It has been reported that Jia Qingwen, Chairman of China’s Furniture Association, was interviewed by media and talked about achievements and issues in China’s furniture industry during Tenth Five Year Plan period and the future during Eleventh Five Year Plan period.

Jia indicated that China’s furniture industry had developed rapidly during Tenth Five Year Plan period and a full set of industry system had been basically established. The total output value of China’s furniture industry in 2005 rose 27% to 340 billion yuan, 2.83 times as much as the year 2000. The annual average rate of its growth exceeds 20% within 5 years. The export value of furniture in 2005 grew 32.8% to $13.5 billion, 2.93 times as much as the year 2000. Viewed from regional development, the growth of exports in East China is fastest. The furniture exports in this region in 2005 had made up nearly 44% of the national total. In addition, the furniture exports has increased rapidly in the region around Bohai Sea, in the Northeast and western Sichuan Province.

In terms of furniture importing, the value of furniture imports did not rise but fell in 2005 although China has regulated tariff duty to zero. For example, the value of furniture imports from January to October was only $549 million, a year on year decrease of 13.4%.

Jia concluded that the following achievements have been made in China’s furniture industry during Tenth Five Year Plan.
 The industry scale is getting bigger and bigger. A broad and extensive set of industry system has been established with more advanced equipments which have laid a solid foundation for the development of furniture industry during Eleventh Five Year Plan period.
 The quality of furniture has been improved significantly. The middle and high grade furniture can be manufactured. Some dominant brands have been created. There are five national famous brands in China.
 The level of furniture designing has been improved. A lot of young furniture designers have been traind.
 Eight feature regions and mature furniture industry zones have been formed which promote the development of furniture industry.
 The level of management has been improved markedly. Family style enterprises begin to be transformed to modern enterprises, creating a lot of professional managers in furniture industry.
 Furniture exposition industry is booming. The influence of furniture expositions in Shanghai and Guangzhou have expanded to the whole globe.
 Foreign traders have taken part in the furniture expositions actively. China is becoming an international procurement center of furniture.
 The circulation industry has updated and both its scale and level is becoming higher and higher which provide a better channel for enterprises.

Jia Qingwen identified that some issues occur while furniture industry has developed rapidly. These issues are:
  The expansion of production capacity is too fast. The middle and lower grade furniture are superfluous. The competition in furniture industry is too strong.
  The productivity of labor is lower in China, making up 10% or even 5% of developed countries. The management of the whole furniture industry is extensive. There are a large gap between China and developed countries in terms of design and technical level.
  The furniture cities are blindly built. The real estate developers even speculate in land.
  The regional development of the furniture industry is uneven. The level of furniture industry in undeveloped regions is lower. There are severe imitation and copy in furniture manufacturing.

Jia Qingwen indicated that China’s furniture industry will enter a golden stage in the near 5 to 10 years. China’s furniture industry had expanded during Tenth Five Year Plan period. The quality of China’s furniture industry will be improved during Eleventh Five Year period. Its goal during this period is that both the output value and exports of furniture will be double twice on the basis of saving resources. Jia predicted that there is no problem to realize this goal if keeping an annual average growth rate of 15%.

Jia concluded that the following measures should be taken in order to achieve above goal.
  innovation in furniture industry should be strengthened, especially design innovation. The high level designers should be trained.
  The innovative science and technology will be needed. The traditional furniture industry should be altered using new technology, new equipments and new materials.
  Both innovative management and circulation will be needed.
  The furniture industry needs to be updated.