Research on the impact of COVID-19 on China¡¯s timber industry

author:China Green Times

The outbreak of COVID-19 has seriously hindered the development of China’s timber industry. A large number of companies are short of raw materials, labors and cash, and facing increasing transportation costs. Export orders of wood processing companies declined sharply due to the decreased port efficiency during the epidemic period.

Scholars from Beijing Forestry University have conducted a research to assess the impacts of COVID-19 on China’s timber industry and the impact of the macroeconomic measures adopted by the government. 

The research revealed that due to COVID-19, the average output loss for the timber industry is 2.23%, which is 1.75% higher than that of other industries. Accordingly, the export demand dropped by 2.93%. 

The macroeconomic measures adopted by the government include value-added tax reduction and injecting liquidity. The former proved effective in reducing losses but the latter failed to reduce the financing costs faced by the timber industry. 

The researchers made several suggestions. Firstly, the work resumption rate of the timber industry needs to be effectively increased. Secondly, the government should strengthen the policy support for export companies in the timber industry, especially for furniture companies. Thirdly, the tax for wood processing companies needs to be further reduced. Fourthly, the government should take measures to encourage investment in wood processing companies that are facing financing problems. 

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