According to the State Forestry Administration, the performance of China’s forest industry showed gains during the first half of 2009. Statistical data showed total output value of forestry industry amounted to RMB726.6 billion yuan in the first six months, which is roughly the same as last year. The output of timber and wood-based panels reached 29.5 million m³ and 59.57 million m³ respectively. The paper making industry also showed signs of recovery. The output of machine-made paper amounted to 43.10 million tons in the first six months and reached a peak of 8.52 million tons in June alone. According to professionals, these achievements resulted mainly from the following measures taken by governments:

Firstly, the guidance and support for industry development strengthened. For instance, for products produced with timber residues, the policy of refunding upon payment of VAT has been established; export tax rebate rates for 63 forest products have been increased. Secondly, local authorities sped up incentives to encourage development of industrial structures. Some new industries, such as biomass energy, biological medicine production, forest food, forest tourism and biomass material, continued to increase. Thirdly, the import and export of major forest products showed signs of a gradual increase.

New guidelines suggests how to manage international forest resources

The Guideline of sustainable management and use of overseas forest for Chinese enterprises was jointly issued recently by the State Forestry Administration and the Ministry of Commerce. According to the Guidelines, Chinese enterprises must strictly conduct their business within the approved site, area, quantity, variety and scope of business and shall not exceed the scope of business.

Such activities as project contraction, labor services cooperation and purchase of forest products are expected to be in accordance with the related bilateral laws and regulations. Wood processing projects and timber transportation should be in line with industry policies of
both China and the host country. The system of public notification and consultation before logging should be established.

The Guidelines emphasizes that Chinese enterprises must fully consider the interests of local people when forest management activities are carried out, and do not threaten and weaken the local people’s rights of ownership and use of forest resources. The Chinese enterprises are also requested to participate in local activities of public welfare and provide local people with the opportunities of employment and training.