US Dollar Exchange Rates of
China Yuan 7.0018
Report from China
Drop in first half GDP
The State Council Information Office has reported that
GDP in the first half of 2020 declined 1.6% year on year. ,
GDP fell 6.8% in the first quarter and expanded 3.2% in
the second quarter.
In the first half of 2020 investment in fixed assets
(excluding that by farmers) fell 3.1% to RMB28.1603
trillion, down 3.2% between January and May and down
13% compared to the first half of 2019.
In the first 5 months investment in infrastructure fell 2.7%,
investment in manufacturing fell 11.7% which on a year
on year basis translates to a 17% and 13.5% decline
respectively. In contrast, investment in real estate
development grew almost 2% but was still down around
8% year on year.
Decline in foreign trade
China's foreign trade declined 3.2% year-on-year to
RMB14.24 trillion in the first half of 2020 according to
data released by the General Administration of Customs.
Exports dropped by 3% on a yearly basis to RMB7.71
trillion and imports fell by 3.3% year-on-year to RMB6.53
The administration said that foreign trade in the first half
of 2020 was better than expected with both imports and
exports registering positive growth in June. China's
foreign trade surged 5.1% on a yearly basis in June, with
exports and imports growing 4.3% and 6.2% respectively.
Germany the second-largest log supplier
China Customs data shows that in the first half of this year
China¡¯s log imports totalled 19.68 million cubic metres
valued at US$2.83 billion, a year on year decline of 68%
in volume and 70% in value.
The volume of China¡¯s log imports from Germany
exceeded those from Russia in the first half of 2020.
Countries suppling more than 1 million cubic metres were
New Zealand (5.25 million cu.m -70%), Germany (2.71
million cu.m -36%), Russia (2.68 million cu.m -65%),
Australia (1.65 million cu.m -68%), Papua New Guinea
(1.17 million cu.m -64%) and Czech Republic (1.10
million cu.m -52%).
The average price for imported logs from Germany was
US$106 per cubic metre lower than from Russia (US$122
per cubic metre) giving shippers in Germany an
Russia ¨C the largest supplier of sawnwood
China¡¯s first half 2020 sawnwood imports totalled 13.83
million cubic metres valued at US$2.90 billion, a year on
year decline of 64% in volume and 66% in value in the
first half of 2020. Most suppliers saw a sharp fall in
sawnwood exports to China in the first half of 2020.
Thailand was ranked the main sawnwood supplier for
several years but in the first half of 2020 Russia became
the largest supplier of sawnwood to China.
The volume of China¡¯s sawnwood imports from Russia
exceeded that fromThailand in the first half of 2020. The
suppliers with more than 1 million cubic metres were
Russia (6.43 million cu.m -65%), Thailand (1.34 million
cu.m -63%) and Canada (2.68 million cu.m -72.
The average price for imported sawnwood from Russia
was US$177 per cubic metre which was lower than from
Thailand (US$272 per cubic metre.
Intensified log inspection at Manzhouli Port
Russian logs are allowed to be imported into China if
fumigation certificates are provided. Recently, China
Customs has intensified inspection of logs imported from
Russia through Manzhouli P because some logs were
found to have pests and had to be retreated, an additional
cost for the importer. Only after fumigation were these
logs transported to the processing mills. This increases the
cost of enterprises.
Northwest International Timber Trading Center
It has been reported that a Northwest International Timber
Trading Center has been established in the Zhongchuan
North Station Logistics Zone in the Lanzhou New Area.
This is a national level logistics hub.
The completion of the trading centre has created a
newservice platform and industrial supply chain for
imported wood products integrating warehousing,
distribution, sales and processing, which has injected new
strength into the promotion of the "hub economy" and
spurred the development of further investment in wood
processing in the Lanzhou New Area.
Zhuangzhai the national wood-based panel production
Zhuangzhai Town, Cao County, Heze City in Shandong
Province is one of the important wood-based panel
production bases in the country and the largest candlenut
(Aleurites moluccanus or moluccana) processing, trading
and distribution centre for candlenut wood products.
Wood processing is the leading industry in Zhuangzhai
Town. There are more than 600 enterprises and 37
industrial enterprises with annual main business income of
RMB20 million. It is estimated that around 60,000 direct
and indirect jobs have been created employees. The annual
wood processing capacity is said to be 3 million cubic
Almost all the enterprises in Zhuangzhai Town started as
sawmills and gradually moved to added value processing.
Today they are leading the industry in the manufacturing
of candlenut coffins, children's furniture and toys and
shutters. Products are marketed in Europe, America and
Australia along with around 40 other countries.