Catastrophic blizzard and icy rains, which covered half of
China in mid-January, have caused great losses for
China’s forest industry. According to the latest statistics
from 19 provinces, autonomous regions and
municipalities, 186 million ha (279 million mu), 1,781
state-owned forest farms and 1,200 nurseries were
negatively affected by the weather. About 760 tons of tree
seeds and 10 billion seedlings were frozen and 30,000
animals and other wildlife in protected areas were found
injured or dead. The direct economic losses to the forestry
sector amounted to RMB57.3 billion yuan with 2.6 million
forestry staff, other forest farmers and people in Hunan
Province severely affected. Due to the recent low
temperature, it will take some time before the snow melts,
causing further losses to the industry. The disaster has four
main impacts:
(1) Forest losses accounted for a high proportion of total
economic losses. According to a survey from eight
provinces, forest losses accounted for 40-60% of the
disaster losses in each province. The direct forest
economic losses in Jiangxi Province alone amounted to
about RMB11.27 billion yuan, accounting for 41% of the
total RMB27.3 billion yuan of economic losses. Forest
losses in Guilin of Guangxi Province and Qiandongnon
prefecture in Guizhou Province accounted for over 60% of
local disaster losses.
(2) Seedlings, bamboo forest and newly planted forests
were severely impacted by the blizzards, causing a high
mortality rate in seedlings. In Hubei Province, about 2.59
million ha (3.88 million mu), or around 80% of the total
bamboo forest area, was affected. About 75% of seedlings,
bamboo and new forests in regions of Danjiang Reservoir,
Fushui Reservoirs and the Three Gorges Reservoir were
also impacted.
(3) Economic losses for farmers were also high. Forests
established as investments for state and local people
suffered heavy losses. Over 80% of the collective-owned
plantations of Moso Bamboo, Slash Pine and Oil tea
Camellia suffered the most serious effects of the blizzards.
(4) Finally, the calamities are expected to cause secondary
disasters. Due to the icy conditions and snow, there is a
greater chance of landslides, mud-rock flow, forest fires,
forest pests and disease.
The disaster is expected to impact overall demand and
supply of forest products. There is expected to be a sharp
decrease in supply of timber, bamboo, resin and camellia
oil. This is likely to heighten the gap between timber
demand and supply and dampen the overall operation of
forest enterprises, thus impacting the employment of
millions of people as well as the demand and supply of
forest products over the next few years.
Exports through Guangdong Port rise 34% in 2007
Furniture exports through Guangdong Port in 2007 rose
34% to USD9.3 billion, 40% of the national total.
Furniture exports through Guangdong are generally
exported to the US and the EU, which receive 60% of the
total furniture exports from Guangdong. Furniture
exporting enterprises are looking for new opportunities in
ASEAN markets. Furniture exports to ASEAN markets
have increased 120% to USD120 million in 2007.
China Customs has reported that foreign capital furniture
enterprises make up 50% of furniture enterprises in
Guangdong. However, private enterprises have developed
rapidly, with the furniture export value of private
enterprises rising 52% to USD2.58 billion in 2007.
Although furniture exports have been growing, furniture
production and processing enterprises have faced pressure
as a result of national policies established in 2007. One
was the tax rebate policy, under which tax rebates for
furniture being were reduced from 13 to 9% and wood
products to 5%. The other was a change brought about by
the Chinese government to revise a catalogue of prohibited
commodities in the processing trade to include 17 kinds of
furniture such as bedroom furniture of lacquered wood and
other furniture of rosewood.
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