TED Case Studies - Green Forestry in China

China Wood Export's Effect on the Environment


TED Home Page About TED Research Projects SortCases
TEDCases Issue Papers Site Index

I. Identification

1. The Issue

Ever since the economic reform in 1979, Forestry has been one of the most rapidly growing sectors in China. Furthermore ,the forestry industry contributes more parts of  the gross domestic product for China , Despite the significant contribution to the economic growth or development , Forestry has nevertheless led to massive destruction or loss of the luscious primary forest as well as the increasing rate of extinct animals habituating in these forest .in light of the deforestation ,There have been a growing concern to protect the natural resources of China .Fox example the forest and its habitats .This case study will look at the impact of China’s wood exports and how relates to the deforestation in the country .I will examine the deforestation also ,as it impacts species that live in area .such as tiger .The physical and economic effects will be discussed further in detail by the following paragraphs .

2. Description

hlite_1.gif (349212 bytes)

According to the PRC forestry report ,the volume of wood is nearly10,572 billion cubic meters .It was further revealed that approximately 35% of China is made up of thick luscious primary forest .These forests are located in 2 main areas .They are namely the northern region of China that includes the northeastern and northwestern areas .The other one is the southern region of China particularly the southeastern area .It was further noted that the northeastern region is the largest forest in China .The northeastern region includes the HELIONJIANG , JILIN province and INNER MONGOLIA that contributes to 3.5 billion cubic meters of the total forest .The predominate species of the plants habituating in the forest are as follows :

  1. Larch
  2. ELM
  3. Red Pine
  4. Birch
  5. Chinese Linden

The wildlife that are presently habituating these forest consist of tigers ,bears ,and the gold monkey .these animals have been listed as "first grade protected wild animal" on the national level .

The product derived from the forestry industry are namely furniture ,paper and pulp .these products are then exported to other countries such as Japan ,United States ,South Korea and other southeast Asian countries .

Forest is closed relate with economic:

Humans have long had an ambivalent relationship with forests .Trees play a major role in the spiritual and artistic heritage of almost all cultures .China is one of the world’s largest wood export country .A certain tropical hardwood export to the southeast Asian and the United States and globally for a high commercial return Approximately 70%of wood products and paper on the global market in the southeast Asian .In China the market for timber has grown enormously in the last few years .For example between 1990 and 1994 world softwood production rose by 28% and hard wood production by 55% ,the production had risen to 70% by the 1990s .Because people is increasing higher-quality housing and have enough money .the market for lumber , paneling , better furniture and other products demands expand .so furniture industry grown rapidly in the world .Rising personal incomes have given consumers the means to improve their homes with wood products .Although sales of higher-cost woods like ash ,maple ,cherry ,and oak will eventually expand .Through PRC economic indicator :

1994 – 1996 .normal GDP : 549. 702. 830

Real GDP growth (pct)      :11.8. 9.5. 10.0

Balance of payment and trade total export (FDB):4/ 121.0 .148.8 .150.

 
China’s timber trade


Supply (1998 timber exports )

  Logs  timber plywood other total total value ($Billion)

China

5.3

2.5

3.4

2.3

13.5

3.5

Demand (1998 timber imports )

Japan

15.4 

7.8 

4.1 

3.0 

30.3

9.9 

Export output have risen from lumber .especially in northern China ,HELONGJIANG and JILIN province are the main contributors to the economic growth increase 15% from 1990 to 1996 .their export products including plywood ,planning board ,flooring ,integrated timber .planed veneers ,wooden toys ,furniture ,tools , a lot of wooden engraving artistryand other products which are manufactured according to the client’s requirements . Below are the pictures of the products produced by the wood from China.

image 2.gif (45330 bytes) image 3.gif (19391 bytes) image 4.jpg (19773 bytes)  image 6.jpg (25367 bytes)  image 7.JPG (29140 bytes)
image 5.jpg (42084 bytes)

Based on the 1997 economic data ,It has been revealed that China total export of wood based products to us and Hong Kong yields $72.8 billion and $10.3 billion respectively .This represented 18.8% increase in value of Chinese .Presently ,China has been labeled by United States as their fourth largest importer .

