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In recent years, the scale of wooden furniture exports from Beijing has continued to grow, with annual export volumes stabilizing around 400 million yuan. These products are exported to over 60 countries and regions, including the United States and the European Union. However, the industry is now facing challenges due to intensified global competition, slower domestic economic growth, and new policies aimed at restricting the import of wooden furniture. As a result, the overall performance of the wooden furniture sector has weakened. Small and medium-sized enterprises (SMEs) have experienced failures, which have had a negative impact on the healthy development of the entire industry.
Currently, furniture manufacturers in Beijing are dealing with rising operational costs, increasing wood prices in the international market, and higher wages for frontline workers. This has led to significant cost pressures. Additionally, the appreciation of the Chinese yuan has further squeezed profit margins. Combined with strict foreign trade regulations, high tariffs, and fierce domestic competition, many furniture exporters have seen their export values decline. To help companies better navigate these technical trade barriers, the Beijing Inspection and Quarantine Bureau has conducted investigations and risk analyses of several furniture export enterprises within its jurisdiction.
One major challenge comes from Russia's restrictive log export tariffs. In 2007 and 2008, Russia increased its log export duties significantly, from 4 euros per cubic meter to 15 euros. Although the government suspended plans to raise it further to 50 euros, the possibility of stricter restrictions remains. Since 70% of China’s imported logs come from Russia, any policy tightening would lead to a sharp rise in production costs for local furniture manufacturers.
Another key issue is the U.S. Formaldehyde Standards Act for Composite Wood Products, which came into effect in 2011. This law sets extremely strict formaldehyde emission limits, much lower than China’s current standards. For example, while China allows up to 80ppm, the U.S. limit is just 0.11ppm. This has forced Chinese furniture companies to source special materials for the U.S. market, leading to increased inventory pressure and testing costs. Moreover, the law also affects finished furniture, as non-compliant adhesives or packaging can lead to failed inspections. Companies must now ensure not only their own product quality but also that all upstream suppliers meet stringent requirements.
Although the act is in place, many Chinese companies still use materials based on older standards. If the U.S. enforces this strictly, Chinese exporters could face massive claims and operational difficulties.
Additionally, the EU’s "Country of Origin" regulation and the amended Lacey Act in the U.S. are creating more hurdles for furniture exporters. The EU requires proof that wood products are legally sourced, often through FSC certification. While large firms can manage this, smaller companies struggle due to high costs and complex procedures. Similarly, the Lacey Act mandates legal origin certificates for all wood products entering the U.S., with severe penalties for violations. This has made it harder for Chinese SMEs to compete in these markets.
To address these challenges, the inspection and quarantine authorities should closely monitor new regulations and provide timely risk alerts. Strengthening oversight of raw materials, production processes, and product quality will help reduce future risks. At the same time, companies must adapt by improving technology and testing capabilities to remain competitive in the global market.