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THE WOOD PRODUCTION POTENTIAL IN CHINA

BY

Xiaotan Zhu

A THESIS

Submitted to
Michigan State University
in partial fulfillment of the requirements
for the degree of

MASTER OF SCIENCE
Department of Forestry

1985

ABSTRACT
THE WOOD PRODUCTION POTENTIAL IN CHINA
BY
Xiaotan Zhu
This paper gives a general picture of forestry development

in China before 1985 and projects wood production in the future-
Four key factors: forestry policy, plantation efforts, timber
demand, and timber supply are studied in this paper. New
changes in government forestry policy will have significant
impact on wood production during the coming decades. The
plantation efforts in the past 34 years (1949-1983) resulted
in 38 million hectares of plantation establishment. ‘Wood
production was 52 million cubic meters in 1983. China‘s
timber consumption will be 101 million cubic meters by year
2000 if 4 percent annual growth in timber consumption is
obtained. In contrast to demand, the projected physical
timber supply would be 295 million cubic meters by year
2000. If the government begins to make improvements in
management, wood production, wood utilization, marketing and

planting quality, China may become a big exporter of timber

products.

ACKNOWLEDGEMENTS

I wish to express my sincere appreciation to all the
peOple who helped me in the preparation of this thesis. I
am primarily indebted to my principal advisor-Dr. James
Hanover—who made the great effort not only to create the
opportunity for me to study at MSU, but also to make my stay
at MSU so pleasant and unforgettable. I would like to take
this opportunity to express my heartfelt thanks to Mrs.
Hanover who gave thoughtful consideration to my accommodations
on my arrival. My family and I will always be grateful
for their kindness.

Thanks should also be given to Dr. Lee James who helped
me generate, focus and refine the ideas presented in this
thesis. He and Dr. Paul Nickel carefully read the draft and
their detailed comments resulted in a significantly improved
final version.

I am deeply grateful to Betty Holmer-Heckman and Dr.
Michal Gold who painstakingly edited this thesis for me.
Their excellent assistance significantly improved the
readability and clarity of the thesis.

I am especially thankful to Dr. Cherukat Chandrasekharan
and my friends in both the Chinese Ministry of Forestry and

the Chinese Academy of Forestry, who sent me necessary

ii

information for writing this paper. My study could not have
been completed without their help.
Finally, I wish to thank Dr. Raymond Millem, Dr. John

Heckman, Mike<TConnor and all other individuals who helped

me during my study at MSU.

iii

CHAPTER

CHAPTER

CHAPTER

CHAPTER

CHAPTER

CHAPTER

CHAPTER

I

II

III

IV

VI

TABLE OE CONTENTS
PAGE
INTRODUCTION...0.0.0.0000...0.0.0.000...0.01

Forest classification

Forestry in the national economy
Afforestation

Timber products industry

Forest protection

Research

Education

National reserves

Goals and objectives
FORESTRY POLICY...OOOOOOOOOOOOOOOOOOOO0.0.010

Leftist influence
Changes in forestry policy

PLANTATIONSOOOOOOOOOOOOO0.0.0.000000000000015

General outlook

Planting on open lands
Species used in planting
Areas planted by species
Shelterbelts

PROJECTED TIMBER YIELDS FROM PLANTATIONS...25

Timber yields by species

Projected timber yields from plantings
established on areas harvested

Projected timber yields from plantings

on open lands

Projected timber yields from all plantings

TIMBER DEMANDOOOOOOOOOOO0.0.00.00000000000033

Current consumption
Future demand

TIMBER SUPPLYOOOOOO...0.0.0.00000000000000037
Forest resources

Forest-products industries
Chemical products

iv

CHAPTER VII -FUELWOODOOOOOOOOOOOOOOOOOOOOOOOOOO0.0.0....46

CHAPTER VIII- IMPROVEMENTS NEEDED........................49

Efficiency improvement

Attract foreign investment

Give full play to China's advantages
Salesmen and businessmen needed
Improve the quality of planting

CHAPTER IX- CONCLUSION.O.OOOOOOOOOOOOOOOOOOOOOOOO00.00.54

LITERATURE CITEDOCOOOOOOOOOOOOOOOOO0.0.0.000000000000000057

TABLE

Table

Table

Table

Table

Table

Table

Table

Table

LIST pg TABLES

PAGE

Successful plantings on open lands,.............l7
by function, 1949-83

Tree plantations established and................21

surviving on open lands, by species
1949—83

Estimated percentage of timber species..........23
planted on open lands

Volume yields of major tree species.............26
planted in China

Future timber yields expected from..............28

plantings established on areas
harvested from 1950 to 1979

Projected timber yields from....................30
plantations established and

surviving on open lands,

by species, 1984-2023

The projected timber yields from................32
all plantings (1984-2023)

Rural household energy consumption..............47
in China by type of fuel

vi

CHAPTER I

INTRODUCTION

The most populated country in the world, China1 has
over one billion people and occupiesfifi million square
kilometers of territory. Extending approximately 5,000
kilometers from east to west, 5,500 kilometers from south to
north, with its southern border descending from west to

east, China shares 28,072 kilometers of borders with 12

countries.

China's forest now covers an aggregate area of 115
million hectares, amounting to 9 billion cubic meters of
stocking volume (Ministry of Forestry,l984). BY its
extremely diverse geographic features, China has more than
7,000 species of woody plants, of which more than 2,800
species are arboreal. Of the 30 genera of Pinaceae and
Taxodiaceae in the world, 26 genera (about 200 species) are
found in China. In addition, 260 genera of broad-leaf trees
(containing 2,000 species) are located within the borders

of China. Many species are unique to China, including

 

1 All forestry data in this dissertation expect forest land
area and timber volume apply to mainland China only.

Gingko biloba, Metasequoia glyptostroboides, Glyptostrobus

 

pensilis, Cathaya argyronhylla, and Cunninghamia lanceolata.

 

In addition, there are nearly 300 bamboo species in China (11).

five

Forest Classification

China's forest can be divided into six forest belts:

1.

A coniferous belt in the frigid and temperate zone

(Da Xinganling).

A coniferous and deciduous mixed forest belt in the
temperate zone (Xiao Xinganling, Mt.Chang Beishan).

A deciduous forest belt in the warm temperate zone
(northern China, Liaodong Peninsula, Shandong Peninsula).
Evergreen and deciduous forest in the north subtropical
zone HflmaHanjiang River valley, the middle and lower
reaches of Yangtze River).

Evergreen broad leaf forest belt of the subtropical
zone (southern China).

Monsoon forest and rain forest belt of the south-
sub-tropical and tropical zone (Hainan Island,

Xishangbanna southern part of Taiwan province).

China's forest is further classified into the following

categories based on their different uses:

1.

Protection forests

 

The protection forests consist of windbreak, sand
dune stabilization, farmland and pasture shelter—

belts, water and soil conservation forest, water

resources containment forests, river bank and road
side protection forests, and national defense
forests.

2.Timber forests

 

Timber forests mainly mean commercial forests and
bamboo forest.

3. Economic forests

These forests are for the production of fruit, edible
oil, industrial raw materials and medicine.

4. Fuelwood forests

Fuelwood forests contain trees and shrubs that produce
firewood and charcoal.

5. Forests for special uses

These forests and trees are used for environmental
protection, scientific purposes (including seed
production areas), landscape forests, and natural
preserves.

Natural forests are limited in area and unevenly dis-
tributed. Sixty percent of the forest volume is concentrated
in two geographic regions: 1) The northeastern provinces of
Heilongjiang, Jilin; and 2) The southwestern provinces of
Yunan, Xizang and Sichuan. The most ofthe forests are over-
mature and have never been exploited because of inaccessibility.

Forestry in the National Economy

 

Forestry”s share in the gross value of agricultural

output remains relatively small but has increased steadily

from less than 1% in the early 19505 to 4.1% in 1982 (equivalent
to 9.5 billion Yuan in value). There are 2.2 million employees
(less than 1% of the rural work force) in forestry and forest
industries, with nearly 60% involved in wood processing, 30%

in land preparation and planting, and 10% in nursery operations:
logging, etc. Annual per capita consumption of timber products
is about 0.05 cubic meters (excluding fuelwood), compared to
0.08 cubic meters in India and 1.50 cubic meters in the

United States (6). The imports of timber have increased from
270,000 cubic meters in 1975 to 1.82 million cubic meters in
1982. By 1982,the value of imported timber products including
pulp, paper, and plywood reached over US $ 600 million.

