How Chinese forestry is coping with the challenges of global economic downturn

摘要

China's domestic economic stimulus package aims to encourage consumption of wood and wood products; raise investment in afforestation, reforestation and protection of natural forests; and support forest enterprise through reduced taxes and other benefits. The global financial crisis is creating severe challenges for Chinese forestry, and especially for small and medium-sized wood-processing enterprises. Exports of forest products, domestic demand for forest products and timber prices have dropped sharply since 2008. Some small and medium-sized forest enterprises have closed down (SFA, 2008a).