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Chinese furniture makers, spurred by increased export demands following China's World Trade Organization (WTO) accession, are entering a golden era.
The output value of the country's furniture sector last year was 165 billion yuan (US$19.95 billion), up 17 per cent from the previous year, according to initial statistics from the China National Furniture Association.
Furniture exports in 2002 were worth US$5.3 billion, 30 per cent more than in 2001, according to the association's statistics.
"The furniture industry will maintain its rapid growth rate this year," said Cao Yingchao, secretary-general of the association.
He said in 2003, the furniture sector is expected to expand by more than 15 per cent in industrial output, and 30 per cent in export.
The value of furniture imports to China was just over US$100 million last year, despite predictions imports would soar after China's WTO entry.
In keeping with China's WTO commitment, import tariffs on furniture dropped from 22 per cent to 11 per cent last year. Tariffs will drop to 7.5 per cent this year and be eliminated by 2005.
Meanwhile, other WTO members are set to give Chinese products equal treatment, a move which will bolster China's furniture export industry, Cao said.
"However, one factor may yet hinder this year's export boom - the United States may implement anti-dumping sanctions on Chinese made furniture," Cao said.
US furniture makers proposed in October last year that unfair competition existed between their home grown products and foreign exports.
"If the unreasonable anti-dumping measure is adopted in relation to Chinese products, the domestic furniture industry will suffer great losses," said Cao.
The United States is the largest importer of Chinese furniture. Customs statistics show the United States imported US$2.5 billion worth of Chinese furniture during the first eleven months of last year, 39.46 per cent more than the same time the previous year.
Domestic manufacturers are urged to prepare for possible law changes and to explore new markets in an effort to lower potential trade risks.
"We are definitely not dumping our products onto other countries," said Cao.
According to Cao, another 20 years' of development and Chinese furniture will match foreign producers for variety, quality and technique.
China's advantages lie in large production scale, high quality and relatively low labour costs.
But some aspects of the industry must be improved - including strengthening management, building famous brands and creating innovative designs - factors which will help boost the value of products.
A French media outlet reported earlier this year that China's export on furniture increased 335 per cent from 1994 to 2001, making the country the biggest furniture exporter in the world.
"We might be the first in terms of quantity, but not in terms of export value, due to the low added value of our products," added Cao.
(China Daily February 10, 2003)
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