Gathering of the Industry; Feast of the Trade
--Report on the 2007 China Wood Flooring Exp. & Imp. Conference

On Oct 28-30, the 3rd China Wood Flooring Exp. & Imp. Conference & the 6th China Wood Markets Exp. & Imp. Conference, which organized by China Forestry Industry Association and China Wood international, Inc & www.chinawood.org/net, was ceremoniously opened in World Trade Center Grand Hotel Zhejiang in the city of Hangzhou, one of the most beautiful cities in China.

From 2002 to present, China Wood International Inc has held international trade conferences for six consecutive years. Of them, the annual China Wood Flooring Export & Import Conference has grown to be a summit that draws more and more attention from the industry, and also an efficient platform of cooperation and communications between China and the world.

The conference this year attracted over 200 insiders within the industry from both home and abroad, including government officers such as Ms. Liao Yinming, from Institute of Market Economy of DRC (Development Research Center of the State Council) and Mr. Yao Changtian, director of Development Planning & Fund Management Department of State Forestry Administration; association representatives like Mr. Rafael Michavila Garcia, president of EFPI, Mr. Ruud Steenvoorden, Vice President of EFPI, Mr. Joe Audino, immediate past chairman of NWFA, Mr. Zhang Senlin, president of China National Forest Product Industry Association (CNFPIA), Mr. John Chan, Regional Director of AHEC Southeast Asia & Greater China, and Mr. Liu Bing, forest campaigner of Greenpeace China; enterprise elites such as Mr. Hongfan Li, the host of the conference and president of China Wood International, Mr. Lin Hai, president of Hangzhou Dazhuang Floor Co., Ltd., Mr. Stuart Hirschhom, president of CATALINA Research, Inc, Mr. Yang Dianyan, senior purchasing director of B&Q, and Mr. Guan Jianhua, president of Homag China Golden Field Woodworking Machinery Ltd.

Discussing Macro Policies
Forestry Industrial Policy Key Points was an official document newly released by seven state departments to guide the orientation of the development of China's forestry industry and also the theme of Yao Changtian in his speech Development of Modern Forestry Industry and Industrial Policies at the conference. Yao summarized four breakthroughs in the Key Points at the level of supporting policies, of the content, goal, orientation of forestry industrial development, of the mode of forestry industrial development, and of establishing new forestry industry regulation mechanism; and five respects embodied in it, namely 1) pushing forward the construction of modern forestry in an all-round way; 2) the priority of ecology and the coordinated development of ecology and industry; 3) making forestry flourish and people rich and advancing the collective forestry property rights reform;4) fully exerting the fundamental role of market mechanism; 5) rejuvenating forestry through science and technology.

The latest adjustment of export rebates for wood products was another hot topic focused at the conference."NFPIA supports the State" adjustment of export rebates" said Zhang Senlin, the president of CNFPIA, in his speech titled Trend of Export Rebates for Wood Flooring in China Under the Macro Economic Circumstances. But he also expressed his hope that the actual situations and the bearing capability of enterprises should be considered by policy makers; the frequency and degree should be lowered; and there should be a transition periods for the execution of adjustments. In terms of the trend of export rebate adjustments, Zhang remarked: 1) The export of solid wood flooring as a highly resource-intensive product may be further prohibited by the state by raising taxes; 2) there is a voice of levying consumption tax and export tax for engineered flooring; 3) opposed opinions are contending about eliminating the export rebates for laminate flooring; 4) bamboo flooring is more and more popular in China and other countries; the export rebate policy for bamboo flooring is predicted to not be adjusted greatly in the near future thanks to the abundant resources in China.

Liao Yingmin, from Institute of Market Economy of DRC, holds in her speech China's Economic Development & Growth of Consumption Needsthat the adjustments of export rebates aim to: 1) control the overquick growth of export; 2) relieve the prominent contraction brought by the great trade surplus; 3) optimize the export commodity mix and restrain the export of "highly energy-consuming, heavy-pollution and resource-intensive" products; 4) help promote the change of foreign trade growth mode and the balance of import and export, and smooth trade frictions; 5) accelerate the change of economic growth mode and the sustainable development of society and economy; but for flooring enterprises, the adjustments will increase the costs of production and at the same time reduce the profits; they also have to face the new round of increase of raw material cost, labor cost, rental and changes of exchange rates, so they have a lot of difficulties to overcome. In the meantime, the flooring industry will make a leap forward if enterprises are further regrouped, new generations of products with high technological content and quality are consistently come out with, and enterprises management is improved.

Focusing on Flooring Trade
International trade in flooring industry plays a core role in attendees'discussions.

Hongfan Li, President of CWI, introduced that the export volume of laminate flooring of China accounts for 30% around of the total output and import volume for about 5% of the total domestic consumption; the export volume of solid wood flooring makes up 40% of the total output while the import volume is very small; the export volume of engineered flooring is about a half of the total output and the imported engineered flooring accounts for about 1.43% of the whole consumption. In the processes of flooring import and export, there are problems such as product quality, export rebates, anti-dumping investigation, etc that Chinese flooring enterprises have all to face.

