Small and medium forest enterprise: China - A discussion paper

Forest enterprise in China has been dominated over the recent past by the State. But the 1990s movement towards a market-based economy saw a rapid growth in non-state enterprise. Small and Medium Forest Enterprises (SMFEs) have an important role to play in support of rural livelihoods. They have proved adept at absorbing labour within the mountainous ‘poverty’ countries in China where forestry is an attractive alternative to agricultural land use. The evolving policy environment for SMFEs has included major new ecological reforms. The imposition of ecologically orientated logging quotas has opened up a vast gap between domestic timber supply and demand. This has squeezed domestic production companies, while opening up many opportunities for SMFEs able to access international trade. This study recommends the need to review the impact of such policies on sustainability and livelihoods.