Present Forest Industry Policy and Trend in China.

Chinese government encourages people to plant trees and devotes to improve ecological environment and rational utilization, and develops import and export of forest products. In 2002, nationwide forestation area is up to 7.47 million hectares.
In the coming years, China will implement six large programs for forest industry development.
1. Natural Forest Protection Program. China has announced logging bans for merchandise in the upper reaches of the Yangtze River and the upper and middle reaches of the Yellow River. The output of timber from North-East of China and Nei Mongol forestry will be reduced in a big margin. And other natural forest resources will be protected at the same time.
2. Grain for Green Program. China will take a series of measures as converting steep cultivated land to forest, closing hills to afforest, supplying food to relief and conducting individual contractor. The project aims to accelerate restoring hillside agricultural land to forest in the area of the Yangtze River and Yellow River and mainly to solve the problem of soil erosion in this region.
3. Forestry Protection Construction Program in the North Region and the Yangtze River Valley. This program includes the forth phase of forest protection project in the North regions, the second phase in the both sides of the Yangtze River, the second phase along the coast and in both sides of Zhujiang River, and also includes the second phase of landscaping projects by Tai Hang Mountain as well as forestation project in the plain.
4. Prevent & Control Sand Program around Beijing District. The project aims to solve sand storm problem that is harm to Beijing.
5. Wild Animal & Plant Protection and Natural Protection Region Construction Program. The project aims to store genes of wild animals and plants, to protect its' biological diversity, to keep more regions naturally, and to make damp soil protection.
6. Constructing Forest Industry Bases Program to Accelerate Productivity of Timber Products in the Key Forest Region. China plans to afforest 13.326 million hectares in 18 provinces with invest of 70 billion Yuan RMB. The project aims to supply the raw materials to the timber production.
Chinese government will plan to afforest 76 million hectares with 50 billion Yuan RMB capital investment per year in six large programs. Through these projects, China will improve ecological environment, meanwhile promote the wood production of which logging natural forest will transform into felling artificial one.
Especially the implementation of forest bases construction program, Chinese government encourages people to adjust the planting structure, and to accelerate productivity of timber products. At the same time the government advocates wood working companies to build up bases for industrial plant raw materials supplies, and to implement the business of wood-board and timber-paper in a line.
(Picture is artificial timber production base)
Chinese government also encourages the development of non-wood resources application such as bamboo cultivating and processing. Bamboo has many advantages of growing fast, short cycle in cultivation and so on. It not only has a wide prospect but also fits to the environment protection and posses the characteristics of sustainable development with great potential. The nationwide bamboo area has got to 4.77 million hectares. The bamboo processing industry develops rapidly for instead of wood in some way. It has flourishing situation with bright future.
(Picture is bamboo production base)
Chinese government implements the management of limiting logging in the forest. According to the principle of wood consumption less than growth, the maximum of logging quota, which can't be broken has been formulated. The government makes a wood production plan in each year, and divides ecological public welfare forest and merchandise forest according to different places and purpose. But commercial logging in public welfare forest is forbiddened. At present, China is considering the policy that the owner will involve in the management of artificial forest for merchandise based on demands.