Timber exports have been in a small scale, ranging from

220,000 to 360,000 cubic meters annually during the past

decade.

Afforestation

 

Afforestation has been carried out on an extensive
scale in the last few decades. Provinces in southern China
have planted 5.31nillion hectares of timber forest which is

mainly Chinese fir (Cunninghamia lanceolata) and 1.33 million

 

 

hectares of bamboo groves. An additional 4.74 million hectares
of trees of economic value have been planted throughout the
country. Aerial-seeding has covered 3.09 million hectares

in sparsely populated and inaccessible areas. A network of
forests has been built across 12.66 million hectares of
farmland on plains in central and northern China. Many

hills are closed off for natural regeneration. In the

 

afforestation drive, over 340 bases have been set up for
tree improvement, covering 21,000 hectares, and over 1900
state—owned nurseries have been established, cultivating
2,000 hectares of seedlings each year. A total of 4,076
state-owned forest farms have been set up with an area of

48 million hectares, of which 657Inillion hectares are new
forests. There are 175,000 collectively owned forest farms,
covering 16.661nillion hectares. Seedlings planted before
the 1970's have become a new source of timber (11).

The "Three North Shelter Belts Project" (Northwest,
Northeast and northern part of North China) began in 1978.
This undertaking has become known as the "Great Green Wall."
Seventy five percent of the first phase of this project has
been completed, amounting to 4v41nillion hectares of forest.

In the early years of the Peoplefs Republic of China,
national forest cover comprised only 8.6% of the land base.
China's rigorous afforestation efforts have resulted in a
significant increase in natural forest cover, now estimated
to be over 12% (11).

Timber Products Industry

Along with the development of forests in the Northeast,
Northwest and Southwest, 163 state-owned forest industry
enterprises have been set up. In the state-owned forests,
there are 131 logging enterprises with an annual production
capacity of 27 million cubic meters of timbem. Over 90,000
kilometers of forest roads and 13,000 kilometers of forest

railways have been built, while 57,000 kilometers of waterways

for wood transportation have been dredged. The forest
enterprises, paying attention to both exploitation and
conservation, are felling trees in a rational way, and have
planted 2.43Inillion hectares of new trees. In the collec-
tive—owned forests, with an annual production capacity of 13
million cubic meters, management and control has been improved,
and facilities for timber shipment and storage have been
built. Under the current state plan, the annual timber
production in the national forests now stands at 50 million
cubic meters, compared to only 5 million cubic meters in
the early fifties. Many lumber mills have been built. In
1983, China's lumber mills sawed 141nillion cubic meters of
logs. A wood-based panel industry (plywood, fiber board and
particle board) has sprung up since 1958. Its annual output
has reached 1.39 million cubic meters, 39 times higher than
in the early 19505. The forest chemical industry is turning
out a greater variety of products, in larger quantities and
of better quality. China is the largest producer and exporter
of rosin in the world (11).
Forest Protection

China has 7,600 professional forest fire fighters and
has developed 135,000 kilometers of fire breaks. Approximately
2,000 watchtowers have been erected and 30,000 kilometers of
special communication lines devoted to fire prevention have
been laid. In Northeast China and Inner Mongolia, there is
a forest protection aviation bureau which supervises 9 aviation

stations manned with parachute fire fighting brigades.

Forest insect and disease control efforts consist of 2
biological control centers, 500 control stations and 2,000
observation posts which have been set up throughout North
and South China. Due to environmental concerns, biological
control combined with other measures are gradually replacing
manual and chemical methods of control. Concurrently, quaran-
tine efforts have been strengthened and increased attention
is being paid to the selection of insect-and disease-resistant
strains and the enlargement of mixed forests (11).

Research

Rapid progress has been made in scientific research in
forestry since the founding of New China in 1949. The
Central Research Institute of Forestry was set up in 1952,
which was enlarged in 1958 and renamed the Chinese Academy
of Forestry. The Academy is a forest science research
,center featuring a comprehensive multidisciplinary research
program. It is composed of 12 research institutes, labora-
tories and experimental farms, which specialize in forestry:
timber industry, forest economics, forest chemical industry,
subtropical forestry, tropical forestry, forest technical
information, etc. Forest research institutes have also been
set up in all provinces, municipalities directly under the
Central Government, autonomous regions, and in some prefec-
tures and counties. With a research staff of 7,600, the
national network of 679 research institutes are the core of
China's national forestry research efforts. Over the last

35 years, 1,424 forestry—related research projects have

proven fruitful, resulting in increased production. Appro-

ximately 12 improved poplar (Populus sppJ clones have been

 

planted on 100,000 hectares, where new, fast growing techniques

have been applied. China‘s first generation Cunninghamia

 

seed orchards can produce 25,000 kilograms of improved seeds
every year, enough for 66,000 hectares of plantation.

Education

 

China now has 11 forestry colleges and 18 forestry
departments within its agricultural colleges. There are
4,400 faculty members, of whom 460 are professors or associate
professors. The total enrollment includes 250 graduate
students and 14,000 undergraduates. They now graduate some
3,000 students each year. In addition, 37 forestry schools
offer 13 specialties in biology and engineering. The faculty
members total 1,900, and enrollment is 13,000. Four thousand
students graduate from these schools annually. By the end
of 1983, Chinals forestry colleges and forestry schools had
graduated 57,000 and 69,000 students respectively.

The government has also set up 18 training colleges and
schools for cadres (officers). Several evening colleges
for workers, educational programs carried by radio and tele-
vision, along with secondary technical training centers of
short courses, all aimed at giving forest workers an oppor-

tunity to study forestry technology and management (11).

Natural reserves

 

There are 120 natural reserves under the administration
of the forestry departments comprising an area of 7.8 million

hectares. Rare plants under protection include Metasequoia

 

glyotostroboids, Cathaya argyronhylla, Pseudolarix amabilis,
Bretschnei bera sinensis and Davidia involucrata. Rare
animals under protection include the giant panda, golden-
haired monkey, takin, white-lipped deer, crested ibis and red
crested crane, etc. In April 1983, the State Council promul-
gated the "Circular Order on Strengthening the Protection of
Wild Animals" to improve the protection work. In December
1983, the China Wildlife Conservation Association was set

up. To promote international cooperation in this field,
China has acceded to the "Convention on International Trade
in Endangered Species of Wild Fauna and Flora" (11).

Goals and Objectives

 

 

According to the strategic objectives set by the 12th
Party Congress in 1979, the goals in forestry are: l) to
raise forest percentage of cover in China from the present
12% to 20% of the nation's total land area; 2) to increase
the timber output from the present 50 million cubic meters
to 100 million cubic meters; 3) to increase the total forest
volume by 12 billion cubic meters; and 4) to quadruple the
1980 total output value of the forest industry by the end of

the century (11).

CHAPTER II

FORESTRY POLICY

Leftist Influence

Many of China's current forestry policies were formulated
as early as the mid 1950's. These policies included "sustained
yield forest based on silvicultural principles"; Wfiiller utili-
zation of timber"; "planting the trees based on appropriate
species/site characteristics "; and "greening the countryfl'
The past 35 years have shown that most of these policies are
still relevant for forestry development in the 1980's. However,
these policies have not been completely implemented because
of the influence of various political decisions.

Forest resources suffered severe damage during the
"great leap forward" when the government placed undue stress
on steel and grain production. Thousands of hectares of

forest were cut for manufacturing steel and were converted

into farmland.
China is a country with a population of one billion

with only 10.5 percent arable land. The food problem is the

first priority of the government. However, the government
has overemphasized grain production while ignoring the

beneficial function of forests. The Ministry of Forestry

10

11

was merged with the Ministry of Agriculture during the late
19605 and 1979, and staff members were reduced from 1000 to
100. During that period, many areas which were not suited
to growing grain crops were claimed as farmlands under the
slogan "Taking the grain as the key link." As a result of
these policies, serious deforestation occurred.

