British Columbia’s Ministry of Forests has signed a memorandum of understanding with China regarding modern wood construction, a move aimed at boosting the local lumber industry amidst efforts to diversify away from the U.S. market. The five-year agreement, although non-binding, involves collaboration with the Chinese government and Canada’s federal Department of Natural Resources, marking one of the initial accords following Prime Minister Mark Carney’s recent visit to China.
The agreement involves China’s Ministry of Housing and Development and focuses on integrating modern wood construction into China’s urban renewal and rural revitalization strategies. It also explores practical approaches for sustainable green developments. According to Juliet Lu, a political ecologist and China expert at the University of British Columbia, this memorandum represents a positive step in enhancing trade relations with Beijing, especially in comparison to navigating issues such as Canadian tariffs on Chinese electric vehicles or China’s levies on Canadian canola.
The MOU aims to promote the development of an “industrial chain” for wood construction, encouraging exchanges and joint research on modern wood construction techniques for tall wood buildings and mass timber projects. Lu emphasized that China’s construction industry is transitioning towards more diverse building structures, facilitated by advancements in engineered wood technologies that enable the construction of larger wooden buildings, a trend already visible in Chinese cities like Beijing, Shanghai, and Haikou.
While previous agreements on wood-frame construction were signed between B.C. and China in 2010 and 2015, Lu highlighted that recent changes in Chinese building regulations now allow for larger wood buildings in key urban centers. The shift towards value-added products like engineered wood and mass timber is seen as a potential economic boon for the province.
Forest Minister Ravi Parmar stated that the MOU is part of a series of strategic actions taken in response to U.S. tariffs impacting the forestry sector. Parmar emphasized the importance of exploring new markets and forging stronger partnerships to stabilize and diversify the sector, citing trade missions to Japan and South Korea as well as Premier David Eby’s current visit to India as examples of such efforts.
The B.C. forestry industry has faced challenges due to U.S. tariffs, global economic uncertainties, and limited access to affordable timber resources, resulting in closures like the recent shutdown of a Vancouver Island pulp mill operated by Domtar. Prime Minister Carney’s visit to China has also seen the signing of various agreements covering energy, food safety, and other topics, with China ranking as Canada’s third-largest export market for wood products in recent years.