{"id":13188,"date":"2023-11-27T13:09:07","date_gmt":"2023-11-27T02:09:07","guid":{"rendered":"https:\/\/woodcentral.com.au\/?p=13188"},"modified":"2024-10-21T20:27:22","modified_gmt":"2024-10-21T10:27:22","slug":"china-tightens-global-timber-control-with-5-6b-asean-deals","status":"publish","type":"post","link":"https:\/\/woodcentral.com.au\/china-tightens-global-timber-control-with-5-6b-asean-deals\/","title":{"rendered":"China Tightens Global Timber Control with $5.6B ASEAN Deals"},"content":{"rendered":"\n

As the world descends on Dubai for the COP28 World Climate Action Summit, China’s grip on global timber supply chains is strengthening after more than US $5.6 billion of forest projects were awarded to ASEAN member countries during the World Forestry Industry Conference in Nanning, Guangxi Zhuang on Saturday.<\/p>\n\n\n\n

As reported by Chinese State Media<\/a>, the World Forestry Industry Conference is part of the China-ASEAN Expo (or CAEXPO) – one of the world’s largest expositions, promoting cooperation between China and ASEAN members in trade, investment and tourism.<\/p>\n\n\n\n

The theme was “Green Forest Industry, Bright Cooperation Future,” with more than 5,000 participants from across the region attending the conference. The projects include bamboo and wood flooring, “intelligent furniture manufacturing”, biomass energy, forest carbon sequestration, and forestry finance.<\/p>\n\n\n\n

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Chinese State Media covering the first World Forestry Industry Conference at Nanning International Convention and Exhibition Center in Nanning, capital of south China’s Guangxi Zhuang Autonomous Region, Nov. 25, 2023. (Photo Credit: Xinhua)<\/figcaption><\/figure>\n\n\n\n

ASEAN, which in 2002 signed the China \u2013 ASEAN Free Trade Agreement (ACFTA<\/a>), is a partner in China’s Belt and Road initiative, with most countries “perceiving the initiative to be an opportunity to build up their infrastructure and boost their domestic economy, especially ahead of an anticipated slump in global growth.”<\/a><\/p>\n\n\n\n

Last month, Wood Central reported that Kao Kim Hourn, secretary-general of ASEAN, said the Belt and Road Initiative has promoted global and regional connectivity, and ASEAN will have more opportunities in infrastructure development.<\/a><\/p>\n\n\n\n

Wood Central understands that the projects were awarded to ASEAN countries that share a border with China’s southern mainland, with US-based 360 Info reporting that its geography shapes the type of projects funded.<\/p>\n\n\n\n

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More than 30% of the world\u2019s forests are connected to the Belt and Road Initiative trade routes \u2013 here US research firm Brookings has demonstrated the BRI\u2019s role in driving global deforestation (dated 2019).
<\/figcaption><\/figure>\n\n\n\n

China’s southern mainland forms a land border with many ASEAN countries, <\/a>which US-based 360 Info reports shape the type of projects funded.<\/a><\/p>\n\n\n\n

“China has been the only country<\/a> to invest in Myanmar consistently since 1988 and has taken a special interest<\/a> in the country,” 360 Info said.<\/p>\n\n\n\n

As reported earlier this month,<\/a> the Myanmar conflict is now cutting off Teak supply to China – exported from China to European and North American markets –  with China being the junta’s most prominent financial backer since the coup in 2021.<\/a><\/p>\n\n\n\n

Notably, this includes timber and, more specifically, teak \u2013 with Maynmar supplying 40% of the world\u2019s supply (Tectona grandis<\/em><\/a>).<\/p>\n\n\n\n

“Along with two highways, China and Myanmar are working on a deep sea port in Kyaukpyu and launched a joint radar and satellite communication laboratory in 2018,” according to 360 Info.<\/p>\n\n\n\n

Singapore, a global trading post for timber supply chains, is not just a partner in the Belt and Road “but also a founding member of the Beijing-based Asian Infrastructure Investment Bank (AIIB), a World Bank alternative.”<\/p>\n\n\n\n

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