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The output value of wood-based panel products was about Freepik
RMB764 billion, an increase of 15 percent year-on-year. The
consumption of wood-based panel products was about 318
million cubic metres, an increase of 10 percent year-on-year.

In addition to Beijing, Tianjin, Shanghai, Tibet, Qinghai,
Ningxia, the remaining 25 provinces had wood-based panel
production in 2023. Eight provinces had a production of more
than 10 million cubic metres. EUDR
Production growth in Central and South China regions was A press release from the European Parliament has confirmed
noted with Guangxi exceeding Shandong to become China's implementation of the EU Deforestation Regulation (EUDR) will
largest wood-based panel production province. be delayed by a year to December 2025 “so that companies
At the end of 2023 there were more than 10,100 wood-based can comply with the law that ensures products sold in the
panel manufacturers in China, down 17 percent year-on-year. EU are not sourced from deforested land”.

Through the continuous promotion of supply-side structural The press release says: “In response to concerns raised by
reform the structure of China's wood-based panel industry EU member states, non-EU countries, traders and operators
has accelerated its adjustment, low production capacity has that they would not be able to fully comply with the rules if
been eliminated and enterprises that have lost competitiveness applied as of end of 2024 the Commission proposed postponing
have ceased operation. the application date of the deforestation regulation by one
Although the number of wood-based panel enterprises year. The European parliament agreed to this postponement
has decreased, the average production capacity of enterprises as well as other amendments with 371 votes to 240 and 30

is steadily improving and new production lines were mostly abstentions.”
large-scale and technologically advanced. An amendment, introducing a “no-risk” country category
In order to enhance market share and drive the development into the law was approved and the criteria for risk assessment
of wood-based panel enterprises the scale of top enterprises included. The press release says “no risk” is defined as
continued to expand. “countries with stable or increasing forest area development”
By the end of 2023, there are nearly 235 large-scale wood- and such countries “would face significantly less stringent
based panel production enterprises and enterprise groups. As of requirements”.
August 2024, there were 12 wood-based panel manufacturers This change has sparked criticism from environmental
with a total production capacity of more than one million cubic groups for undermining the regulation’s effectiveness. Critics

metres, of which five enterprises have a production capacity warn that the “no risk” category could open the way for
of more than two million cubic metres per year. resource laundering, where products from high-risk countries
The total import and export volume of China's wood-based could be routed through no-risk nations,
panels was 15.75 million cubic metres in 2023, an increase As of 15 November, no formal statements from the
of 1.2 percent; The total value of imports and exports was main timber trade associations or groups have been seen.
US$6.761 billion, down 15 percent year-on-year. Environmental groups were quick to express disappointment
China still is the major supplier of wood-based panels but at the delay in implementation and of the introduction of the

in the context of the overall global trade China's wood-based no-risk category of countries. FDM
panel industry needs to overcome many challenges. ENQUIRY NO. 6101