Forest cover in mainland China is estimated to extend over 163 million hectares, approximately 17.5 percent of its landmass (Asia–Pacific Forestry Commission 2001: 6).
Due to Chinese forest policies, the area of forest cover has continued to expand since the early 1990s. In 1998, for instance, forest cover extended over only 130 million hectares or 13.29 percent of China’s landmass. The government aims to increase the forest cover to 19 percent by 2010 and 26 percent by 2050 (Stark & Cheung 2006: 16; Zhu, Taylor &
Guoqiang 2004: 12). China is home to a diverse range of plant and timber species. It is said that 10 percent of the world’s plant species can be found in China and that China’s biodiversity ranks eighth in the world (Wang 2002a: 491).
Much of China’s timber resources, approximately 46.7 million hectares or 25 to 28 percent, are forest plantations; it is said that China has one of the world’s largest areas of plantations.
These plantations are mostly made up of limited numbers of fast-growing, high-yield species so that as plantations and forest areas grow, forest diversity appears to be declining (Asia–Pacific Forestry Commission 2001: 6; Stark & Cheung 2006: 28; Zhu, Taylor &
Guoqiang 2004: 12). The fast-growing plantations mostly produce timber used in pulpwood production; plantations generally do not grow the large, high-grade logs that continue to be sourced from natural forests or are imported from other countries. Forest plantations are particularly extensive in Southern China, while the northwestern and southwestern regions mostly contain natural forests (Zhu, Taylor & Guoqiang 2004: 5, 13). A number of re- forestation projects have been implemented to combat erosion, desertification and sandstorms (Zhu, Taylor & Guoqiang 2004: 5).
It is estimated that in 2003 the annual production of industrial roundwood in China was 47.6 million cubic metres. In addition, it is estimated that approximately 35.7 million cubic metres were produced undeclared. The total roundwood production in 2003 is said to have been 79 million cubic metres, up from 75 million cubic metres in 2002 but much lower than production levels during the 1990s. This decline in production until the year 2002 was the result of depletion of forest resources and major logging bans introduced since 1998 (Stark
& Cheung 2006: 16; Zhu, Taylor & Guoqiang 2004: 13, 15). More recently, there has been a slow but steady increase in domestic log supplies in China, which is explained by ‘the maturing of tropical plantations and an easing of [the] logging ban in southern provinces’
(ITTO 2007: 40).
Illegal logging
Bans introduced on logging activities combined with reduced domestic production and ever increasing domestic demand has created ‘a conflict that could lead to a black market for timber’ (Zhu, Taylor & Guoqiang 2004: 3). Moreover, the high fees and taxes associated with domestic timber production in China are conducive to illegal activities that avoid the expenses and supply timber at much lower costs.
Table 12 shows that wood production in China is comparatively small and that most of the domestic production involves softwood logs. All types of timber produced in China, including softwood and hardwood logs, lumber and plywood show high levels of suspicious production, approximately one-third of the total production, irrespective of the type of wood produced.
Table 12: Suspicious wood production by type of wood, China, 2002 Production (’000m3) Suspicious (%) Softwood
Roundwood 37,900 31.5
Lumber 5,182 31.5
Plywood 3,648 31.5
Hardwood
Roundwood 20,200 30.6
Lumber 24,249 30.6
Plywood 18,513 30.6
Source: Seneca Creek (2004: 15–16)
Policies and legislation
China is a signatory to CITES, the World Heritage Convention and the Biodiversity
Convention, and has signed a range of other international and regional agreements. In 2001, the governments of China and Indonesia signed a memorandum of understanding to reduce illegal exploitation and exportation of timber from Indonesia to China. The Russian Prime Minister and the Chinese Premier issued a similar statement in November 2006 to reduce illegal logging in the Russian Far East.
Chinese domestic law relating to forests includes a myriad of laws and regulations. The two principal legislative instruments are the Environment Protection Law and the Forestry Law 1998. China’s Forestry Law 1998, first introduced in 1984, is the key document to manage and protect the country’s forest resources. This document advocates protection of the environment and sustainable timber production (Article 1) and seeks to control all logging activities through regulation of harvesting, planting, regeneration, and conservation. It also limits the annual quota of logging activities (Article 30), sets out responsibilities of those involved in the timber industry, and requires the industry to set aside funds for forest cultivation (Wang 2002a: 503; Wang 2002b: 126). The Environment Protection Law sets out the key principles for wildlife and species protection while recognising integration of
economic development. It seeks to balance exploitation of resources with protection (Wang 2002a: 501–502; Wang 2002b: 121–123). The Land Administration Law, enacted in 1998, further classifies properties for protection purposes and prohibits development in certain areas, including some forests (Wang 2002a: 511).
After many years of centrally planned forest and logging programs, the Chinese Government moved to fully liberalise the timber market in 1998 and introduced a permit system to control and monitor private logging operations as well as transportation of timber. The current
laws require licences setting out the conditions and quotas for harvesting for all logging activities as well as for transporting, processing and marketing timber (Zhu, Taylor &
Guoqiang 2004: 7–8).
Between 1995 and 2000, a new forest zoning policy was introduced, classifying all forest areas into production forests used for commercial timber production and ecological forests.
While some limited commercial logging is allowed in so-called ‘general ecological’ forests, the policy introduced a complete ban in key ecological forests such as protected areas, nature reserves and forest parks, and critical steep slopes (Wang 2002a: 496; Zhu, Taylor &
Guoqiang 2004: 6). The Chinese Government announced that it intends to significantly increase the number of nature reserves including World Heritage sites during this decade, thus further reducing the size of commercially exploitable forests (Wang 2002a: 495).
Furthermore, starting in 1998 China has, for the most part, banned the logging of mature trees throughout the country. As a result, many logging companies had to close down and hundreds of thousands of workers had to be laid off. Today, logging activities in China remain limited and instead the country relies almost completely on imports of timber and timber products from abroad (Stark & Cheung 2006: 15–16).
Moreover, the Chinese Government has imposed high fees and taxes on private forest production and logging, which can absorb 35 to 65 percent of the sale value of timber.
These expenses limit the profitability of the forest sector and are seen as a further disincentive to engage in logging or develop plantations, although some of the taxes are currently being reviewed (Zhu, Taylor & Guoqiang 2004: 7–8).
Offences and enforcement
Relevant offences relating to illegal logging and associated activities are scattered over numerous Acts and subsidiary regulations. The Forest Law 1998 contains the main criminal offences. Articles 23, 31 and 44 criminalise unauthorised destruction of forests and cutting of firewood in young forests and special-purpose forests. Illegal logging (referred to as ‘pirate felling of forests or other trees’) is prohibited (Article 39); a criminal provision for logging of rare and precious trees exists in Article 40. Article 41 sets out a special offence applicable to officials who issue logging permits without proper authorisation. A further offence for corrupt officials is set out in Article 46 if they are found ‘abusing power, neglecting duty and indulging in self-seeking misconduct’. Those buying or selling logging permits unlawfully may be criminally responsible under Article 42. Forging permits or other forestry documents is an offence under Article 42. Enforcement of CITES provisions and the trade in endangered species rests with customs officials under the direction of the central government (Wang 2002a: 508).