- China’s domestic supply of industrial wood has failed to keep up with its industrial manufacturing capacity. To meet this deficit, China relies on significant volumes of wood product imports. Logging in China’s natural forests is prohibited, and domestic plantation-grown raw material (primarily poplar, eucalyptus, masson pine, and Chinese fir) are generally considered low-risk.
- Many similar temperate natural forest species are found in the Russian Far East, North America (U.S. and Canada), northern / eastern Europe and northern China, such as oak. There is a demonstrated risk of laundering high-risk Russian Far East and Ukrainian species and falsely declaring them as having been harvested in northern Europe, North America or even China (pre-2017).
- More than half of the timber used in Chinese-made wood products has been imported from other countries – both from high- and low-risk sources.
- China does not currently require traceability of wood products through its supply chain. The size and nature of the processing industry means that timber is regularly mixed from multiple sources with no obligation to trace back along the supply chain. This may change soon pending the forthcoming Implementing Regulations for China’s 2019 Forest Law, or further National Forest and Grasslands Administration (NFGA) departmental rules based on the 2019 Forest Law.
- Enforcement actions in the European Union (EU) and U.S. have demonstrated the risk of illegal timber, laundering and species mis-declaration on products manufactured in China.
Read more by downloading the China Timber Legality Risk Dashboard here.
On 1 June, the China Banking and Insurance Regulatory Commission (CBIRC) issued a new set of green guidelines. These lay out detailed expectations for banks and insurance companies to identify, monitor, prevent and control their environmental, social and governance (ESG) risks.
The new Green Finance Guidelines are a positive step forward, especially in their potential to divert finance away from not-so-green businesses. But can they help shift the billions that Chinese banks and other investors put into companies linked to the destruction of climate-critical forests?
Between May 2020 and March 2022, China imported from Mali 220,000 trees’ worth —148,000 tons — of a type of rosewood known as kosso despite a ban on its harvest and trade in the troubled West Africa nation, a report released Wednesday by the Environmental Investigation Agency (EIA) found.
Wildlife trafficking from Mexico to China receives little attention, but it is growing and threatens biodiversity. Moreover, while the connections between wildlife trafficking and drug cartels are sometimes exaggerated, in Mexico, wildlife trafficking, drug trafficking, and money laundering have become intertwined. Attracted by China’s enormous appetite for wildlife products and in contact with Chinese traders supplying precursor chemicals for the production of illegal fentanyl and methamphetamine, Mexican drug cartels are increasingly muscling their way into the country’s legal and illegal wildlife trade.
China’s forays into Africa’s huge forest resources and indulgence in illegal trade disregarding the environment could lead to a disaster of monumental proportions.
A recent investigative report by international NGO Environmental Investigation Agency (EIA) has claimed that China’s illegal imports of rosewood has led to massive devastation of Malian forests besides serving as a conduit for ivory smuggling. Western African state of Mali has become one of China’s leading rosewood suppliers .
VIETNAM, August 27 – HÀ NỘI — The US Department of Commerce (DOC) has not yet issued the final determination on the imposition of anti-dumping and countervailing duties on certain hardwood plywood products and veneered panels exported from Việt Nam.
The Việt Nam Timber and Forest Products Association (VIFOREST) has confirmed that the DOC on April 15 extended the deadline to issue a final determination to October 17.
The DOC initiated the anti-dumping and anti-subsidy investigation on hardwood plywood from Việt Nam on June 17, 2020, to enforce the trade remedies measures on Chinese hardwood plywood.
The US is currently applying anti-dumping of 183.36 per cent and anti-subsidy duties from 22.98 per cent to 194.9 per cent on hardwood plywood products from China.
On July 25, DOC announced its preliminary determination that hardwood plywood exported from Việt Nam, which was assembled in Việt Nam using hardwood plywood imports sourced from China, were products of China and were subject to the anti-dumping duty and countervailing duty orders on hardwood plywood from China.
Timber Trade Federation (TTF) issued import warning for TTF-members on birch plywood from the Far East.
“It has been nearly six months since Russia’s awful invasion of Ukraine, with few signs the conflict is going to abate anytime soon.
Though grain exports began to leave Ukraine this week for the first time since the war began, international sanctions on Russia remain very much in place.
Along with maritime sanctions and restrictions on Russian payments, the most significant sanction for our industry is the Russian timber import ban.