Furthermore , imports by Japan from China are primainly wood and wood related products .This was further supported by the estimation of approximately 1.141 million shipments from China .[trade data from the Japan department of commerce shows 100 listing of 2 –digit codes of commodities imported from China]. The composition of the 10 largest imports from China with values in excess of $1.billion .but now the composition of china wood export to the other countries has changed dramatically over the years .most of the decline come from falling sales of softwood logs (which made up 98 per cent of China exports in 1988) most of the recent growth has stemmed from vigorous sales of hardwood ,logs ,lumber , and veneer .

Although exports of wood and their related product has brought great economic value for China .However the state council indicated that government had identified the damaging environment effects such as the annual flood effectuated from deforestation ,has decided to adopt appropriate actions to discourage deforestation one such action could be the immediate of logging activities in China as well as the cancellation of existing timber contracts .

The order was issued in response to evidence that the regulations on cutting and exporting timber were being widely flouted .The products will have to passed by the forestry service so as to ensure that they’re not dressed wood which could be used by importers as raw materials from this ban was made ,China’s wood export average tariff rate declined from 35.9 percent to 23 per cent .and then the government maintains that it will reduce this average rate to 15 per cent by year 2000 .

Another economic problem is impact on forestry workers ,if the government obey this policy loggers could be loss jobs in the timber industry .some in China’s more impoverished areas .some of these people could be re-employed in reforestation and sustainable forest management ,but most would be forced to find other jobs .the slump in China’s economic growth ,growing unemployment and perhaps most importantly communist party concerns that higher unemployment will result in social .instability will make implementation difficult .The number of forestry logger fell from around 53,000 to10,000 between 1988 and1996 .and before the ban was made ,many local government (and local officials) get 80-90 per cent of their revenue from local government timber companies , this order was established ,some central and provincial department income should be drop as before so illegal exports of timber are still continue their shipped though border .

Forest effect physical environment included two parts of natural diseased and wildlife

Although deforestation brings immediate short-term gains to needy farmers and substantial profits to timber concessionaires, it generates long-term losses to the environment-of the diverse and protean forest ecosystem itself;-of habitat for unique animal and plant species;-of livelihood for forest-dwelling ethnic groups and of watershed and nutrients for a larger ecological system.

China's forest resources have come under increasing pressure as the country's economy develops and its population expands. Mature stands of timber are growing scarce, forest cover only 330.4 million areas(13.9 percent) of china land area, and cutting and soil loss upstream is seriously problem, most of people suggested what we should stop using timber. Because it has brought increasing determined effects to our society and environment.

Every 70,000hectares of forest that is lost, a natural reservoir that can store 1 million cubic meters of water is lost, although the peak flow rate of the Yangtze at si cuan this year is below historic highest, but the destruction of forests resulted in natural water storage loss and silting of rivers , lakes raised the level of the river further, the encroachment of land-hungry farmers on lake reduced the capacity of the environment or absorb flood waters. Dongting lake, a major regulator of Yangtze floods shrunk from 6000 square kilometers in 1700 to 4350 square kilometers in 1949 and by another third to just 2820 square kilometers by 1980. Until 1990s, increased silting deposits 150 million tons of mud on Hu Nan province river and lake bottoms every year, more silt and less water storage capacity in the Yangtze River basin means that even with less water, flood can become more serious that ever before, silting makes floods much worse, for example, the 1958 yellow river floods crested at a flow rate of 22,300 cubic meters per second, nearly forty years later. In 1995, after silting had raised the river bed by 90 centimeters, a crest of 7600 cubic meters per second, just one-third the 1958 flow rate, but even so the water reached the highest level ever, once several Yellow River dikes broke under the strain, 3.43 million mud (230,000 hectares) were drowned and over one million people were harmed by the disastrous 1996 Yellow river.

As the extent of deforestation increases over past decade, it consequently led to flooding. The severe flooding often occurs in china, the most densely populated ten percent of Chinese territory which produces 70 percent of its agricultural and industrial product lies below the flood level of china's rivers. For example in1998, the flood's have claimed the lives of three thousands people and destruct the country telecommunication lines and transportation links. Threatened by food shortages seriously threatening the rice crop. Especially in HuBai and JINGXI two of province were damaged: killed people nearly(2000 person); devastated (1500) homes and destroyed(870,000) hectares of rice fields and at least kill house animal(500).

