reaching US$18.0 billion
Guangdong 193.9 25.2 1
and accounting for 27.3 percent of global furniture exports. Zhejiang 187.4 24.3 2
Compared with Italy and Germany, which are the second Fujian 107.0 13.9 3
and third largest furniture exporters, respectively, and have Shandong 74.2 9.6 4
a 10 percent share of the worlds furniture exports, Chinas Shanghai 62.7 8.1 5
furniture industry developed much faster and captured Jiangsu 27.1 3.5 6
greater world attention. Numerous potential advantages, Henan 26.7 3.4 7
Liaoning 18.8 2.4 8
4 Sichuan 11.0 1.4 9
HS code is the abbreviation of International Convention on the Jiangxi 10.9 1.4 10
Harmonized Commodity Description and Coding System. HS
a
divides all international trade of goods into 22 categories and 98 Values are for all 32 (total) provinces and for the top 10 major provinces.
chapters. Data from Chinas National Bureau of Statistics (2011b).

FOREST PRODUCTS JOURNAL Vol. 62, No. 3 217


Figure 4.Cluster and distribution of Chinas wood furniture industry in 2010.

According to the ofcial 2010 statistics, Chinas major Chinas Wood Furniture Export
categories of exported furniture are wood furniture, metal Price Advantage
furniture, and bamboo rattan furniture, with a ratio of
Among the ve major import countries of Chinas wood
58:23:6. As the most important export category, wood
furniture (Table 7), the United States was the most
furniture exports reached US$10 billion, including mahog-
important country, with imports accounting for 39 percent
any and lacquered furniture (940360) (62%), bedroom wood
of Chinas total wood furniture exports in 2010. Kitchen
furniture (940350) (25%), kitchen wood furniture (940340)
(7%), and ofce wood furniture (940330) (6%). From an furniture imports in the United States accounted for 60
overall perspective, China has become an important middle percent of Chinas total kitchen furniture exports, with a
to upper-end furniture-producing country (Table 6). total of US$447.6 million, whereas the ofce furniture

Table 4.Major furniture export countries (2006 to 2010).a


Table 3.Definition of Harmonized System goods by type of
furniture.a Exports (million $)
Proportion
Code Description 2006 2007 2008 2009 2010 (%)
9403 Other furniture and parts thereof World 56,398.7 65,877.8 71,489.2 58,623.7 66,029.8
940310 Metal furniture to be used in offices China 9,719.9 11,811.5 13,737.7 13,654.5 18,040.8 27.30
940320 Other metal furniture Italy 7,118.9 8,681.0 9,315.1 6,824.1 7,043.4 10.70
940330 Wooden furniture to be used in offices Germany 5,518.3 6,776.6 7,688.3 6,602.3 6,639.5 10.10
940340 Wooden furniture to be used in the kitchen Poland 2,353.0 3,029.7 3,643.9 2,675.4 3,028.8 4.60
940350 Wooden furniture to be used in the bedroom Vietnam 1,299.3 1,647.4 1,841.6 1,739.7 3,021.7 4.60
940360 Other wooden furniture United
940370 Plastic furniture States 2,295.6 2,556.9 2,921.6 2,272.3 2,601.3 3.90
940380, 81, 89 Furniture of other materials, including cane, osier, Canada 3,517.6 3,301.2 2,874.4 1,799.9 1,992.5 3.00
bamboo, or similar materials; bamboo/rattan Malaysia 1,610.3 1,734.8 1,922.8 1,606.3 1,842.8 2.80
furniture Sweden 1,435.3 1,740.5 1,901.2 1,523.3 1,596.8 2.40
940390 Furniture parts nes France 1,741.1 2,053.1 2,235.2 1,779.4 1,430.1 2.20
a a
Data from the UN Comtrade database (http://comtrade.un.org/db/). International Trade Centre calculations based on the UN Comtrade statistics.

