Market Overview

When FII was launched in 2003, China represented just over one percent of BC’s total exports of softwood lumber products. Since then, the development of the Chinese market for BC wood products has been a priority for the industry. Today, China is BC’s second-largest market for commodity lumber by volume, demonstrating the growth and importance of the Chinese market for BC forest products.

Photo: Nanchang Lotus Book Store, Hubei province | Credit: JinagXi Guojin Green Building Technology Company

Key Stats

0

%
of all BC forest product exports go to China (on average over the past 5 years)

0

%
of BC's softwood lumber exports go to China (on average over the past 5 years)

0

+
codes and standards favourable to wood construction have been advanced since market development efforts began in China

Why China?

  • A large, growing economy
  • Increasing reliance on imported lumber and wood products
  • Strong demand for housing
  • Broad interest in green building technology
  • The shift towards prefabrication that uses advanced wood systems
Photo: Canadian delegates visit Rugao factory demonstration of Shanghai Electric Matechstone Engineering Group (MTS), Jinagsu province | Credit: Canada Wood China

Market Priorities

  • Position wood construction in high priority segments such as cultural buildings, tourism, wellness and elderly care facilities, hybrid construction (wood mixed with concrete/steel) and mid-rise and taller wood construction
  • Increase the use of BC wood in China’s growing wood in manufacturing (WIM) segment
  • Position wood in response to new policies of the Chinese government to encourage low carbon, energy-efficient and prefabricated construction in China
Photo: Hemlock furniture manufactured by Foshan Yiyuan, Guangdong province | Credit: Canada Wood China

Strategic Approach

FII and the Canada Wood Group have worked together since 2003 to develop and grow the market share for BC wood products in China. The market strategy concentrates on higher-value market segments, where product differentiation provides a comparative advantage for BC’s wood products. Activities focus on increasing the value of wood sold, growing wood’s acceptance in construction, and positioning Canadian wood products as high-quality, environmentally friendly and sustainably sourced.

Photo: Xiawei Bhen Boat Rooms on the Fuchun River | Credit: Canada Wood China.

Featured Projects

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Government relations— advancing mutual low-carbon priorities

FII China recognizes the importance of maintaining relationships with government stakeholders to influence wood’s role in policies and priorities related to energy efficiency, prefabrication and green construction. While maintaining national-level involvement in areas such as building codes and environmental policy, there is also an emphasis on engagement with local jurisdictions that must develop and implement the strategies to show measurable progress towards national targets.

With China’s urbanization policy now focused on the sustainable development of smaller and mid-sized cities, a growing demand for mid-rise buildings and low-carbon solutions is creating new opportunities for wood construction. Showing high-potential municipalities and targeted provincial-level agencies and organizations how to meet low-carbon construction policy objectives through wood use is a key focus of FII China. This approach requires leveraging the credibility which FII has built over the years through a range of initiatives, and an ability to demonstrate relevance to local policy targets, but pays off through expanded wood use and recognition of B.C.’s sustainable wood products.

Guangzhou Forum | Photo: FII China

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Projects as a showcase for wood design potential

Demonstration projects are used to showcase the possibilities for wood construction in China. Through advanced design and engineering techniques, signature projects can show, in the most realistic possible way, that wood is equal, if not superior to other building systems.

Initially, these projects were sponsored by Canada Wood’s technical program. As Chinese developers and governments gained confidence and expertise in building with wood, they began incorporating advanced wood techniques and mass timber into their own commercially led signature projects, such as showcase homes in housing developments and conference centres.

While no longer needing to initiate or lead demonstration work in China, Canada Wood now provides technical assistance for many commercially developed projects. This support helps with complex engineering and regulatory hurdles, and promotes the many advantages of B.C. wood products and wood construction techniques. This growing confidence in using wood is one of the most significant accomplishments of the market development program in China—evidenced by high-level code changes such as an update in 2017 to allow for 5-storey wood buildings.

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Guangyang Island International Convention Center | Photos: Canada Wood

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Canada Wood promotes hemlock at iconic furniture exhibition

On July 23, 2022, Canada Wood China hosted a pavilion promoting Canadian hemlock at the 47th International Famous Furniture Fair (IFFF) in Dongguan, one of the most important international brand exhibitions for China’s furniture industry. Visitors were invited to experience the charm and natural feel of Canadian hemlock while seeing examples of furniture produced through the Canadian wood manufacturing trial program. Over the course of the five-day exhibition, the Canadian hemlock pavilion welcomed over 3,500 visitors and generated close to 100 business leads from manufacturers and designers interested in collaboration.

Canada Wood’s “Canadian hemlock” marketing campaign promotes hemlock to China’s furniture manufacturers and designers as the best choice for the demographic of younger families looking to purchase moderately priced solid wood furniture as an upgrade from pressed board and lesser-quality home products. As a major component of this campaign, the 1st Sino-Canadian Solid Wood Furniture Design Competition was launched in June 2022. Organized by Canada Wood China in partnership with the Nanjing Forestry University (NFU) College of Furnishings and Industrial Design, the competition was supported by the Consulate General of Canada in Shanghai, the Shanghai Wood Industry Association, the Fujian Custom Home Furnishing Industry Association, and the Interni Design Journal.

With the theme of “Green Forests and Vibrant Designs,” the design competition invited students and teachers to unleash their creative talent using Canadian hemlock, a species that combines versatility and durability with a natural aesthetic. The competition received 131 design submissions, with a rich blend of innovative concepts that showcase the possibilities of hemlock in furniture design. This offers a platform to raise awareness of Canadian hemlock and help furniture manufacturers to understand the possibilities for new products featuring sustainable wood materials.

First Prize design of Sino-Canadian Solid Wood Furniture Design Competition | Photo: Wei Yumeng, Nanjing Forestry University

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Addressing pinewood nematode concerns

Depending on the issue, efforts to overcome a barrier can take several years; Chinese concerns with the pinewood nematode (PWN) are a case in point. PWN is highly destructive of coniferous forests and Chinese officials were worried that imported logs or lumber could carry PWN throughout the Chinese countryside. Based on these concerns, tight restrictions on lumber imports from Canada, and six other countries, were introduced in 2022. Ongoing engagement with officials has helped to streamline the entry of B.C. softwood into China, with work continuing to unplug other bottlenecks.

Through continual monitoring and response to trade and other barriers, these efforts help ensure B.C. wood products have access to the Chinese market.

Photo: Canada Wood China