This disastrous flooding resulted from long-continued deforestation.

Another problem is about wildlife such as tiger in china.

we have 40% the wild tigers, but the tiger population have decreased to an average of 30% during the years, almost on the extinct is Northeast tiger. China has a few dozen left in which conservationists don't expect them live past the next few years. however the south china tiger's are virtually extinct, with scatter species estimated at fewer than 50 and the indo-Chinese tiger with approximately 3100-5300 still living is also specialized to be threatened due to habitat loss and poaching.

China, south Korea and Taiwan are the leading tiger consuming countries, so tiger population have been developed not only by habitat loss and persecution as enemy, but also by illegal hunting, because tiger are demanded by smugglers and medicinal traders.

We know that the tiger is a source of healing power, almost every part of the cat is traded for large sums of the money. Affluent customers pay as much as $320.00-$2000.00 for parts of the tiger, some believed that into year bones cube rheumatism and enhance longevity. It can be made into kind of Chinese medicinal that is, Hu Gu Sexiang with tiger and musk, it is very expensive, it is skin can be transferred into second hand cars and cost($15000); the penis makes penis soup and it is said that increased ones, prowess; the whiskers are potent poisons/strength and the pills made from the eyes purportedly calm convulsions, but though deforestation increasing, there was danger of extinction of the tiger in china.

However, although tigers are being used china for medicine the Chinese government has always stressed the protection of tigers. In the 1960s, the tiger was wasted as "first grade protected wild animal" on the national level, in order to preserve the tiger species.

In this connection, protection of wildlife specifies is a long-term arduous task for the Chinese people, with many difficulties and problems waiting to be dealt with.

In conclusion:

According China's environment protection administration report indicate:

1.The strongest EL NINO on record in spring 1998 continuing into summer of 1999

2.The abnormally high pressure zones in the subtropics from November 1998 to April 1999 .

3.The most serious snow disaster of the century on the Qinhai -Tibet plateace from November 1997 to February 1999

So we can see the above important informations that the natural diseased and wildlife extinct problems continue in China .

Some chinese oceanographers and mitiorologests see the EL NINO Ocean warming and LA NINA Ocean cooling phenomena as an important cause of the heavy flood of Yangtze basin 1998 . As well as of a global short term climate abnormality .For a very big flooding ,other important factors are involved such as environmental degradation ,soil loss and inadequate flood prevention capacity along the Yangatze.All there causes play a role in the flooding in China.so chinese leaders have known the increased frequency of EL NINO and abnormal weather,and flooding has anything to do with gobal warming.

So the chinese government and public now draw from the floods of 1998 may well increase public awareness and priority.The government places on issues such as environmental protection and global climate change.chinese leaders make more likely the success of a five year used 2 billion massive reforestation and timber production cutback plan.

The Chinese government reforestation program include ten shelter forest projects that will project old growth forest(and the biodiversity of the forests), develop sustainable forestry, and cut the Chinese forestry work force by one million and its timber production by 10 million cubic meters annually to reduce flood risk.

The reforestation plan, originally budged at RMB 45 billion from the central government to be matched local governments, has been scaled back to a RMB20 billion five years.

The plan, now in its pilot stage in Sichuan province, will get into full implementation next year, the plan would sharply reduce timber cutting by state timber companies, including areas of southwest and Northeast china where the last old growth forests are now being cut, reforestation would not only reduce flooding. There would be important advantages for biodiversity since many endangered species live in china's forests.

Economic control government is restricting the exports of logs and timber to reduce the danger of using up all of china's natural resources for wood.

To each in its own perspective and depending on which angle one looks out, it may be that china's efforts to keep the economic trade of wood and wood-related products alive and yet retain its natural resources by much of its governmental policies using be effective to a certain degree.

3. Related Cases

   CHINCOAL case

   PHILWOOD case

   USCHIN case

   MALAY case

   THAILOG case

   BRAZIL  case

   CHIPKO case
 

   Keyword clusters:

   1.Impact                              = CHINA

   2. Bio-geography                 = Tropical and temperate

   3.Environmental problem =DEFORESTATION

4. Draft Author: Tian Yuan(July , 1999)

II. Legal Clusters

5. Discourse and Status: agree and disagree (impress and allegation)

6. Forum and Scope: CHINA and unilateral

7. Decision Breadth: 1

8. Legal Standing: law and some policy

The environment protection law of PRC is the basic law of environmental protection in China we are set up environmental protection organization and achieve responsibilities to some extent.