218 YANG ET AL.


Table 5.Major import countries of Chinas total furniture (2006 bedroom furniture, and mahogany and lacquered furniture
to 2010).a is given in Table 8.
Imports (million $) First, Chinese wood ofce furniture and kitchen furniture
Proportion (940330, 940340) have price advantages. The average unit
2006 2007 2008 2009 2010 (%) price of Chinas exported ofce furniture is US$40,
World 9,719.9 11,811.5 13,737.7 13,654.5 18,040.8 compared with the US$50 price of ofce furniture from
United States 4,555.1 5,251.1 5,386.7 4,685.2 5,861.9 32.5 Canada or Indonesia, giving China an existing price
Japan 716.2 780.1 949.0 962.1 1,030.9 5.7 advantage of 20 percent. The average unit price of Chinas
United exported kitchen furniture is about US$40, which has a 10
Kingdom 415.3 593.4 671.6 653.1 843.9 4.7
percent price advantage compared with Canada and
Thailand 9.3 17.0 39.7 114.6 629.6 3.5
Germany 233.5 329.7 410.5 458.8 607.1 3.4
Indonesia. The unit price of Chinas kitchen furniture
Canada 268.1 350.8 476.2 445.5 606.1 3.4 exported to the United States is no higher than the average
Singapore 40.6 84.2 118.9 680.9 601.2 3.3 price exported to the world. Meanwhile, the ofce furniture
Australia 263.3 361.2 518.8 486.3 589.7 3.3 price is higher than the world average unit price by 11.5
France 167.2 249.3 313.2 331.7 508.7 2.8 percent.
Indonesia 14.6 27.5 49.4 81.0 446.9 2.5 Second, compared with other categories of wood
a furniture, bedroom furniture (940350) has no price advan-
International Trade Centre calculations based on the UN Comtrade statistics.
tage. The average unit price of Chinas exported bedroom
furniture is about 10 percent higher than that of other
Table 6.Export structure of Chinas furniture in 2010.a countries. The average price of Chinas bedroom furniture
exported to the United States is $105, which is about 38
Export value
percent higher than the prices of bedroom furniture from
Description Code (US$ million) Proportion (%)
Canada and Indonesia.
Furniture 9403 18,040.8 Furthermore, as one of Chinas most important products,
Metal furniture 940310 265.4 23.2 mahogany and lacquered furniture (940360) has an obvious
940320 3,911.4
price advantage compared with the prices of other countries,
Wooden furniture 940330 699.7 58.5
940340 746.6
such as Canada and Indonesia. Under the forest certication
940350 2,598.3 mechanism, mahogany logging has been subject to strict
940360 6,511.7 control. Mahogany supply has become a key factor affecting
Plastic furniture 940370 449.7 2.5 the sustainable development of the mahogany furniture
Cane, osier, bamboo 940381 38.4 6.2 industry. Given the background of protection of interna-
furniture 940389 1,083.8 tional environment and rare plants (Jorge et al. 2008), the
Other furniture 940390 1,735.8 9.6 industrial development of mahogany and lacquered furniture
a
Data from the UN Comtrade database (http://comtrade.un.org/db/). could be subject to restrictions in the future.
Finally, China is facing strong competition from some
emerging forces. Malaysia currently prioritizes its wood
imports accounted for 44 percent of total exports, with a furniture industry. Driven by an export-oriented policy, it
has become the leader in the Southeast Asian market (Boon-
total of US$307 million. Other major importing countries
Kwee and Thiruchelvam 2012). Malaysia has the lowest
for Chinas wood furniture were Japan, the United
export prices of all the furniture products already men-
Kingdom, Canada, and Australia. tioned. A gap in the price advantages of exported wood
It is necessary to analyze the price advantage of Chinas furniture exists between China and Malaysia. In the long
exported wood furniture in the international competition. run, given the rapid development of the furniture industry,
Considering the United States as the worlds most important countries with rich forest resources such as Malaysia and
furniture importer (Murillo 2007), we conducted a compar- Indonesia may overtake Chinas furniture exports. To
ison analysis of the furniture prices from the major ensure the stable development of the wood furniture
exporters, namely, China, Canada, Indonesia, and Malaysia. industry, China should strive to improve not only labor
Based on the HS standard, information on the average unit productivity, but also the industrial competitiveness-of-scale
prices of imported ofce furniture, kitchen furniture, economic advantage.

Table 7.Major import countries of Chinas wood furniture in 2010.a

USA Japan United Kingdom Canada Australia


World US$
Code million US$ million % US$ million % US$ million % US$ million % US$ million %
940330 699.7 307.2 43.9 37.9 5.4 11.9 1.7 23.9 3.4 17.4 2.5
940340 746.6 447.6 59.9 29.7 3.9 29.4 3.9 30.5 4.1 32.7 4.4
940350 2,598.3 799.6 30.7 163.1 6.3 164 6.3 67.3 2.6 132.4 5.1
940360 6,511.7 1,844.8 28.3 391.4 6.0 249 3.8 216 3.3 149.3 2.3
Total 10,556.3 3,399.2 32.0 622.1 6.0 454.3 4.0 337.7 3.0 331.8 3.0
a
Data from the UN Comtrade database (http://comtrade.un.org/db/).

FOREST PRODUCTS JOURNAL Vol. 62, No. 3 219


Table 8.Unit price of Chinas exported wood furniture in 2010.a
Unit value ($/set)
Exporters
Code Description Importers China Canada Indonesia Malaysia
940330 Office furniture World 40.91 50.80 49.80 26.54
United States 45.60 50.89 50.79 18.97
940340 Kitchen furniture World 40.41 47.40 44.40 33.03
United States 40.37 47.40 45.19 33.41
940350 Bedroom furniture World 84.08 76.19 77.40 54.18
United States 104.91 76.19 75.89 45.94
940360 Mahogany, lacquered furniture World 47.57 68.02 67.19 27.57
United States 43.35 68.02 68.02 27.35
a
Data from the UN Comtrade database (http://comtrade.un.org/db/).

Summary and Conclusions The international comparison results show that Chinas
Chinas forestry secondary industry has become the pillar exported furniture has no price or resource advantages
of the forestry economy, and the furniture manufacturing compared with countries with rich forest resources.
sector has an important position in the forestry secondary Moreover, Chinas furniture industry is facing strong
industry. Chinas implementation of an export-led strategy competition from Malaysia and other emerging processing
has greatly promoted rapid development of its furniture countries.
industry. Through 30 years of structure adjustment and
technology accumulation, China has become a major Acknowledgments
furniture producer and exporter. Chinas furniture manu-
facturing industry is mainly distributed in three large This work was funded by the Priority Academic Program
economically developed core areas, namely, the Pearl River Development (PAPD) of Jiangsu Higher Education Institu-
Delta, the Yangtze River Delta, and the Bohai Rim Region; tions, supported by the National Social Science Foundation
meanwhile, the development of the furniture industry in of China (10CJY026). Financial support from Kreditanstalt
midwest China presently lags behind other areas. With fur Wiederaufbau (KfW) is also gratefully acknowledged, as
Chinas economic policy changing from being export are valuable suggestions and comments from two anony-
oriented to being led by domestic demand, the industry in mous reviewers. Any remaining errors reside solely with the
the eastern coastal areas faces a shift to the midwest. Due to authors.
the implementation of the strategy to develop the midwest,
as well as preferential policies to foster industrial transfer to
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Copyright of Forest Products Journal is the property of Forest Products Society and its content may not be
copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written
permission. However, users may print, download, or email articles for individual use.

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