It has been reported that both imports and exports of China’s forest products increased in 2005. The value of exports rose markedly compared with that last year. China's trade in the main forest products achieved a favorable balance in 2005 for the first time since 1949.

Statistics from the General Administration of Customs show that the total value of foreign trade in national forest products was $38.318 billion, up 18.51 percent from 2004. This accounted for 43 percent of the forestry industry’s total output. Exports broke a record of more than $20 billion for the first time, up 29.36 percent, and imports totaled US$17.627 billion, up 7.87 percent, creating a favorable trade balance of $3.064 billion.

The local forestry experts think that a continuous and rapid increase in the foreign trade of forest products has not only enabled Chinese products to become more competitive internationally, but also help to upgrade forestry industry, promote the comprehensive development of forestry where it has become one of the most important economic growth points. Export of forest products has become a major revenue source for some local governments, and help boost farmers' income and created jobs. Meanwhile, with the growth of output, export volume, and foreign exchange profits, the increasing demands for raw materials have stimulated enthusiasms of local people for planting trees, thus promoting agricultural structural adjustment.

According to statistics, in terms of export, wooden furniture still ranked first in terms of earning foreign exchange, with continuous and rapid growth. Paper, paperboard, wood products, plywood, and rattan-straw-reed products ranked second, third, fourth and fifth respectively. The exports of plywood and fiberboard continued to keep a high growth and had international competition power. However, the exports of veneer and chipboard continued to decline.

With regards to imports, the total log imports reached 29.368 million cubic meters valued at $3.244 billion, up 11.6 percent in volume and 15.6% percent in value. The sawnwood imports stood at 6.0541 million cubic meters, keeping the balance with the previous year although the cost rose 9.3 percent. The imports of wood-based panel changed a great deal, with the import volume of plywood, fiberboard, and particle board decreasing to varying degrees. Wood pulp, waste paper, paper, paperboard, and paper products remained the largest imported items, continuously maintaining rapid growth and being worth US$11.004 billion, a year on year rise of 6.7 percent. The imports of edible fruit and nut products increased 3.7 percent.

Experts said that, with China's continuous huge raw materials demand for wood-based panel and wood pulp, the imports of wood chips continued to increase significantly, while exports continuously decreased. Imports of paper, paperboard and paper products also showed signs of decline, while exports of paper and paperboard rose 37.1% from 2004, exports of paper products grew 16.1% from 2004. The charcoal trade showed high imports and low exports due to domestic ban of charcoal exporting.

The local experts analyze that the share of China’s forest products in international markets has been expanding, but disputes over alleged dumping, illegal logging, and illegal trade frequently occur, as have technological trade measures involving standards, certification and quarantine. Domestic forestry enterprises face such problems as small production scale, slow progress in technological innovation, few famous brand products, and weak adaptability to international trade. These matters await further policy guidance and support.