 Article 1: this law is formulated pursuant to Article 11 of the constitution of peoples Republic of China, which stipulates that" the state protects the environment and natural resources and prevents and eliminates pollution and other hazards to the public."

 Article 3: the term environment used in this law encompasses the air. water. land. mineral resources. forests. grasslands, wild plants and animals, aquatic life. Places of historical interest scenic sports. hot spring, Resorts and natural areas under species protection as well as inhabited parts of the country.

 Article 17: no enterprise or institution that may pollute the environment may be built near living quarters in cities and towns or beside protected areas of water, places of historical interest, scenic spots, hot springs, resorts or natural areas under protection. As for those already existing. Measures should be taken to control their pollution, to readjust them, or the remove them to other sites in a given period.

In environmental protection law allows the state council of PRC. Seeing the clear connection between clear cutting and soil loss upstream and the yangtze river floods, on August 5 issued the emergency orders; protect forest resources; stop forest destroying; agricultural development and illegal occupation of forest land; the state council ordered all levels of government to strengthen protection of forest resource and to halt forest destruction in the name of development of new housing according to the order, some areas have fallen into such vicious deteriorating cycles that the forest can no longer reproduce itself and the natural environment is destroyed, the order calls for immediate stop to all cutting in all protected areas no matter what the pretext or what level of government authorized the cutting; the order call for the restoration of forests which have been damaged by illegal cutting, and illegal clearing or forestland for agriculture by the year 2000. All forestry regulations must be rigorously enforced, all construction projects involving forestland are frozen for one year. If use of forest land is needed permission must come form the state council, any responsible person or leader violating, this order will be severely punished. All provinces and municipalities directly under the central government must report on the implementation of this order by the close of 1998.

Illegal cutting of forests, including in nature preserves, by timber companies operated by local government occurs throughout china. These illegal operation by local government are one factor behind the environmental degradation that has worsened the flooding, many local governments depend upon forestry for as much as 90 percent of their revenue. Local government timber companies often disregard frequent state council orders.

As well as the criminal provisions on forestry provision. Of the new PRC criminal code which went into effect on October 1 1997. Although Chinese environmentalists have discussed flagrant. Violations with embassy officers, only recently have these violations by local government been reported in the press, for example, the summer 1996, student trip to save the golden monkey habitation Deqin prefecture, YUN NAN province was widely praised in the Chinese press, but the fact that it was the local government owned timber company that did clear-cutting in a nature preserve went unreported.

III. Geographic Clusters

9. Geographic Locations

a. Geographic Domain: ASIA

b. Geographic Site: EAST ASIA [EASIA]

c. Geographic Impact: CHINA

10. Sub-National Factors: NO

11. Type of Habitat: TEMPERATE AND TROPICAL

IV. Trade Clusters

12. Type of Measure: Export ban and regulatory aids

13. Direct v. Indirect Impacts: Direct

14. Relation of Trade Measure to  Environmental Impact

a. Directly Related to Product: YES. WOOD

b. Indirectly Related to Product: YES MANY

c. Not Related to Product: NO

d. Related to Process: YES DEFORESTATION

15. Trade Product Identification: Furniture

16. Economic Data

I: agriculture and forestry accounted for 51.7% of produced international income in 1996 and employment was about 200,300

II: The World Bank have approuned due first phase crdit facilitices. Nation Aforestation project ' NAP' for year 1990 with total investment of US$ 5 billion. The area will be from north part of China from north of Liao Ning to south Hai Nan ,16 province,300 areas shu feng chang ling,totaling 1.37 millon hectare to bulid.

The world Bank Second phase credit facilitices tatalling US$ 30 billon for year 1991 to 1997 which is allocated for Forest Resource Development and protection Project, 'FRDPP' The purpose is to bulid 0.62 million hectare artificial forest and 0.28 million hectares multi -purpose reseved forest in China. This will speed up the construction of artificial forest and reserved forest and the necessary modification can be implemented . In addition, the level of techonolgical and managerial aspects can be enhanced and the first industry will be increased as well as humanity benefits.

