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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 significant challenges due to rising international competition, slowing domestic economic growth, and a series of new policies aimed at restricting the import of wooden furniture. As a result, the overall prosperity of the wooden furniture sector has declined, and some small and medium-sized enterprises have struggled, impacting the healthy development of the entire industry.
Currently, furniture manufacturers in Beijing are dealing with increasing operational costs, rising prices for wood raw materials in the global market, and higher wages for frontline workers, all contributing to significant cost pressures. Additionally, the appreciation of the Chinese yuan has further reduced profit margins. Combined with strict foreign trade standards, high tariffs, and intense competition from domestic peers, many furniture exporters have seen their export values decline. To help companies navigate these technical trade barriers, the Beijing Inspection and Quarantine Bureau has been conducting investigations and risk analyses on various technical measures affecting local furniture exporters.
One major challenge comes from Russia, which has imposed restrictive tariffs on log exports. In 2007 and 2008, the tariff increased significantly, and although it was temporarily suspended during the global financial crisis, the possibility of stricter restrictions remains. Since 70% of China’s imported logs come from Russia, any new policy could drastically increase production costs for domestic furniture makers.
Another key issue is the U.S. Formaldehyde Standards Act for Composite Wood Products, which was enacted in 2011. This law sets extremely stringent formaldehyde emission limits, far exceeding China’s current standards. Compliance requires companies to source specific raw materials for U.S. exports, leading to increased stock pressure, testing costs, and supply chain complexity. Even minor issues with adhesives or packaging can lead to failed inspections, adding to the operational burden for manufacturers.
The EU’s “Country of Origin†Act, effective since 2013, also poses challenges. It mandates that wood products exported to the EU must be certified as legally sourced. While large firms with FSC certification can manage this, smaller companies often struggle due to the difficulty of obtaining such certifications, especially when sourcing from countries with questionable logging practices. This could weaken their competitive edge and force them to shift markets.
Meanwhile, the U.S. Lacey Act amendments, effective since 2010, require detailed documentation of the origin of all wooden products entering the U.S. Violations can lead to severe penalties, including confiscation, fines, or even imprisonment. For Chinese exporters, this means higher compliance costs and greater legal risks, particularly for smaller businesses that may lack the resources to meet these requirements.
In response, the Beijing Inspection and Quarantine Bureau should continue monitoring the implementation of these regulations and provide timely risk alerts to companies. Strengthening oversight of raw materials and production processes, as well as improving testing capabilities, will help reduce future operational risks. At the same time, enterprises must adapt by upgrading technology and enhancing their compliance strategies to remain competitive in the global market. (Editor: Peter)