The Ministry of Forestry was considered by some leaders
as the Ministry responsible for wood production and as a
result, wood production was inadequately stressed and the
funds for afforestation were small and uncertain. Some
logging enterprises, overloaded by felling tasks set by the
state plan could not plant trees within two years after
harvesting according to "sustained yield forest based on
silvicultural principlesfl'

The number of people in the rural areas comprise over
80 percent of the total population in China. In the past 35
years, they have planted more than 80 percent of China's
forest plantations. A main distinction between good and
bad forestry policy is whether it gives incentives to pea-
sants to plant trees. Marketable trees such as tea oil tree
(Camellia oleosa Rehd), tung oil tree (Aleurites fordii
Hemsl), fruit trees, and fast-growing timber trees, are
attractive to peasants because they can bring them cash
income. However, when the Left were in power, they
emphasized an equalization of wealth. The marketable
trees planted surounding peasant houses were labeled as

"Capitalist tails" and taken away from them. This abnormal

12

situation lasted for a long period. As described by Ross:
"on the one hand, the government has lent strong, continuing
symbolic endorsement to greenification, on the other hand,
frequent policy reversals, uncertainties over ownership
rights, and inadequate investment have interferred with
forestry development," (13).
Changes 13 Forestry Policy

Obvious changes have been taking place since 1979. The
first Forest Law was adopted by the Standing Committee of
the Fifth National Peoplefls Congress on February 23, 1979.
The Law, reiterating good regulations in forest operation
and protection, states that: l) The total area of forest
cover in China should be increased to 30.percent; 2) A fixed
forest silviculture fee should be levied on the selling of
timber, bamboo or other forest products; 3) The principle of
"planter as owner" is stressed; 4) People of the whole
country have an obligation and right to plant trees and
protect forests; and 5) Cities, industrial areas and mining
areas should have at least 5 square meters of forest enviro—
ment per person. Wood operation enterprises are required to
replant trees within two years after felling. The coal and
paper manufacturing industries may use the silviculture fees
which are collected from coal and paper output to establish
their own production forests.

An amended draft of the Forest Law was adopted by the
Sixth Session of the Standing Committee of the Sixth National

People"s Congress on July 5th, 1984. The government, as

13

specified in the draft, will issue licenses of forest owner-
ship and operation of forest land (including public and
private lands). The right and interests of license holders
are protected by the law. Trees planted by people surounding
their houses and family fuelwood plots are the property of
the planters. The ownership of these trees can be inherited
or transferred. The draft has tightened the control of
felling by mandating "cutting less than the mean annual
increment and maintaining the principles of sustained

yield." All the harvesters (including private) Should apply
for felling licenses before felling takes place. Realizing
that long term and large investments are needed in forest
deve10pment, the government will increase its funding in
forestry. Meanwhile, it will expand the range of fees levied
on forest silviculture operations. The punishment for viola-
tion of the law has increased since its implementation.

The People?s Congress requires all able-bodied Chinese
over 11 years of age to plant 3-5 trees every year as an obli—
gation of all Chinese citizens. Revegetation committees were
set up at the local, provincial and national level to organize
the plantation activities. In addition, such industries and
service groups as coal mining, paper manufacture, water conser-
vantion, power and highway departments, railroads, and travel
agencies are required to set aside certain funds for plantations.

The system of contracts and production responsibilities
has been a great success in agriculture production. It is

now being applied to forestry. Recently, the mountainous

14

areas (over 16.7 million hectares) were assigned to 50
million peasant families. The government encourages people
to plant trees by allocating subsidies (105 Yuan/ha) and low
interest loans, thus enhancing the law to protect planters'
rights and interests.

Past experience has shown that the implementation of
good policy requires conscientious leaders. The government
stresses that the leaders at all levels should take respon-
sibility for doing good revegetation work. Demonstrated
responsibility will be an important criterion used in reviewing
the qualifications of the leaders (12).

The new forestry policy has had significant impact on
forestry development. The people's willingness (particularly
the peasants) for planting has greatly increased. Many
peasant families have signed contracts with the government
for planting trees in mountain areas and several families
have organized themselves to establish forest farms. The
results are obvious. There were 10.81nillion hectares planted
in 1982 and 1983 according to the plantation figures released
by the Ministry of Forestry (12).

Forestry in China will be very promising if the new
forestry policy is maintained and the government continues its

efforts in forestry development for the next 10-15 years.

CHAPTER III

PLANTATIONS

General Outlook

In comparison with the massive size of its population,
China has few forest resources. The only way to meet the
increasing demand for wood and wood products is to plant
more trees. Since 1979, increased governmental efforts have
included the issuance of a new Forest Law, restoration of
the Ministry of Forestry, adjustment of forestry policy,
allocation of increased funds for plantation establishment,
settlement of forest ownership claims, etc. Obvious results
have been achieved from the governmentds efforts. It is the
government's goal to increase forest cover from 12% to 20%
by the end of this century. At the first glance, it would
not appear to be a difficult task because only 4.5 million
hectares of plantation needs to be established each year
during the rest of the century while 4.81nillion hectares
of trees have been planted annually in the last ten years.
However, looking at the 31% survival rate of the plantations
in the past 30 years, it is not an easy task. Something

should be done to increase the survival rate. It is expected

15

16

that the rate of preservation will be increased by adoption
of contract and production responsibility systems in planta-
tions.

One hundred and twenty-three million hectares of trees
were planted in the open lands in the last 35 years, of which
38 million hectares of these plantations have survived. In
addition,'L6 million hectares of plantings were established

on the areas harvested from 1950-1982 (11).

Planting 22 Open Lands

There are 4,076 state forest farms (with over 410,000
workers) and 175,000 forest farms owned by communes and
brigades (11). Some private forest farms have recently been
established following the changes in governmental forestry
policy. The people in communes and brigades conduct over
80% of all afforestation. Subsidies of up to 105 Yuan/ha
are given within 2-3 years after the trees are planted and
planting quality is inspected. Of the 123 million hectares
of land which were planted during 1949-1983, only 38 million
hectares have survived. The success rate was only 31%.

Areas of successful plantings on open land for all
purposes are summarized in Table l. Timber plantations
cover 30.7 million hectares. All other tree plantings--
miscellaneous nontimber tree crops, Shelterbelts, protection

forests and fuelwood crops--cover 7.7 million hectares.

17

Table 1.--Successful plantings on open lands, by function,

 

 

 

1949—83
Plantation Area Percent
function planted of total
(Million ha)
Timber 30.7 79.8
Nontimber crops 4.5 11.8
Shelterbelt and 2.4 6.3
protection
Fuelwood .8 2.1
Total 38.4 100.0

 

Source: Percentages (from FAO, 1982) applied to total
area estimates.

Species Used 12 Planting

Populus species are considered as one of the fast
growing and high yielding species which are planted in China.
Populus species are good for pulp and plywood manufacturing.
There are about 3.83 million hectares of Populus distributed
throughout north, northeast and northwest China. However,
only 20% of the fiber used in paper production is wood pulp,
the remaining 80% is derived from other raw materials including
bamboo, bagasse and straw. China also imports a number of
pulp and paper products to meet its domestic demand. The
current consumption of paper products per capita is only

4 kilograms per year which is one-tenth of the world

average.

18

If China were to attain the world average in its paper
consumption, this standard of consumption could be met with
13 million hectares of Populus. Many areas are available
for such planting-- secondary forest (low yield) in Heilong-
jiang province (13 million hectares), open land in Jiling
and Inner Mongolia Autonomous region (ldarnillion hectares),
and grasslands (200 million hectares) UH-

Paulownia is called "cash tree" by peasants in northern

 

China. It can easily reach 30-40 cm in diameter and 0.4—035
cubic meters in volume per tree within 10 years. It is
planted in 23 provinces and autonomous regions. If 2 billion
Paulownia tree seedlings are planted before 1985, 200 million
trees could be harvested annually beginning 1995. There
would then be 40-60 million cubic meters of additional wood
available, which equals the current rate of wood consumption
in the whole country (based on a calculation of 0.2-053

cubic meters per tree) UH. With low labor costs and short
transportation distances, China is expected to become a

major Paulownia supplier to Japan.

