US Dollar Exchange Rates of 10th
September 2013
China Yuan 6.1216
Report from China
Economic outlook improving
China‟s Bureau of Statistics has reported that consumer
prices were up 2.6% in August compared to levels in
August last year and slightly down on the 2.7% increase
reported for July this year.
Other data shows that the previous months‟ decline in
producer prices seems to have been arrested as the
indications are that they fell just over 1.5% in August.
The slightly milder inflation coupled with the better than
expected trade surplus has given a boost to policy makers
to maintain the current fiscal management and has analysts
confirming the positive outlook for the Chinese economy.
Exports to ASEAN countries jump 30 percent
The latest data from China‟s Customs show that exports
rose over 7 percent in August compared to August 2012.
Imports also rose but the country still managed a trade
surplus of almost US$29 billion for August 2013.
Over the past months there was growing concern that the
Chinese economy had stalled but the August export data
have allayed some of these fears. August exports were up
from the 5.1% year on year rise in July and much better
than the 3.1% year on year fall in June this year.
In the first half of this year growth in the Chinese
economy slowed, impacted by weakness in the global
economy and subdued domestic demand. Annualised GDP
fell to 7.5% in the second quarter after a 7.7% increase in
the first quarter.
A closer look at the trade figures reveals that exports to the
European Union rose 2.5 percent, about the same as in
July. Exports to Japan fell in August marking seven
straight months of decline. Exports to ASEAN countries
grew an impressive 31% in August and exports to the US
rose 6%.
Green home furnishing standard launched
Consumers in China will soon just need to look for the
„3G‟ logo on wood products they intend to buy to know if
formaldehyde emission standards have been satisfied by
manufacturers.
The China Interior Decoration Association wood-based
panel circulation alliance recently concluded arrangements
for an industry initiative called „3G‟ for home furnishing
materials. At present five major enterprises have been
authorised to use the „3G‟ logo and the new scheme will
be started in December this year.
The „3G‟ logo for home furnishing materials has three
ratings for levels of formaldehyde and volatile organic
compounds, G1, G2 and G3.
G1 signifies no formaldehyde emission, the highest level
of environmental protection. This private sector initiative
for „green‟ furnishings has been approved by the Ministry
of Commerce. , and will be officially implemented from
December 1st 2013.
Putian City plans to extend timber trade zone
The Putian municipal authorities in Fujian have developed
plans to support the Development of the Xiuyu timber
trade and processing zone to strengthen and expand the
wood processing and distribution capacity in the city.
The plan calls for preferential tax structures for enterprises
in the zone to run for three years and the provision of
subsidies companies importing through Putian Port. This
support from the city authorities will be mainly for
companies utilizing new supply routes.
In addition the city will work with enterprises to ensure
access to and from the zone is unhindered by unnecessary
and costly administration. The city authorities are clearly
hoping foreign investors will be attracted to the timber
zone and have said staff and workers from enterprises in
the zone will be able to enjoy the same privileges as local
citizens.
Putian is a prefecture- level city of Fujian Province located
in the southeast of Fujian just west of Taiwan P.o.C (see
map below). Putian has three ports on its coast, the largest
being in Meizhou Bay in terms of the amount of freight
that is handled.
See: http://china-trade-research.hktdc.com/businessnews/
article/Fast-Facts/Putian-Fujian-City-
Information/ff/en/1/1X000000/1X073NEP.htm#sthash.03
qeaSgP.dpuf
New redwood furniture standard not widely
implemented
According to a recent survey of the market for redwood in
Guangxi, Guangdong, Fujian, Zhejiang, the new national
standard on redwood Chinese furniture is not widely
known even though technical standards were introduced
two years ago.
It was found that many manufacturers and dealers do not
comply with the standard which is said to be hampering
the investment and creating problems in the market.
According to local experts the current standard is quite
different from the previous one issued in 2000. The
technical specifications have been changed and new
technical requirements included specifically on species
nomenclature, dimensions and quality.
Companies manufacturing and trading to the new standard
face higher production and sales costs. The survey found
that in Guangxi Pingxiang and Dongxing cities,
Guangdong Shantou and Shenzhen cities and Zhejiang
Dongyang City more than half the redwood furniture
dealers were not complying with the current standard and
had an unfair trading advantage over those that were
complying.
One of the major problems in the redwood Chinese
furniture market is that of profiteer through substitution by
non-redwood timbers.
The new standard requires traders to clearly indicate the
timber used based on customs declaration certificates to
prove the source of the wood and the certificate issued by
local quality inspection institutions.
Scheme on ¡®old-for-new¡¯ furniture did not stimulate
consumption
According to an assessment of the Beijing municipal
government policy to stimulate furniture consumption
through its old-for-new furniture scheme has not had as
much impact as expected.
The Beijing municipal government introduced an old-fornew
furniture policy in 2012. Mr. Hong Tao, head of the
Business Economics Institute, Beijing Technology and
Business University has said the period for
implementation of old-for-new furniture pilot was too
short and that many people are not aware of this initiative.
Redwood imports increasing rapidly through
Pingxiang City, Guangxi
Pingxiang is located at the southern tip of Guangxi
province and has convenient road access to ASEAN
countries such that the city handles a large volume of
redwood imports.
Traders choose the city to import redwood due to its
favourable location and unique geographical advantages.
Redwood imports increased through Pingxiang Port from
the beginning of 2013 because of expanded trade between
China and ASEAN countries. Redwood imports have been
increasing at double digit since then except for a slight
drop in February because of the lull in trade due to the
Chinese Spring Festival.
In July 2013 redwood imports through Pingxiang Port
totalled 3,070 tonnes valued at US$10.58 million.
Domestic demand for redwood has been increasing in
China because redwood products are popular and are
deemed collectable items that will appreciate in price.
Plantations in Kunming failing to satisfy demand
The demand for logs is very high in Kunming market and
the local plantations can only satisfy around 10 percent of
the demand from local companies so much has to be
purchased from other provinces.
Eucalyptus and poplar are the main plantation timbers in
Kunming and these trees are also used to create „green
corridors‟ in urban areas and for rural „greening‟ projects.
 
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