China's foreign trade turns to the integration of investment "logging, processing and trade"

In September this year, at the Forum on Promoting Responsible Timber Trade and Investment among countries along the Belt and Road, Mr. Chen Yong from the Chinese Academy of Forestry and Mr. Tang Zhenzhong, Director of the Information Center of the China Wood and Wood Products Distribution Association (CTWPDA), gave their views on China's timber trade along the Belt and Road.

There are 65 countries along the Belt and Road, which account for 30.5% of the world's total forest area. Timber trade data from 2013 to 2021 show that the trade volume of forest products between China and countries along the Belt and Road increased from $48 billion to $72 billion, including 30 million cubic meters of logs and sawn timber to 41 million cubic meters.

China, as a major timber consumer in the world, has been importing about 56% of its timber from other countries every year since it banned the exploitation of natural forests in 2017. Russia's annual supply accounts for about 30% of China's imported timber market.

From 2013 to 2020, more than 500 Chinese forestry companies invested in 19 countries along the Belt and Road, including Russia, the Association of Southeast Asian Nations, Uzbekistan and Kazakhstan, with a total of about 60 million hectares of forest land, in order to secure a stable and sufficient supply of timber.

However, in recent years, affected by multiple factors such as global economic expansion, international politics and epidemic, China's timber trade market is not stable. In view of the global timber market environment, China's current foreign forestry investment is no longer limited to timber supply, and is ready to develop the integration of "logging, processing and trade". Integrated forestry trade can reduce costs and risks to a certain extent, not only in overseas markets. As early as 2021, Xuzhou expressed its hope to promote the construction of international land port and develop the timber distribution center project, so as to realize the integrated development of "manufacturing, trade and transportation" of the wood industry. At the forum, the two experts also proposed to speed up the establishment of forest resource cooperation zones that integrate timber harvesting, processing, logistics and services in countries along the Belt and Road.

In addition to the need for adequate raw materials and technology to develop an integrated forestry trade, transport is also important. In recent years, the "Belt and Road" transport infrastructure construction has made some achievements. Experts say that under ideal conditions, the trade transportation time of countries along the Belt and Road can be reduced by up to 12%, and the trade volume can increase by 2.8% to 9.7%. It is expected that in the coming period, China will restore the vitality of the market through the integration of "logging, processing and trade".