Cunninghamia lanceolata, the most important species

 

planted in China, is planted in 16 provinces in southern
China and comprises 25% of the total commercial wood produc-
tion. C. lanceolata grows on a 20-year rotation with an
average volume yield of 300 cubic meters/hectare. Plans

project an estimated 1.33 million hectares of Cunninghamia

 

to be planted each year in Fujian Province from 1984—1994.

19

The harvest is expected to start by the year 2000 with
666,000 hectares harvested per year yielding 10 million
cubic meters annually; The estimated income to Fujian pro-
vincial government will be one billion Yuan after the timber
is processed (12).

Bamboo has the same nickname as Paulownia—-"cash treeJ'

 

It is distributed in the area of 240-320 north latitude and
1020-122o east longitude. It takes only 2 months for sprouting
to regrow to full size, but requires an additional 5-6 years

to reach harvestable maturity. Bamboo products can substitute
for many wood products including furniture, farming tools,
musical instruments, poles, beams, and home construction
materials. Fifty pieces of bamboo are equivalent to one

cubic meter of wood and 3 tons of bamboo yield 1 ton of pulp.
The output of bamboo per hectare is 23-30 metric tons and

there are currently 5 million hectares of bamboo in China (4).

Eucalyptus was introduced into China in the early part

 

of the 19th century. By its ecological requirements, it

has been planted in the southern provinces. 'Where planted,
it has exhibited fast growth and high yield. The most
successful plantation was established on Leizhou Peninsula

in Guangdong province yielding 189 cubic meters per hectare
at 12 years of age. More than 60,000 hectares of Eucalyptus
have been planted on Leizhou Peninsula with an annual harvest
of 400,000 cubic meters. The leaves of the Eucalyptus
contain high oil and tanning compounds ranging from 0.7-1{W%

oil content and 5.6-13.6% tanning content (4).

20

A large amount of Pinus elliottii, P; taeda and g;

 

caribaea seeds were imported during 1973-1976 and 1982-1983.
These pines have performed well in southern provinces and
planted areas have been expanded to 40,000 hectares (15).

The resin content of g; elliottii is l9u2-22.3%, 5-6% higher

 

than in the native species g; massoniana. So P; elliottii

 

may take the place of P; massoniana as the major resin
species in China, providing rosin and turpentine oil for
industrial and medicinal uses. The planted areas of the
above mentioned exotic species are expected to be continuously
increased.
Areas Planted 2y Species

The percentage of the total open area planted in each
species or species group was derived from information
provided by FAO and the Chinese Academy of Forestry. By
applying the species percentages to the total plantation
area successfully planted (38.4 million hectares), the areas
occupied by different species could be calculated (Table 2).

The rate of open land successful planted built up
rapidly to the middle 1950's and increased more slowly in
recent years. Annual successful planting averaged 1.2
million hectares in the period 1954-58, 143 million hectares
in 1969-73, and 1.5 million hectares in 1979-83.

About 80 percent of the plantings shown in Table 2 are

intended for timber production. All the Cunninghamia

 

lanceolata, Pinus massoniana, Phyllostachys pubescens,

 

21

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asmbmu< mmwcfinu Luws mocwccommwuuoo CH pwcfimuno mum» Hm>w>usm uchHmQ Hm mcfims

.pmuspwu mmcwucmam Hmuoe .mhma .wuummuom 0cm wusuasofiuma mo >5momu< mmmcflno
.mmma .smmusm mowumwumum mcflco map .mmma .omm Eoum mmfiommm an mmCMucmHm Hmuoe "mousom

 

 

omms omms ammo ommm onus oamm cum omamm Hmuoe
mamm mmmm ammm mmma NASH msom mom «mHmH umsuo
awe Nms mmq osv NAN kmm mm Hmvm .aam mwcsoasma
Hm» mms «mm Hem mmv mam om mmmm .mmm msasaom
302:me
MOOH mooa saw ems mmm has mHH saam mamUmwnsm mucomumofifiscm
HONH voma NBOH mam Ham mam mma swam mcmflcommme mscflm
NOBH mama mmma MNHH Hmm msHH msH News mumfiomucma adamnmcwccso

Awwumuowc ocmmsonev

mml mm: mm: wml mm! mml mm!
mhma «baa mmma vmma mmma vmmH mvma mumm> HH< wwwowmm

 

mCMucmHm mo mummy

.mmumva mwfiommm >2 .mbcma ammo co mcw>w>usm 0cm bwcmfianmumm mc0wumucmam mwue II.~ manna

22

and Paulownia spp. are intended for timber production.

 

In the "other" category, however, most planting has been for
nontimber purposes. In the later case, 13.2 million hectares
have been planted, of which only 5.51ni11ion hectares are
considered to be timber plantings. The distribution of

timber species planted on open lands is shown in Table 3.

Shelterbelts

 

Among the nontimber objectives in planting, Shelterbelts
deserve special mention. Although the Shelterbelts have
nontimber primary objectives, they can produce considerable
quantities of wood. An entire county in Henan province has
established Shelterbelts with an estimated wood volume of
1J2 million cubic meters. The county now provides annually
30,000 to 40,000 cubic meters of timber to the market.

Shelterbelts are divided into four categories: 1) shel-
terbelt for protecting farmland, 2) Shelterbelt for grazing
land, 3) Shelterbelt for soil and water conservation, and 4)
Shelterbelt for wind breaks and sand fixation.

More than 333 million hectares of land, one third of
the total land area in China, are endangered by wind
damage, drought, and serious soil and water erosion. The
Gobi desert, salt desert, and sand lands in northern,
northeastern and northwestern China, comprise thirteen
percent (128 million hectares) of total land. In addition,
there are 23,000 kilometers of coast line in southeastern
China where there are problems of sand land and salt desert,

wind damage, and severe water and soil erosion (7).

23

Table 3. Estimated percentage of timber species planted on
open lands

 

 

Species Area of successful Timber
plantations plantations
(million hectares) (%)

Cunninghamia lanceolata 7.67 25
Pinus massoniana 6.13 20
Phyllostachys pubescens 5.12 16.7
(Bamboo)

Populus spp. 3.83 12.5
Paulownia spp. 2.45 8
Other conifers and broad 5.45 17.8

leaf trees

Total 30.66 100

 

Source: (2), (3), (4), (9).

24

The big Shelterbelt project in China is called the
"Three North Project" (north China, northeast and northwest
China) or the "Green Wall Projectflh The engineering plan of
the project was approved by the Peoplefls Congress in 1979
and the first phase of the project is expected to be completed
by 1985. The Shelterbelt will be 7,000 kilometers in length
running approximately parallel with and to the north of the
Great Wall. The budget of the project is about 900 million
yuan ($ 450 million US) and a special department has been
created to carry out the work (4). There are 8 provinces, 3
autonomous regions and one municipality in north, northeast
and northwest parts of China involved in the project.

To date there have been 5.77 million hectares of trees
planted in Shelterbelt areas, of which 4¢41nillion hectares

of plantings were have been successful (11).

CHAPTER IV

PROJECTED TIMBER YIELDS FROM PLANTATIONS

Estimated percentages of the major timber species
planted from 1949—1983 are used for projecting future timber
yields. The projection is based on the assumption that
later plantings will have the same species distribution as
earlier plantings. Projections begin with the year 1984 and
are made for 5-year intervals.

The projections are based on expected harvests from
plantings established on open lands and replanting on
previously harvested areas. They do not include harvests
from some unlisted tree species CLLB percent of all
plantations on open lands) or timber harvested from shelter-
belts or other nontimber plantings. Fire loss, and insect

and disease damage have not been considered in the projections.

Timber Yields py Species

 

To project future timber yields, growth estimates and
rotations are needed by species. The estimates used are
summarized in Table 4.

