Changes in Chinese wood-based exports to the U.S.: Post Lacey Act amendment

Abstract

The recent adoption of timber legality legislation in the U.S. (the Lacey Act 2008 amendment) requiring timber imports be sourced from legally harvested wood could have profound impacts on China's re-exports of manufactured wood products to the U.S. This study examines empirically how Chinese wood manufacturers’ sales to the U.S. have changed in response to the Lacey Act. A sample of 225 Chinese wood manufacturers was drawn from two trade shows in Shanghai, China in 2013. The results reveal that Chinese companies’ awareness of the Lacey Act has played an important role in their decision to export to the U.S. over the last five years. The companies who are less familiar with the Lacey Act tend to withdraw from the U.S. market and focus on domestic market. Also the smaller Chinese companies were more likely to withdraw from the U.S. market in the aftermath of the Lacey Act as compared to their larger counterparts. Finally, the Chinese companies that have increased their imports of raw materials from the U.S. were found to have increased their sales to the U.S. market over the last five years.