17. Impact of Trade Restriction:  MEDIUM

18. Industry Sector:  WOOD

19. Exporters and Importers: MANY AND CHINA

V. Environment Clusters

20. Environmental Problem Type:Pollution land and Deforestation

21. Name, Type, and Diversity of Species

Name: Many

Type: plant/animal/ mammal

Diversity: NA

High degree of biodiversity in species type for this region, deforestation has eliminated habit for elephant., bears, tigers and recently discovered the rare golden monkey.

The Chinese population has rapidly growing so that many land and agricultural increase, and then forestry reduced, it related the problem of the wood industry.

22. Resource Impact and Effect: High and scale

23. Urgency and Lifetime: Medium and 20-30 years


Scientists predict that by the year 2030, at current rates of deforestation. China will no longer have forestland will have to import timber for another country. Thus, China needs to find new alternatives to control logging, or implement ways in which the environment and people are not effected so severelly.

24. Substitutes: Recycling and conservation


Pulp. Paper and wood products will soon consume over half the worlds annual commercial cut of timber, on one particular use of trees: the pulp and paper trade, at present, the bulk of pulp production occurs in a few major northern countries, the north continues to dominated paper production with attributing over 70 percent of output to the industrialized nations.

 However most paper is used for short-term or once- use purposes and therefore ends up in the waste stream, so most environmentalists' responses to pulp and paper problems have been to suggest reducing consumption and increasing-recycling, while important, recycling itself  has environmental side effers. Paper recycling can certainlly offer substantial resource savings.

Recycling paper provides economic and environmental benefits by :
 

When one ton of recycled paper uses:64% less energy, 50% less water,74% less air pollution. It wii saves 17 trees and creates 5 times more-jobs than one ton of paper products from virgin wood pulp.

It is estimated that approximately 1.2 million tonnes of waste paper were recovered in China in 1997/1998

73%-was used to manufacture packaging grades much of the packaging on supermarket shelves is made from recycled paper.
10%-was exported mostly to Southeast ASIA.
7%-was used to manufacture newsprint.
5%-was used to manufacture printing and writing papers,such as stationery and photocopy paper.
3%-was used to manufacture tissues.
2%-was used for insulation, filler for doors,animal litter and potting mixture.

China's waste paper utilization rate for 1997/1998 was a record 28% per cent. In comparison,examples of overseas utilizzation rates were:

Australia             56%
North America   30%
Western Europe 40%
Japan                 53%

On average,we can see that waste paper accounts for over 70 per cent of the raw material used to make packaging paper in Australia.This rate is close to the technological limit.So most of chinese scientists still seeded new methods to solved this recycling problems,in order to rapidly increase the waste paper of recycling speed to achieve manufactures and industries needs.
 

VI. Other Factors

25. Culture: NO

26. Trans-Boundary Issues: YES

China's borders with South Korea, Japan and Russian, so they are not easily patrolled and   prevent for illegal trans-border shipments of timber.

27. Rights: YES

Many people live and work in forests and logging almost always has impacts on their lives, most of the world's largest intact or nearnatural  forests are still home for indigenous groups and tribal people. If their land were interferenced and their lives were impeded by outside. They can recognized under international law and the Rio principles draw up at the earth summit unfortunately,these rights are frequently ignored in practice, logging affects other people living in forest areas aswell, through the environmental changes that take place, and simply loss of landscape values and  historical link with the forest.

These "side issues" are often omitted from consideration in planning forestry operations and in the calculation of costs and benefits form logging.

So I think this human rights are very important to us.

28. Relevant Literature


T.C WHITMORE. "An introduction to tropical rain forests"

-2nd. Edition 1998

kummer, David, "the human causes of deforestation in southeast Asia" bioscience, volume 44 number 5, May 1994

 ligang song, "changing global comparative advantage: evidence from Asia and the pacific," 1996

Arnold, J.E.M. "Tree products Global " ,1991

 Information obtained from the net

   -eg. www.china.com

  -eg. www.chineseyahoo.com

  -eg. www.google.com

  -eg. www.altavista.com

  -eg. www.excite.com
 

  FAR EASTERN ECONOMIC REVIEW , 1997- 1998.

  ASIANWEEK , 1998

   BBC WILDLIFE ,1999