The estimates used for Cunninghamia lanceolata are
based on an average performance in 9 different climatic

regions (2). Estimates for Populus spp. are based on an

25

26

.3: :3 .23 .3; :3 ambusom

 

omnmm w o.mlm.m mcmommnsm wxcomumoHawcm
Amcou owuumzv Amn\mcou ofiuumzv
nmm mv ¢.o mfimcwfimuox unawm
Nmm mv v.5 .mmm xwuma
omv mm o.~H mcmwcomwme macaw
mma NH h.ma mam msummamosm
mam om m.ma mumaomocma memnmcwcch
oov ma h.om .mmm mmummmmmm
vvm Ha m.Hm .mmm msasmom
Ham m o.¢m .mmm mficonsmm
3:35.53 Amumwwv Amc\.E.sov
cowumuom mo cumcwa Lusouo
cam um Gama» c0wumuom Hmscca mwfiommm

 

mcMcU c“ poucmHm mmfiowmm moms MOnmz mo moamw» mEsHo>|a.v manna

27

average performance of stands of Populus simonii x nigra var

 

 

italica, P.nigra var italica, g;_§ euramericana cv Sacrau

 

9, g; Canadensis. Estimates for Larix spp. are based on

 

average performance of Larix gmelini, L.principis-rupprechtii,

 

E; olgensis, L.sibirica. Estimates for other species rest

 

on more limited data, but all are based on recorded measurements.

Projected Timber Yields from Plantings
Established pp Areas Harvested

 

 

 

The normal practice of replanting on harvested areas is
carried out by professional groups within two years after
the trees are felled. Projected yield estimates (Table 5)
are based on a high rate of survival and an average growth
performance of Pinus koraiensis, Larix gmelini, [uprincipis-

rupprechtii, L.olgensis and L.sibirica. These are the

 

major species used to replant harvested areas in Northeastern
China. g; koraiensis yields an average of 287 cubic meters
per hectare, managed on a rotation of 45 years; Eggix‘gpp
yield an average of 332 cubic meters per hectare, managed on
a rotation of 43 years. In addition, some other species are
planted, but information is not‘available. Table 5 assumes
an average rotation of 44 years and a yield of 310 cubic
meters per hectare from all replantings on harvested areas.
Northeastern China supplies 60-70% of the wood needed
in the country. The remaining harvest areas are in the
northwest and western parts of China, where higher yields

are assumed because the climate is milder.

28

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owosu cam mo moamww mmmum>m cam cofiumuou umwxuvv 6 mo cofium85mmm co comma

 

 

 

 

omuowmxw mcawwx umoEme .mmma .smmusm momummuMDm mcwcu Eoum mmucmHm mmmu< “mousom
ommm bmvh Hmuoe
mmm mmam mnlmnma
mam Han vbuonma
«aw mmma mmummma
mmm mmHH emuowma
mmm ovHH mmlmmma
mm on vmlomma
Amumume ofinso coflaafizv Am: ooo.Hv
mmomumaom maomuvaom maomnmoom moomlvoom moomummma womalvmma
Umucmam bwucmHm
pmuommxm mpamw» uwnEMB mususm wows mummy

 

mnma 0» omma EOMM

Uwumw>umm mmwus co Umnmfianmuwm mmcflucmHm Eoum Uwuowmxm mpamw» umnewa wususmln.m magma

29

Under the assumptions of Table 5, the area planted in
1950 will be ready to harvest by 1994. The expected harves-
table volume in the period 1994—98 is projected to be only
25 million cubic meters, but it will dramatically increase
to 353 million cubic meters in the years 1999—2003. The
plantations established from 1950 to 1978 will bring China a
total volume of 2,3201ni11ion cubic meters of timber by

2023.

Projected Timber Yields from Plantings pp Open Lands

 

Since most of the plantings on open lands are short-
rotation species generally grown 6-20 years (average about 15
years), the projection of harvests has been limited to the
more recently established plantations. ProjectiOns have
been based on stands established after 1973 and those that
will be planted later but harvested before the year 2023.

The average planting rate for 1974-83 (4J31nillion hectares)
is the rate assumed for future plantings. Species represen-
tation in the future plantings is also assumed to remain the
same as it was in 1974-83. Further assumptions are that the
historical survival rate, 31 percent, will remain unchanged,
and that the percentage of trees planted for timber purposes,
80 percent of the tree planted for all purposes will remain
unchanged.

By the assumptions above and the rotation lengths and
yields listed in Table 4, expected future timber harvests
from plantations on open land have been projected by species.

The results are shown in Table 6. These are conservative

3O

 

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Amcou Dauume coflaawzv

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mom mmm mmm mmm mmm mmm mmm mmm .mmm msasmom
mumaowocma
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vom vom vom mcmficommme mscfim

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m~o~-vmma .mmfiowmm mm .mocmu

ammo co mcfi>fi>uom new cmcmwanmumm mcowumucmam Eouw mpawww umbefie @wuomnoumln.m manme

31

estimates. They do not include harvests from tree species
not listed in the tabulation, nor plantings established
before 1974, nor plantings in natural forest areas, nor
yields from plantings established primarily for nontimber
purposes. Moreover, there is no recognition in the projec-
tions that the rate of planting will likely increase to meet
the target of 20 percent forest cover in China by the year
2000.

Despite the conservative approach to the projections,
the projected yields calculated increase rapidly over the
projection period with 82 million cubic meters of wood plus
5 million metric tons of bamboo annually in 1984-88 to 273
million and 5 million annually in 2019-23. In contrast to
50 million cubic meters of present wood consumption in
China, 273 million cubic meters annual yield of wood would
bring China a total different picture in wood consumption.

Projected Timber Yields from all Plantings

The projected yields from plantations on areas harvested
and open lands are illustrated in Table 5 and Table 6 respec-
tively. The Table 7, a simple combination of Tables 5 and 6,

shows projected timber yields from all plantings.

32

 

 

mcwummosm

 

 

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Amcou owuuwe coflaawzv
mmom voma coma vmma mmma mom wow wow Hmuoe
oma omH omH oma omH oma omH omH .mmm mwczoasmm
mom mmm mmm mmm mmm mmm mmm mmm .mmm msasmom
.mmm xwuma
mmm mam «av mmm mmm mm a mwmcmwmuox.m
mumHomocmH
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mcmficommme
«om «om «om mscfim
Amumuwe UAQDU cofiafiflzv
mm: man ma: mo: moom mm: mm: mm:
maom vaom moom voom Immma vmma mama vmma
mwfiommm

 

pmuommxm mbawww umbefia mucusm

 

Ammomlvwmav mmcfiucmHm Ham EOuu mvawww MOQEHB

omuuwnoum

was -u.A magma

CHAPTER V

TIMBER DEMAND

The demand for timber is a result of many factors--
consumer preferences, income level, the abundance of forest
resources, prices at which timber products can be made
available to consumers, and the availableness and prices of
substitute materials.

Current Consumption

China has had a long history of chronic timber
shortage. This situation together with a large population
(1,024 million in 1983) and low income levels has resulted
in a low timber demand. Average 1983 net income per capita
was 310 Yuan in rural areas and 826 Yuan for employees
(salary and wage earners)--equivalent to $ US 413 (12).

Timber products consumption was 52 million cubic meters
in 1983, one-fortieth of the United States consumption. Even
this level of consumption has been difficult to maintain
since timber cutting restrictions were tightened in 1979.
Imports increased from 539,000 cubic meters in 1977 to
1,552,000 cubic meters in 1981, valued at $ US 595 million (6).

Substitutes for wood are commonplace. For example, it
is a common practice to use steel doors and windows in

housing construction, concrete sleepers as railroads ties,

33

34

concrete street-light poles, concrete boats, etc. Bamboo is
widely used for housing, furniture and paper manufacturing.
Future Demand

Future demand for timber products can be dealt with
here only in a general way. Some indications can be obtained
from population and income projections and government deve-
lopment programs of various kinds.

Population increase alone will raise the level of wood
consumption even if annual per capita industrial timber
consumption remains constant at .05 cubic meters. The 1983
population of 1,024 million is increasing by 9.51nillion
annually (12). .At this rate, the population will reach 1.1
billion in 1990, 1.14 billion in 1995, and 1.19 billion in
the year 2000. Assuming no increase in per capita consumption
of industrial wood, aggregate consumption will increase 3.3
Inillion cubic meters by 1990, 5(7Inillion cubic meters by
1995 and 8 million cubic meters by the year 2000.

Consumption of timber will change in response to
changes in GNP and personal income. According to the "Four
Modernizations" plan (modernizations on agriculture, industry,
national defense, science and technology), it is the govern-
ment's goal to quadruple the GNP within 20 years (1981-2000)
and for employee’s income to reach 2,000 Yuan. Undoubtedly,
such large increase in GNP and personal income will be
difficult to achieve, but to the extent that increase do

occur, timber consumption will increase.

