Market Overview

Since 2003, FII and the Canada Wood Group have worked together in China to create a market for wood construction and grow the market share for BC wood products. Exports have grown from a very low level, rising to become one of the “big three” export markets for BC forest products (alongside the U.S. and Japan).

With wood construction now taking hold commercially, market development efforts are focused on leveraging China’s carbon reduction and green building priorities and positioning BC’s sustainable wood products in emerging segments.

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

Key Stats

0

%
of all BC forest product exports went to China in 2025

0

nd
largest market for BC forest products by value

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
  • Broad interest in green building technology
  • The shift towards prefabrication that uses advanced wood systems
Photo: Jiuzhaigou National Park Entrance | Credit: Crown Homes Builder

Market Priorities

  • Focus on government relations and relationship building with key stakeholders to expand opportunities for higher-value BC wood products.
  • Position wood in response to new policies of the Chinese government to encourage low carbon, energy-efficient and prefabricated construction in China
  • 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
Photo: Shanghai Jiashan Business Service Centre | 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: Guangyang Island International Convention Center | Credit: Canada Wood

Featured Projects

Delegates tour an exhibition on construction and building development, viewing displays and presentation materials related to building projects and wood construction.

Deepening partnerships to build support for wood

FII is strengthening long-term relationships with national and provincial authorities to position wood as a practical and scalable solution that supports China’s low-carbon and green building goals.

Renewed MOU creates new pathways for wood construction

Canada-China co-operation on wood construction is anchored by a tri-party Memorandum of Understanding (MOU) between Natural Resources Canada, the British Columbia Ministry of Forests, and China’s Ministry of Housing and Urban-Rural Development (MOHURD) that was first signed in 2010.

Under the renewed MOU signed in January 2026, FII China and Canada Wood will lead policy and technical exchanges on embodied carbon accounting, procurement levers for low-carbon materials, and regulatory frameworks for tall and complex wood and hybrid buildings. This next phase of co-operation will also prioritize market readiness support through technical guidance, training and compliance pathways for engineered wood systems.

Since 2010, FII China and Canada Wood have worked with MOHURD—the central authority responsible for construction policy, codes, standards and market regulation—to align timber construction with China’s climate and modernization goals. Together, they have contributed to more than 125 codes, standards and technical practices that support the broader use of wood in China’s construction sector.

Photo: Minister of Energy and Natural Resources Tim Hodgson and MOHURD Minister Ni Hong at the Better Housing Exhibition, where they toured the show floor following the signing of the renewed MOU. The Government of British Columbia represented by Minister of Forests Ravi Parmar is a signatory to the MOU.

An equestrian centre featuring an illuminated mass timber roof structure with exposed wood beams and repeating triangular forms above spectator seating.

Glulam takes centre stage in landmark buildings

Wood has scaled up in a big way. No longer limited to niche projects, glulam now features in some of China’s most visually striking buildings. Since 2010, more than 460 signature timber projects have been completed across 30 provinces. Canada Wood China has helped enable this growth, supporting building code development, showcasing demonstration projects, advancing glue-laminated timber certification, and training local engineers.

Although Canadian Douglas-fir has emerged as the preferred glulam species, Canada Wood is expanding its focus to position western hemlock for broader use through research, standards development and new demonstration projects.

Photo: Shenzhen Guangming International Equestrian Centre | Credit: Canada Wood

Attendees seated in a conference hall listening to a speaker at a large international building industry forum, with presentation screens displaying multilingual content.

High-level engagement and co-ordinated action

China’s government plays a central role in shaping the national economy by directing industry regulations, overseeing key industry and construction associations and technical bodies, and managing the state-owned enterprises that dominate the construction sector.
National departments set overall construction and environmental policy, while local jurisdictions develop action plans and implementation strategies to achieve these policy objectives.

Within this context, advancing wood use requires active engagement with both national and regional authorities to credibly demonstrate how wood-based solutions meet national and local construction and sustainability goals. FII China has built this credibility for over 20 years and has a strong reputation for its expertise, flexibility and ability to work collaboratively with governments to advance shared goals.

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Photo credit: Canada Wood

Reducing barriers to BC wood sales

Addressing phytosanitary standards is an important part of the China market development program, as barriers or delays can seriously hinder the competitiveness of BC wood products.

A case in point is the issue of pinewood nematode (PWN)—a parasitic worm that causes the disease pine wilt. Citing worries about imported wood carrying PWN that could then infect local forests, China introduced restrictions on softwood lumber imports from Canada and five other nations in 2022. While this did not ban Canadian imports, it added substantial time and cost to the delivery of goods, reducing the competitiveness of BC wood products.

FII China has been involved in ongoing engagement with Chinese officials, to reassure them that Canadian quality control standards—including heat treatment of S-P-F shipped to China—can deal with the PWN.

In 2024 this included a trip to BC by Chinese officials to review these approaches. The officials concluded that the Canadian heat treating approach has the potential to set a global standard in treatment and provide the basis for reconsidering import restrictions on Canadian wood products.

These findings bring the issue closer to resolution, a situation that FII China will continue working on until the issue is resolved.

Photo: FII China