US Dollar Exchange Rates of
25th
October
2026
China Yuan 6.68
Report from China
Guangxi promotes upgrading of wood processing
sector
Recently, Guangxi officially released the 15th Five-Year
Plan for the Development of Forestry and Grassland in
Guangxi Zhuang Autonomous Region, stating that by 2030
the total output value of the forestry and grassland industry
will reach RMB1.5 trillion and it will promote the
upgrading of the wood industry chain with a focus on
building two major industrial clusters in the Xijiang River
Basin and the Beibu Gulf.
The core objective is that by 2030 the forest cover of the
entire region will reach 60.78%, the forest stock volume
will reach 1.13 billion cubic metres and the total output
value of the forestry and grassland industry will reach
RMB1.5 trillion.
Upgrading direction of the wood industry chain
Wood processing and furniture home furnishing
goods
Centered on Guigang City, a wood processing and
furniture/home goods cluster will be built in the Xijiang
River Basin, promoting the green transformation of wood-
based panel, developing non-formaldehyde eco-friendly
building materials and custom furniture and make up for
the shortcomings in adhesives and hardware, etc. as
supporting industries.
Forest pulp and paper industry
Forest pulp and paper clusters in Beihai city, Qinzhou city
and Nanning city will be established, focus on developing
high-end packaging paperboard, household paper, special
paper, paper-based new materials and lyocell fibers etc. as
high value-added products.
Raw material guarantee
The construction of industrial raw material forests,
precious tree species and large-diameter timber forests
bases, as well as the fastest plus most expensive mixed
planting model of fast-growing tree species and precious
tree species will be promoted. During the 15th Five-Year
Plan period, the annual logging quota of forests will not
exceed 66 million cubic meters.
During the 15th Five-Year Plan period, the industrial goals
of Guangxi are as follows.
The annual output value of wood and bamboo
material processing and furniture and home
furnishing industries will reach RMB500 billion.
The annual output value of forest pulp and paper
industry will reach RMB180 billion.
The annual output value of bamboo industry will
reach RMB15 billion.
See:
https://www.forestry.gov.cn/lyj/1/dfdt/20261022/693029.html
Home furnishing and building material enterprises at a
policy crossroad
China's home and building materials exports to the United
States are currently at a crossroads between an exemption
bill and an increase in actual tariffs. The Housing Tariff
Exemption Bill (H.R. 10416) proposed by the US House
of Representatives in September 2026 is still in the
committee review stage.
The probability of its passage is only about 1%, while the
actual tariff environment is continuously tightening,
starting from July 24, 2026, the United States imposed
new Section 301 tariffs on 60 economic entities including
China. China is subject to a 12.5% rate and after adding
the original tax rat,e the combined tax rate for some home
products can reach up to 42.5%.
At the end of September 2026, the US announced an
additional 10% tariff on imported softwood logs and wood
products, which took effect on 14 October 2026. The gap
between the exemption proposal and the actual imposition
means that the current tariff cost calculation for exports to
the United States should still be based on the currently
effective tax rate.
Local experts analysed the actual impact on Chinese
enterprises as follows:
The cost pressure on export-oriented enterprises has
risen sharply. The home furnishing industry is a
labour intensive sector. Most small and medium-sized
OEM export-oriented enterprises maintain a gross
profit margin of only 3% to 8%. The combined tax
burden of 42.5% has brought about a disruptive cost
shock. Enterprises either have to bear the tariffs and
reduce profits or raise their prices and lose their price
competitiveness.
The transshipment arbitrage model has failed. The
new 301 tariffs have simultaneously included
Vietnam and Thailand on the list for additional 12.5%
tariffs, while Malaysia, Indonesia and Cambodia are
subject to the 10% rate. However, the small
differences are not sufficient to support another large-
scale factory relocation. At the same time, the US
Customs have significantly strengthened the
verification efforts for fake origin and simple
transshipment trade. The tax avoidance model of
domestic semi-finished product export plus simple
assembly in Southeast Asia has basically become
unfeasible.
Some product categories in China are under heavy
pressure from anti-dumping and anti-subsidy
investigations from USA. Wooden cabinets and
bathroom cabinets are subject to a sunset review final
ruling of anti-dumping duties of 262.18% and anti-
subsidy duties ranging from 13.33% to 293.45%.
Hardwood plywood has combined anti-dumping and
anti-subsidy duties exceeding 270%. These product
categories are not included in the exemption list.
Experts have suggested the following strategies for
Chinese enterprises:
Deepening the overseas local supply chain. For
enterprises that have set up factories in Vietnam,
Mexico and other countries need to reduce their
excessive reliance on semi-finished products from
China and accelerate the localisation of procurement of
upstream components such as hardware, sponge, fabric
and packaging to meet the USMCA and regional origin
compliance standards.