35

Production and trade data indicate that the volume of
timber consumption has increased an average of about 3
percent annually over the past 10 years CD. Sales of
timber from 1982 to 1983 were reported to increase 6.3
percent, and paper and paper products, 12.2 percent (12).
Government plans suggest a continued drive toward
development and, as a consequence, continued expansion in
wood consumption. For example, the sixth five-year plan
(1981-85) calls for an additional coal output of 80 million
tons, which will require more than 1 million cubic meters of
softwood props (1.3 cubic meters per 100 tons). An increase
of 2,000 kilometers of rails and double tracking of a 1,700
kilometers of existing railways will require an additional
740,000 cubic meters of roundwood (200 cubic meters per
kilometer). Housing construction is developing rapidly. In
1983, 115 million square meters of housing construction
were completed in urban areas and 700 million square meters
of farm housing in rural areas.

To project timber demand is a hazardous undertaking,
but the rate of increase under way and government targets
for development suggest a range of increases on which
expectations can be built. An assumption of a lower rate of
growth in consumption, such as 2 percent, would project to
60 million cubic meters by 1990, 73 million cubic meters by
2000, and 77 million cubic meters by 2020. At a higher rate

of growth in consumption, such as 4 percent, the projection

36

would reach 68 million cubic meters in 1990, 101 million in
2000, and 222 million in 2020.

A medium-level rate of growth in annual timber
consumption would approximate the 3 percent achieved in the
past 10 years. Such a rate would increase consumption to 64
million cubic meter by 1990 and 86 million cubic meters by
2000. To carry the projection further, annual timber consump-

tion would reach 116 million cubic meters by 2010 and 155

million cubic meters by 2020.

CHAPTER VI

TIMBER SUPPLY

The supply of industrial timber products is heavily
dependent on the forest resources available and industry‘s
capacity to manufacture and distribute products. In view of
projected demand, large increases in supply are considered
necessary, and it is anticipated that such increases will be
forthcoming. Growth in timber-products output which increased
from 567,000 cubic meters in 1949 to 52,320,000 cubic meters
in 1983, is expected to continue.

Forest Resources

China has 5.81nillion hectares of virgin forest with
1,400 million cubic meters of growing stock in the Xizhang
(Tibet) autonomous region (10). Although this forest presently
is inaccessible and untouched, the government plans to build
a railway from Sichuan province that will tap the virgin
forest and make a significant contribution to wood production
by the end of this century.

Other timber forest areas, located mainly in the Northeast
and Southwest, cover 92 million hectares. Total growing
stock of the timber forests (58 percent conifer) is estimated
at 7.7 billion cubic meters. These forest currently supply

most of the wood products harvested, and they are expected

37

38

to remain the primary source of timber for another decade.
With sustained yield as a goal, the government has set the
harvest ceiling about 501nillion cubic meters of commercial
timber per year. The harvest ceiling recognizes that some
70 million cubic meters are lost to forest fires, disease,
insects, forest land clearing, etc.(13).

The immense plantation program will change the future
sustained-yield harvest situation dramatically; In addition
to annual output of 50 million cubic meters of wood from
natural forests, plantations will be able to sustain annual
outputs of 180 million cubic meters by 1994, 245 million
cubic meters by 1999, 360 million cubic meters by 2009 and
404 million cubic meters by 2019 (Table 7).

It can also be expected that with improvement in the
manufacturing of wood products, still larger output of product
will be obtained from the projected yields.

The physical supply of timber from plantations is far
in excess of any reasonable projections of wood demand in
China. For example, if the medium-level rate of growth in
annual timber consumption (3 percent) is maintained, China's
timber consumption will reach 155 million cubic meters by
2020, little more than one—third of the sustainable physical
supply of plantation that will be available.

Physical wood supply is not the same as economic
supply. The industrial infrastructure necessary to use the
timber that will become available--inc1uding roads, logging

equipment, and processing plants--is immense, and there is a

39

question about the costs at which products can be produced.
But there is a developing opportunity for China to not only
meet its internal wood needs, but also to become a signifi
cant exporter of forest products.
Forest-Products Industries

With current annual consumption limited to some 52
million cubic meters of industrial timber and frequent efforts
made to substitute other products for wood, forest-products
industries do not represent a high stage of development.
There are 209 sawmills and 244 wood-based panel plants which
include plywood plants, fiberboard plants, and particle board
plants (4). Pulp and paper mills number over 1,000, but
these are generally small and insufficient to meet China's
current demand.

Existing wood-using industries face several problems.
One problem is the location of mills in cities far from raw
material sources, which creates high transportation costs.
Another frequent problem in mills is the use of out-of-date
equipment and machinery. This affects quality of product
and production costs. A third problem resides in the
small size of mills. Such mills have been favored in the
past because they limit the capital investment required and
make greater use of labor, but the small mills are neither
efficient nor economical. The government, recognizing pro-
duction problems in wood-using industries, increased invest-

ment in new equipment and technology in 1983 by 23 percent

(12).

4O

figgp Timber

Sawn timber is still the major wood product in China.
The output of sawn timber in 1983 was 14 million cubic
meters, comprising 30% of all industrial wood production
(12). The productive capacity in China's sawmills ranges
from 100,000 to 200,000 cubic meters per year (4).

An estimated one half of China’s lumber goes into the
construction industry. The extraction industry (mainly coal
mining) uses an estimated 20% of the lumber supply. Boxwood
and furniture account for 9%, pulp and paper about 5%, while
the remainder is used for building railway sleepers, trans-
mission poles, wood-based panels (plywood, particle board and
fiberboard) and other miscellaneous items (5).

Plywood

Plywood production began in 1951 with an annual capacity
of 17,000 cubic meters and reached 351,000 cubic meters by
1981. China has exported plywood products since 1955, but
the quantity is insignificant. Most of the machinery used
in plywood manufacturing is made in China except some key
equipment including slicers, peelers, jointers, etc., which
are imported from other countries. China is able to manufac-
ture machines and equipment for plywood plants with a capacity
less than 30,000 cubic meters per year. Several plywood
plants, with an annual capacity between 30,000 and 50,000
cubic meters, are to be imported and assembled in Hunan,
Jilin, and Fujian provinces. These new plants will greatly

increase plywood production.

41

Fiberboard

 

Fiberboard production began with some small scale wet-
process mills and one plant with 18,000 tons of output
capacity imported from Sweden. Production increased from
12,000 tons in 1959 to 568,000 tons in 1981 (14). China
developed its own softboard plant and dry-process hardboard
plant in 1970. A medium density fiberboard plant with an
annual output of 10,000 tons was built in Hunan province in
early 1980's.

China has made an effort to catch up to the rest of the
world in wood processing development. A medium density
fiberboard plant with a 50,000 ton annual capacity was
imported to Fujian province from the United States in 1982
and a similar medium density fiberboard plant was introduced
from Sweden to Heilongjiang province. Several plants with
smaller output are scheduled to be built in Sichuan and
Guangdong provinces, and in the cities of Beijing, Shanghai
and 'Tiajin.

The main problems in current fiberboard production are:
l) the machinery is old and outmoded; and 2) water pollution
from the wet process needs to be reduced. As a solution,
the government plans to replace some of the older equipment
and import technology and equipment to control water pollution.

Particle Board

 

Progress in the production of particle board has been
slow. Production began in 1962 with 5,000 cubic meters

annually and reached only 77,000 cubic meters by 1981 (14).

42

The main reason for this slow progress has been an insufficient
supply of adhesive. It appears that China may have finally
solved this problem because several particle board plants
have recently been established. China is able to produce
equipment for particle board production facilities with an
annual productive capacity between 10,000 to 15,000 cubic
meters. In addition to the establishment of particle
board plants with equipment manufactured in country,
China has imported several plants with 30,000 to 50,000
cubic meters output capacity in recent years. These plants
have been installed or are going to be installed in the
cities of Beijing, Tianjin and Guangzhou, and the provinces
of Heilongjiang, Jilin, Hunan and Sichuan. Particle board
production will increase dramatically within the next few
years.
Pulp and Paper

There are more than 1,000 paper mills in China ranging
in capacity from 1,000 metric tons per year to 100,000
metric tons per year (4). Over 20 percent of the raw material
used in Chinese paper is wood pulp. The remainder of the
fiber materials are drawn from other sources including
bamboo, straw, crop stocks, etc. The total output from
paper and paperboard manufacturing facilities in 1983 was
6.61 million metric tons (12), which is not sufficient to
meet the demand. China has to import large amounts of wood
pulp and paper products. The need for the importation of

wood pulp and paper products will continue for some years

43

Chemical Products
There are some valuable chemical products derived from

trees. The oil content of Eucalyptus spp. averages

 

1.2%. One hectare of Eucalyptus plantation can produce 7.5
metric tons of leaves from which oil and tannin are extracted.

