Market Overview

Since 2003, FII and the Canada Wood Group have worked together in China to create a market for wood construction and grow the market share for BC wood products. Exports have grown from a very low level, rising to become one of the “big three” export markets for BC forest products (alongside the U.S. and Japan).

With wood construction now taking hold commercially, market development efforts are focused on leveraging China’s carbon reduction and green building priorities and positioning BC’s sustainable wood products in emerging segments.

Photo: Nanchang Lotus Book Store, Hubei province | Credit: JinagXi Guojin Green Building Technology Company

Key Stats

0

%
of all BC forest product exports go to China (on average over the past 5 years)

0

%
of BC's softwood lumber exports go to China (on average over the past 5 years)

0

+
codes and standards favourable to wood construction have been advanced since market development efforts began in China

Why China?

  • A large, growing economy
  • Increasing reliance on imported lumber and wood products
  • Broad interest in green building technology
  • The shift towards prefabrication that uses advanced wood systems
Photo: Canadian delegates visit Rugao factory demonstration of Shanghai Electric Matechstone Engineering Group (MTS), Jinagsu province | Credit: Canada Wood China

Market Priorities

  • Focus on government relations and relationship building with key stakeholders to expand opportunities for higher-value BC wood products.
  • Position wood in response to new policies of the Chinese government to encourage low carbon, energy-efficient and prefabricated construction in China
  • Position wood construction in high priority segments such as cultural buildings, tourism, wellness and elderly care facilities, hybrid construction (wood mixed with concrete/steel) and mid-rise and taller wood construction
Photo: Hemlock furniture manufactured by Foshan Yiyuan, Guangdong province | Credit: Canada Wood China

Strategic Approach

FII and the Canada Wood Group have worked together since 2003 to develop and grow the market share for BC wood products in China. The market strategy concentrates on higher-value market segments, where product differentiation provides a comparative advantage for BC’s wood products. Activities focus on increasing the value of wood sold, growing wood’s acceptance in construction, and positioning Canadian wood products as high-quality, environmentally friendly and sustainably sourced.

Photo: Xiawei Bhen Boat Rooms on the Fuchun River | Credit: Canada Wood China.

Featured Projects

Government relations— advancing mutual low-carbon priorities

FII China recognizes the importance of maintaining relationships with government stakeholders to influence wood’s role in policies and priorities related to energy efficiency, prefabrication and green construction. While maintaining national-level involvement in areas such as building codes and environmental policy, there is also an emphasis on engagement with local jurisdictions that must develop and implement the strategies to show measurable progress towards national targets.

With China’s urbanization policy now focused on the sustainable development of smaller and mid-sized cities, a growing demand for mid-rise buildings and low-carbon solutions is creating new opportunities for wood construction. Showing high-potential municipalities and targeted provincial-level agencies and organizations how to meet low-carbon construction policy objectives through wood use is a key focus of FII China. This approach requires leveraging the credibility which FII has built over the years through a range of initiatives, and an ability to demonstrate relevance to local policy targets, but pays off through expanded wood use and recognition of BC’s sustainable wood products.

Photo: Guangzhou Forum | Credit: FII China

Something old, something new

Enshi, in central China, is a major cultural region that attracts more than 20 million tourists a year to learn about the Xuan’en people and their historical use of wooden stilt homes, or diaojiaolou.

Wanting to upgrade tourism facilities, officials looked to mass timber as a modern approach to their centuries-old reliance on timber construction. Based on stakeholder relations established through FII China, they connected with Canada Wood for expertise and access to BC softwood.

The Xuan’en project includes a large museum, mass timber bridge built from Douglas-fir, and other facilities covering 6,000 square meters. The extensive use of wood goes beyond historical tradition to recognizing the benefits of mass timber in public facilities as a sustainable, green building solution.

Revitalizing tourism and hospitality facilities in rural China is a major part of China’s green building program. Canada Wood is using the Xuan’en project as an example to other regions of how mass timber can be used to achieve cultural, green building, and economic development goals.

Photos: Enshi Xuan’en County Centre Pigeon Flower Bridge | Credit: Canada Wood

VIP status for Canada at World Forest Industry conference

Canadian officials received VIP status, including sharing the podium at the opening event, at the World Forest Industry conference in Nanning City, cohosted by the National Forestry and Grassland Administration (NFGA) and the Guangxi Zhuang Autonomous Region Government. Being granted VIP status at the conference signaled a strong endorsement of Canada’s contributions and expertise in sustainable forest management. Additionally, it reflects the close working relationship that FII China and Canada Wood have developed with local officials, providing facts and information on responsible forestry in BC.

The team developed a Canada showcase at the trade show staffed by Canada Wood and industry representatives to promote Canadian mass timber products and showcase demonstration projects.

Throughout the event the delegation was able to connect with national officials on forestry management and conservation, environmental protection, and forest products. This engagement underscored Canada’s leadership in sustainable forest management and leading technologies in wood construction in China.

Photo: World Forestry conference opening ceremony | Credit: Canada Wood

Reducing barriers to BC wood sales

Addressing phytosanitary standards is an important part of the China market development program, as barriers or delays can seriously hinder the competitiveness of BC wood products.

A case in point is the issue of pinewood nematode (PWN)—a parasitic worm that causes the disease pine wilt. Citing worries about imported wood carrying PWN that could then infect local forests, China introduced restrictions on softwood lumber imports from Canada and five other nations in 2022. While this did not ban Canadian imports, it added substantial time and cost to the delivery of goods, reducing the competitiveness of BC wood products.

FII China has been involved in ongoing engagement with Chinese officials, to reassure them that Canadian quality control standards—including heat treatment of S-P-F shipped to China—can deal with the PWN.

In 2024 this included a trip to BC by Chinese officials to review these approaches. The officials concluded that the Canadian heat treating approach has the potential to set a global standard in treatment and provide the basis for reconsidering import restrictions on Canadian wood products.

These findings bring the issue closer to resolution, a situation that FII China will continue working on until the issue is resolved.

Photo: PWN Barrier CAF Delegation in B.C. learning about Canadian treatment standards | Credit: FII China