Expanding into diversified markets. Over-reliance on
the single North American market has long been
exposed to risks from policy fluctuations. The Middle
East (such as the infrastructure and home furnishing
boom in Saudi Arabia), the local consumer markets in
Southeast Asia, the European and Latin American
markets are now emerging as new choices for Chinese
home furnishing enterprises to expand overseas.
Shifting towards brand and high value-added products.
The path of low-price competition is becoming
increasingly narrow. Enterprises need to enhance the
premium value of their products through industrial
design, intelligent product research and development
(such as smart mattresses, functional sofas), as well as
the establishment of their own overseas brands. This
will help increase the comprehensive risk-resistance
ability to cope with fluctuations in tariffs and supply
chain risks.
See:
https://www.chinatimber.org/index.php/news/detail.html?id=865
61
Guangdong promotes development of the bamboo
industry
Recently, the seven departments of the Guangdong
Provincial Government jointly issued a Five-Year Action
Plan for Accelerating the High-Quality Development of
Provincial Bamboo Industry (2026-2030), stating that by
2030 the total area of bamboo forests in Guangdong
Province will remain stable at over 533,000 hectares and
the total output value of the bamboo industry will reach
RMB50 billion.
The plan includes 15 key tasks in four aspects, expanding
bamboo resource cultivation, strengthening bamboo
processing, optimising bamboo services and exploring
new bamboo business models to accelerate the
construction of a modernised bamboo industry system in
Guangdong that integrates advanced technology,
competitiveness and is green and low-carbon.
Guangdong has abundant bamboo resources and a solid
foundation for developing the bamboo industry. The
province currently has 528,000 hectares of bamboo
forests, ranking sixth in China. Of the total, there are
190,666 hectares of Moso bamboo, 65,333 hectares of
Bamboo grass, 60,000 hectares of Green skin bamboo,
50,666 hectares of Tea pole bamboo, 46,000 hectares of
Powdered single bamboo and 115,333 hectares of other
types of bamboo.
There are 1,333 bamboo-related enterprises in Guangdong
Province. In 2026 the value of the bamboo industry in the
Province will exceed RMB25 billion, ranking seventh in
China.
Of the total, there are four cities with annual output value
exceeding RMB10 billion, namely RMB8.76 billion in
Zhaoqing City, RMB6.7 billion in Qingyuan City,
RMB5.2 billion in Shaoguan City and RMB1.5 billion in
Maoming City. The bamboo industry has become an
important industry for promoting rural revitalisation and
stabilising agricultural incomes in Guangdong Province.
The ecological, economic and social benefits of the
bamboo forests will be enhanced in a coordinated manner.
The bamboo industry will be developed into an important
industry in Guangdong Province promoting the
transformation of small bamboo into a big industry and
fully leveraging the benefits of ecological construction in a
green Guangdong Province.
See: https://lyj.gd.gov.cn/lmgd/dtzx/content/post_4963829.html
Canada issues anti-dumping and anti-subsidy rulings
In August 2026 the Canadian International Trade Tribunal
initiated an inquiry (NQ-2026-004) to determine whether
the dumping and subsidising of decorative and other non-
structural plywood originating in or exported from China
has caused injury or retardation or are threatening to cause
injury to the domestic industry. This final injury inquiry
was initiated in response to a notice received from the
Canada Border Services Agency stating that preliminary
determinations had been made respecting the dumping and
subsidiszing of the goods.
The customs codes of the involved products have been
reported as
4412.10.00.00, 4412.31.00.00, 4412.33.00.10,
4412.33.00.20, 4412.33.00.30, 4412.33.00.90,
4412.34.00.00, 4412.39.00.10, 4412.39.00.21,
4412.39.00.22, 4412.39.00.23, 4412.39.00.90,
4412.91.00.00, 4412.92.00.00 and 4412.99.00.00.
The tax rates for 11 responding enterprises range from
0.0% to 173.6%. Among them, only one enterprise with
both the dumping margin and subsidy amount being
negligible but Shandong Hengjia has a minimum positive
tax rate of 6.1% and Linyi Jiahe has a rate of 8.4%. The
tax rate for all other enterprises exporting this type of
plywood to Canada is 227.5%.
The Canada Border Services Agency stated that although
some enterprises are exempt from paying the
corresponding temporary tariffs, anti-dumping and anti-
subsidy investigations for all related products of these
enterprises will still continue.
On 22 December 2026, the Tribunal will determine
whether the dumping and subsidising have caused injury
or retardation or are threatening to cause injury to the
domestic industry.
See: https://www.canada.ca/en/international-trade-
tribunal/news/2026/08/tribunal-initiates-final-injury-
inquirydecorative-and-other-non-structural-plywood-from-
china.html
and
http://www.cnfpia.org/sf_EE0571C733DE49EEBE948E09ECE1
87FD_297_9E5BA0FB363.html
and
https://cacs.mofcom.gov.cn/article/ajycs/ckys/202604/187764.ht
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