There are about 60,000 hectares of Eucalyptus plantation in

 

China which can yield 5,400 metric tons of oil. The tannin
output of Eucalyptus is much higher since the content in

Eucalyptus is 8 times higher than that of oil (4). A study

 

shows the resin and oil content in Pinus _e_l_l_iottii is 19.2-

22.3%, 5-6% higher than that of Pinus massoniana (2).

 

The production of chemical products can be expected to
expand greatly with the development of plantations in China.
A new gasifying rosin plant, imported from Japan, was put
into production in 1983 in the Guangxi Autonomous Region.
Similar plants will be built in the southern provinces.

Through its own efforts, China has developed a variety
of adhesives for plywood, particle board, and surface finishing
production. A partial list of these adhesives includes urea-
formaldehyde resin, phenol-formaldehyde resin, melamine, tego
film, phenol-formaldehyde resin for impregnation, polyvinyl
acetate emulsion, modified melamine resin, rubber resin,
NDA-binary polymer resin and EVA hot melt adhesive. The
percentage of surface treated products has been increased in
recent years. Examples of common uses of surface treatment

include thin decorative paper and PVC film overlay by roll

44

pressing, direct printing on the surface of particle board,
micro-veneer overlay, low pressurelnelamine overlay,
etc.(14).

Marketing pf Forest Products

 

Forest product marketing in China is strictly controlled
by the State. The distribution of all timber products in
forest areas is under a unified plan and management. Railways
are prohibited from shipping out any wood without a forestry
administrations certificate. Five state organizations-
Ministry of Forestry, State Planning Commission (SPC), State
Bureau of Commodity Prices (SBCP), Ministry of Commerce and
the Ministry of Railways and Communications are involved in
the marketing of forest products. This is largely based on
a unified production and purchase plan which includes all
forest farm production and 70-90% of commune-owned forestry
production (5).

The user departments and units are required to submit
their requirements to the SPC, where the requirements are
incorporated into the national unified production and purchase
plan. The Ministry of Forestry prepares its annual production
plan according to the plan from SPC and allocates production
goals to all state forest farms and commune-owned forestry
production units. These farms and units are required to
supply their products at prices fixed by SBCP. The products
are sold to the users through the commercial departments in

conformity with SPC plan (5).

45

Market prices of timber set by the SBCP vary from one
region to another depending on species, location and quality.
Timber prices have long been set at low levels. This was
partly because the SBCP is basing the price on the direct
costs of lumber production and neglecting the costs of
afforestation and maintenance. This pricing policy allowed
little or no margin to the producing units to finance their
development programs. That was one reason cutting far
exceeded planting (5). There was a pricing adjustment of
lumber values in 1979 and as a result lumber prices increased
over 50%. Following this price hike, manufactured timber
product prices for plywood, furniture, etc., increased about
10%.

Trees owned by individuals do not come under the state
unified plan and can be sold in the local market. Some of
the timber products produced by commune-owned forestry pro-
duction units are also sold in local markets.L/ The local
market price operates according to supply and demand. However,
the price of timber products in the local market is always
higher than the state price. It is expected that the local
markets will play an increasingly important role in timber

supply as the new forestry policy is carried out.

 

1/ The government allows commune-owned forestry production

units to keep a certain percentage of the timber products they
have produced. The production units can dispose of these
retained timber products as they will.

CHAPTER VI I

29.21am

About 40 percent of rural household energy is provided
by fuelwood. Wood is an important source of energy, but the
historical shortage of wood in most of China has encouraged
the economical use of fuelwood for rural cooking and heating
and the search for alternative sources of energy.

Fuel sources vary depending on geographical location
in China. In the rural area in northern China (particularly
the forest areas), one can easily find large wood piles
behind houses. However, in southern China, wood piles are
replaced by piles of wheat straw, rice straw, cotton stock,
soybean stock, etc. In areas such as Tibet and Inner
Mongolia, people use dried cattle or horse dung as fuel.
Use of methane-generating pit, an inexpensive source of
energy, has developed rapidly in China. Some peasants have
started to use electrical cooking facilities since inexpensive
electricity is now.availab1e from small hydroelectric power
stations which have been built by peasants. Solar energy
is being tried for cooking, heating, and lighting in some
households in the northwest part of China. The government
has also loosened its restrictions on small coal mines
operated by peasants enabling them to obtain coal for fuel.

Table 8 shows the relative dependence of rural China on

different sources of household energy. At present only

46

47

Table 8 —- Rural Household Energy Consumption in China by

Type of Fuel

 

Fuel Quantity Coal Energy
Equivalent

Percentage of
Total Energy

 

(million tons)

 

Crop
reSIdues 266 129.2 44.4
Fuelwood 180 115.7 39.7
Coal 53 37.9 13.0
Dung 10 5.5 1.9
Kerosene 1 1.5 0.5
Electricity --- 1.0 0.3
Biogas -—- 0.6 0.2
Total 291.4 100.0

 

Source: (5).

48

three sources are important--crop residues, fuelwood. and ?#c
coal--although minor sources such as biogas and electricity
are gaining in use. Fuelwood, representing 40 percent of

the energy used by rural households, appears to be at least
holding its own as a source of energy. Its use, increasing
from 129 million cubic meters in 1970 to 157 million in 1981
(3), is increasing annually at a 2 percent rate, somewhat
faster than population growth.

Government policy does assign priority to fuelwood
planting, but it does not promote fuelwood planting on a
scale commensurate with that of timber planting. According
to one recent report, about 770,000 hectares of fuelwood
plantations have been established since 1950 (4). And in
recent years, small plots of wasteland have been assigned to
rural families in which to grow fuelwood, and the ownership
of such plots is protected by law. In the aggregate, such
private plots comprise about 16.7 million hectares. This
development of private plots for fuelwood will play an
increasing role in meeting rural household energy
requirements (5).

It is also understood that the massive program of
plantations for timber and other purposes will supply great
quantities of wood byproducts-~dead branches, dead trees,
logging debris, etc.--which can be used as fuelwood. The
need for large scale fuelwood plantations is not seen as a

critical need.

CHAPTER VIII

IMPROVEMENTS NEEDED

In contrast to other areas of national development,
forestry development requires the government's long-term
commitment and its strong and real (not symbolic) support.
The governmentls commitment to forestry has been small com-
pared with that of agriculture in the past 35 years. The
government has supported the extension of forest planting,
but it needs to increase investment in management and the
production, utilization, and marketing of forest products
which are critical to the future development of China. It
is of vital importance to expand the current policy which
favors forestry development. This policy should not be
subject to revision whenever the leading bodies in government
are replaced. The success of the current plantation program
hinges on how the peasants react toward the current policy
and its continuation.

Efficiency Improvement

Foreign business interests often find it difficult to
establish contacts with the right department when they want
to do business in forest products with China. The main
responsibilities of the Ministry of Forestry are planting

trees and providing wood products. Pulp and paper

49

50

manufacturing, and a portion of furniture-making, and wood—
based panel plants are the responsibility of the Ministry of
Light Industry. The export and import of wood products is
carried out by the China National Native Produce and the
Animal By-products Import and Export Corporation. The import
and export of forestry equipment and machinery are the
responsibility of the China National Machinery Import and
Export Corporation. If new technology and complete sets of
equipment are hmvolved, the China National Complete Plant
Import Corporation and China National Technical Import Cor-
poration will be the responding bodies. This complicated
organizational system is not only confusing to foreign
businessmen, it is also inefficient. In a typical case in
the early 1980's, the Ministry of Forestry lost a good
opportunity to purchase a wood-based panel plant because of
the mountains of red tape required by corporations and
governmental departments.