The European Federation of Parquet Importers (EFPI) is a Brussels-based association of leading European importers of engineered and solid wood floorings. EFPI was founded in June 2005 and aims to facilitate the discussion of ideas among importers about the promotion of wood flooring in Europe, to share information about EU legislation, standardization and issues concerning international trade for the parquet industry. Mr. Rafael Michavila Garcia, the president of the association, predicted "0-15% (of growth for China's engineered flooring imported to Europe) per year for the coming 5 years is a realistic estimation" At the same time, he suggested Chinese manufacturers and exporters understand the market structure in Europe and use the right partners and build on these partners, while EFPI importers can provide the best service and have the best contacts in the sales markets.

Stuart Hirschhorn, Director of Research of Catalina Research, Inc., expounded the dynamics, competitive environment, and strategies in world floor coverings market.

National Wood Flooring Association (NWFA) has 4,100-plus member companies in all 50 of the United States, as well as 54 countries around the world. Joe Audino, the immediate past chairman of NWFA, analyzed the economic growth of the US and the status quo of wood flooring market. He laid the emphasis of the future needs in American markets on innovative products and environmentally friendly products.

	Speaker: Stuart Hirschhorn , CATALINA Research,Inc
		Wold Floor Coverings Market:Global Market Dynamics,Competitive Environment,and Strategies to Build International Brands.
	Speaker: Yao Changtian , State Forestry Administration PRC.
		Development of Modern Forestry Industry and Industrial Policies.
	Speaker: Liao Yingmin , Institute of Market Economy,Development Research Center of the State Council
		China's Economic Development & Growth of Consumption Needs.
	Speaker: Zhang Senlin , China National Forest Product Industry Association
		Trend of Export Rebates for Wood Flooring in China Under the Macro Economic Circumstances.
	Speaker: Guan Jianhua , HOMAG CHINA
		Investment and International Trade on China Wood Flooring.
	Speaker: Joe Audino , NWFA
		North Smerica Flooring Market.
	Speaker: Ruud Steenvoorden , EFPI
		The European Wood Flooring Import Market.
	Speaker: Hongfan Li , China Wood International,Inc
		Status quo of Import and Export of China?? Wood Flooring.
	Speaker: Daniel Yang , B&Q.China
		Solution for Green Flooring Purchasing.
	Speaker: John Chan , AHEC
		Introduction to the Application of American Hardwood.
	Speaker: Liu Bin , Greenpeace
		Species from South-east Asia & the European Unions Timber Trade Policy.
	Speaker: Denis Smirnov , WWF Russia
		Challenges and Opportunities for Green Market .

Avid Communications among Enterprises
Raw material is another hot issue at the conference. Liu Bing, from Greenpeace China, gave his suggestions on sourcing Southeast Asian wood species, and also he analyzed the trends of timber policies of EU. He pinpointed that the export of China's wood products is facing "green barriers"; under such circumstances, only "green timber" (legal timber) can has the privileged "green channels" In the meantime, Yang Dianyan from B&Q introduced the company's procurement policy and Bai Huixue from Zhonglin Xinda Certification Center shared the information about the status quo and development of China's forest management certification.

Meanwhile, enterprises raised many questions about trade, forestry polices, timber sourcing, etc to the speakers. Tea breaks become a good time for representatives to communicate and discuss issues they concern.

Face-to-face Business Talks
A special time was reserved on the afternoon of 28th.

This conference offered very convenient facilities for Chinese and foreign guests. "Communication cards"bridged enterprises having the intention of knowing each other, while the layout of exhibition booths integrated both maneuver and concentration.

This particular session was proved to be very welcome to both foreign buyers and Chinese manufacturers because they got abundant chances to sit down and hold talks with ideal business partners face to face.

Business Tours
During 30th-31st, foreign businessmen made business tours recommended and arranged by the conference.

Hangzhou Dazhuang Floor Co., Ltd., Singular Group, and Treesun and Dehua, two representatives of Nanxun wood flooring industrial cluster are the destinations of foreign businessmen. These companies are all typical in China's wood flooring industry. Dazhuang is a leading producer of bamboo flooring with export volume ranking No. 1 in the country; Singular Group has made striking achievements in the innovation and export of engineered flooring; Treesun and Dehua are two branded solid wood flooring manufacturers with the development of Nanxun solid wood flooring industrial cluster.

Foreign guests received warm welcome in the above enterprises. Presidents introduced the status quo of the enterprise in a detailed way, led them to visit workshops and showed them the advanced equipment and processes the enterprises are using.

Through these ways, the rapid development of China's wood flooring industry is displayed to international buyers; the image and brand of China's wood flooring enterprises are projected to their mind.

Sidelights of the Conference
During the session, the deepest perception is the eagerness of enterprises to communicate. A foreign businessman even pasted the names of their products and needs on the back of his clothes, making him the most attractive man on that occasion.

The evening banquet, without the tension in the daytime, then offered a platform for enterprises to communicate and establish friendship.