US Dollar Exchange Rates of 25th July 2018
China Yuan 6.7697
Report from China
Real estate developments in the first half of 2018
China¡¯s National Bureau of Statistics has released its
assessment of national real estate development and sales in
the first six months of 2018. This shows that total
investment in real estate in the first six months of 2018
expanded slightly but was down on the pace of growth in
the first 5 months of the year.
In the first six months the area of land purchased by real
estate developers was up by 7.2% year-on-year sharply up
on the pace of growth in the first half of the year.
See:
http://www.stats.gov.cn/english/PressRelease/201807/t20180719
_1610970.html
Over the past few years the government has introduced
policies which reduced the dependence of economic
growth on the real estate sector but still the construction
sector remains a cornerstone of GDP growth. Lower
investment in the construction sector will have a knock-on
effect on imports of commodities including wood
products.
IMF ¨C China¡¯s growth prospects
In its latest annual assessment of the Chinese economy the
IMF says growth is projected at 6.6% 2018. The report
from the IMF goes on the say ¡°Four decades of reform
have transformed China from one of the poorest countries
in the world to the second largest economy. The country
now accounts for one-third of global growth. Over 800
million people have been lifted out of poverty and the
country has achieved upper middle-income status. China¡¯s
per capita GDP continues to converge to that of the United
States, albeit at a more moderate pace in the last few
years.¡±
See:
https://www.imf.org/en/News/Articles/2018/07/25/na072618-
chinas-economic-outlook-in-six-charts
Background on China¡¯s wood products trade
Data from China Customs shows that in 2017 total value
of China¡¯s wood products trade (imports and exports) rose
10% to US$156.4 billion. The growth in wood products
imports rose 21% to US$ 52.6 billion, significantly higher
than the growth in exports (1.3%).
The US is the main importer of China¡¯s wood products but
anti-dumping and anti-subsidy policies in the have resulted
in a sharp fall in exports to the US.
China¡¯s wood products enterprises are facing considerable
challenges in the US market.
The value of foreign trade in wood products between
China and the US in 2017 was US$29 billion, accounting
for 19% of China¡¯s total wood products trade.
However, tensions between the United States and China
are increasing over trade issues after tariffs on US$50
billion worth of Chinese goods were announced by the
US.
The US recently released a list of tariffs on US$200 billion
of Chinese goods and wood products are affected
including wood chips, wood charcoal, logs, other wooden
products, sleepers, sawnwood, veneer, wooden flooring,
particleboard, fibreboard, plywood, laminated wood,
wooden doors, wooden windows, bamboo and rattan,
wood pulp and waste paper, paper and board, pulp and
paper products and wooden furniture and seats.
In 2017 the value of China¡¯s exports of wood products
now included in the list attracting tariff was US$16.365
billion. The value of China¡¯s imports wood products
included in the list attracting US tariffs was $8.27 billion.
China imports mainly waste paper, sawnwood, wood pulp,
logs and paper products.
The changes to US tariffs, if implemented in full, will
create a major challenge for Chinese enterprises. The
tariffs will not immediately go into effect but will be
subject to a two-month review process beginning in
August.
  
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