There was a government organizational adjustment in
1982, but this did not involve any change in the above-
mentioned arrangements. The government has tried to improve
working efficiency and has changed some departments into
companies. This has not had much impact because these
companies are still administered in the same way. The main
problem is that people committed to business are not allowed
to make the decisions, and those who do make the decisions

are not actually involved in business. It is hard to believe

51

that these decision makers can do a good job without more
specific knowledge about the actual business. Future
projections indicate that China will greatly expand wood
exports in the early 1990s. To help insure that these
projections are realized, China should make some organiza—
tional adjustments, improve its way of doing business and
ready herself to enter the world market.

Attract Foreign Investment

 

China has rapidly expanded its cooperation with world
organizations and other countries in recent years. Several
international assistance projects are now being carried on
in China. However, there are few foreign investments or
joint venture projects in forestry because of inadequate
attention to seeking foreign investment. In addition, there
are no specific regulations on foreign investment and joint
ventures in forestry. Forest road density is only one meter
of road per hectare of area which is far from sufficient and
most of the equipment and machinery in wood processing
plants are out-dated. To meet the expanding demand for wood
production in the 1990's, the replacement of old equipment
and the construction of forest roads should begin. However,
as the government is unable to provide sufficient funds to
meet all the aforementioned needs, the Ministry of Forestry
should develop sound investment regulations to attract foreign

investment.

52

Give Full Play pp China's Advantages

 

China's biggest advantage is its abundant supply of
labor. If combined with advanced technology and government
backing , China will be a strongest competitors in the world
market. China can now manufacture small scale wood processing
equipment at competitive prices. This equipment is welcomed
by developing countries. In spite of its obvious potential,
neither salesmen nor product catalogs have paid proper atten-
tion to this situation. An effort should be made to improve
the quality of products to move into the world market. In
addition, the factories producing the exported products
should be involved in this trade and kept well informed of
the situation in the world market to derive the greatest
share of benefit from such trade.

Salesmen and Businessmen Needed

In the near future, China is going to bring its wood
products into the world market and start forest development
projects in other developing countries. Many qualified
people wil 1 be needed to carry out the work. To do business
in world markets, China should have salesmen and businessmen
who have forestry and business knowledge and are fluent in
foreign languages. Now China lacks this type of person.
Business and marketing courses are suggested as additions to
the curricula of forestry colleges so that interested students
can have 2-3 years of forestry training and 2-3 years of
study in business and foreign languages. Another way to

fulfill this need is to send some forestry graduates to

53

business colleges for training. To serve the immediate
needs, interpreters who have worked several years in the
Ministry of Forestry can be trained in forestry and business
for 2-3 years. Business and marketing research offices
should be established in key foreign countries.
Improve the Quality pg Planting

A big plantation campaign was launched in 1980. Bearing
in mind that the success rate of plantations was only 31% in
the past 30 years, the plantation figures should not be
overstressed. Increased attention should be paid to the
quality of plantations. In addition, the importance of using
genetically improved seeds should be fully understood. The
Ministry oprorestry should put more investment in and pay
more attention to seed orchards and improved seed production
so that the percentage of improved seeds used in plantations
will increase as soon as possible. Seed users should not
only know the comparative prices of seed, but they should

understand the benefits of using improved seed.

CHAPTER IX

Conclusion

China has attained impressive progress in forestry
development in the past 35 years. One hundred and twenty
three million hectares of trees were planted in the open
lands during the period of 1950-1983, of which 38 million
hectares of these plantations have survived. In addition,
'L6 million hectares of planting were established on the
areas harvested from 1950-1982. As a result, forest
coverage in China has increased from 8 percent to 12
percent. The immense plantation program will change the
future sustained-yield harvest situation dramatically. In
addition to the annual output of 52 million cubic meters of
wood from natural forest, plantations will be able to sustain
annual outputs of 180 million cubic meters by 1994, 245
million cubic meters by 1999, 360 million cubic meters by
2009, and 404 million cubic meters by 2019.

Consumption of timber has increased steadily from 12.33
million cubic meters in 1952 to 52 million cubic meters in
1983. The per capita consumption of timber products is
about 0.5 cubic meters. It is expected that the timber
consumption will continue to increase in response to increase

of GNP, personal income, and population.

54

55

Undoubtedly, the governmentis 20 year-goal (1981-2000) of
quadrupled GNP and employee’s income increasing from 650 to
2,000 Yuan will increase timber consumption dramatically.
A higher rate of growth in annual timber consumption (4
percent) would increase consumption to 68 million cubic
meters by 1990 and 101 million cubic meters by 2000.

Timber-products output which increased from 567,000
cubic meters in 1949 to 52,320,000 cubic meters in 1983, is
expected to continue increasing. The physical supply of
timber from plantation and natural forest will be able to
reach 230 million cubic meters by 1994, 295 million cubic
meters by 1999, and 454 million cubic meters by 2019. If
the higher rate of growth in annual timber consumption
(4 percent) is obtained, China's timber consumption will
be about one-third of the sustainable supply of plantation
and natural forest that will be available» If the Chinese
government starts to pay more attention to industrial infras-
tructure such as roads, logging equipment, and processing
plants, there is a developing opportunity for China to not
only meet its industrial wood needs, but also to become a
significant exporter of forest products.

The Chinese government has these targets for the year
2000 : 1) 20 percent forest cover; 2) 100 million cubic
meters of timber output annually; 3) 12 billion cubic meters
of forest stock; and 4) quadrupled output value of the forest
industry. To accomplish the above-mentioned goals, a special

effort should be made to translate forest policy into laws

56

which would not be subject to quick change and to pursue the
development of capable and efficient administra-tion. These
aspects of policy are interrelated and interact with one
another. Good forestry policy lays a foundation for sound
forestry development, but it should be supported and protected
by the law to ensure it's continuation and effectiveness.
The establishment of laws relating to forestry development
should help to prevent interference from political movements
and changes in leadership. However, because good forestry
policies and their enforcement are carried out by leaders at
2x11 levels of government, it is important to have knowledgeable
and conscientious leaders working in forestry departments.

This paper shows that China has great potential in wood
production. If it continues to keep efforts concentrated
on plantations, China will not only completely change the
situation of wood shortage, but also become a major wood
exporting country by the middle of the 19905.

China, the giant standing in the East, will certainly
provide a large share of wood production as its contribution

to the world.

LITERATURE CITED

1)

2)

3)

4)

5)

6)

7)

8)

9)

10)

ll)

12)

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Anonymous, 1983. China Statistic Yearbook. China Statistics
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Anonymous,l976. Planting technology of major tree species
in China. Chinese Academy of Agriculture and Forestry,
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Anonymous, 1983. 1981 Yearbook of Forest Products Statistics,
Food and Agriculture Organization, United Nations, Rome.

Anonymous, 1982. Forestry in China. Forestry Paper 35; Food
and Agriculture Organization, United Nations, Rome.l%45-201

Anonymous, 1984. China forestry development project
preparation report. unpublished, FAO/World Bank, Rome.

Far Eastern Economic Review. August 20,1982.

Guan,Qunwed,l979. "The establishment and development of
Shelterbelts in China". In: Thirty Years Scientific

Research of Forestry in China. Chinese Academy of Forestry,
Beijing. P.119

Huang, Dongsen; Liang Yan, 1979. "The development of
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esearc of Forestry in China. Chinese Academy of Forestry,
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Jiang,Jianping; Zhu,Zhaohua, 1979. The present research

of Paulownia and future". In: Thirty Years Scientific
Research of Forestry in China. Chinese Academy of Forestry
Beijing. P.195

 

Johnston,D.R. 1980. Forestry in China I: Administration.
Commonwealth Forestry R. March, p.4l-52

Anonymous, 1984. A brief account of China's forestry.
Ministry of Forestry, Beijing. p.1-l9

Renmin Ribao. Feb 28-May 15,1984.

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13) Ross,lester, 1983. "Forestry in China today": Implications

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for the 19805. In: Agricultural and Rural Development in

China Today,selected papers for a Cornal University
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Wang,Kai;Zhu,Huanming, 1982. "China's wood-based panel
industry is in progress." Paper presented in Technical
Consultation on Wood-based Panel, FAO/UNDP.;L2

Wu,Zhonglen. 1979. "The introducing and domestication of
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