Small and medium sized wood processing enterprises (SMFEs) in China play a vital role in the domestic and international markets for processing wood products. China’s imports of tropical logs accounts for around half the global trade in tropical logs The SMFEs account for around 90% of the total output value of China’s timber enterprises. The majority of the tropical wood processing SMFEs in China do not understand the issues of procurement of timber from legal and sustainably managed tropical forests.; they do not appreciate the international market requirements for verified legal and sustainable sourcing, chain of custody or the importance of contributing to the demands of their overseas buyers in respect of transparent corporate social responsibility. China's response to sustainability in tropical forestry, production and trade or the success of FLEGT is largely influenced by the actions of SMFEs.
This project will provide the means for SMFEs to become equipped for procurement of timber from legal and sustainably managed tropical forests. SMFEs will be surveyed to assess the status of their procurement management. Training and advice will be delivered to enterprises along with information (via a technical bulletin) on marketing, trade, procurement and corporate social responsibility. Policy suggestions will be made and selected SMFEs will be guided through COC certification. A platform for better communication between SMFEs, government and other stakeholders will be established.