∷XUZHOU FEIYA(SANHE) WOOD CO.,LTD.∷

Since 2006, the Chinese Government has implemented a series of tax adjustments, such as levying consumption tax, cutting export rebates, imposing export tax, interdicting the export of rosewood furniture and disposable chopsticks made of imported timber, etc on wood products like wood-based panels, wood flooring, disposable chopsticks, rosewood furniture, wood door, wood window, and wood chips. From the facts and figures (see the attached table) of wood products import and export in this first half year, we can see the original intentions of the State via these frequent policy adjustments have been embodied; China’s timber import & export market has entered a stable and balanced stage from a period when both imports and exports grew sharply. We are now to analyze the changes appearing in China’s timber import & export market in the first half year of 2007.