British Columbia’s Forests Ministry has signed a memorandum of understanding with China regarding modern wood construction, aiming to support the provincial lumber industry’s growth amid efforts to diversify away from the U.S. market. The five-year agreement, not legally binding, involves collaboration with the Chinese government and the Canadian federal Department of Natural Resources. This partnership is among the initial agreements formed with Beijing following Prime Minister Mark Carney’s recent visit to China.
The memorandum outlines cooperation between British Columbia and China’s housing and development ministry to integrate modern wood construction into urban renewal and rural revitalization efforts. The focus is on exploring sustainable approaches for green developments. According to Juliet Lu, a political ecologist and China expert from the University of British Columbia, the agreement represents a promising opportunity for British Columbia’s processed lumber to access the Chinese market on a larger scale. Historically, China has heavily relied on carbon-intensive concrete and steel for its large-scale construction projects.
The goal of the memorandum is to enhance the development of an industrial chain for wood construction, encouraging exchanges and joint research on modern wood construction methods, including tall wood buildings and mass timber projects. Lu highlighted previous agreements signed in 2010 and 2015 between British Columbia and China on wood-frame construction. Notably, Chinese building regulations have evolved to allow for larger wood buildings in major cities like Beijing, Shanghai, and Haikou.
Lu emphasized the potential economic boost for British Columbia through the shift towards value-added products like engineered wood and mass timber. Ravi Parmar, B.C.’s Forests Minister, stated that the memorandum is part of the province’s strategy to explore new markets and strengthen partnerships in response to U.S. tariffs impacting the forestry sector. Parmar mentioned trade missions to Japan and South Korea, as well as Premier David Eby’s current visit to India, as additional steps taken to diversify and stabilize the forestry sector.
The B.C. forestry industry has faced challenges due to U.S. tariffs, global economic uncertainties, and limited access to affordable resources, with a Vancouver Island pulp mill recently announcing closure. Prime Minister Carney’s visit to China, the first by a Canadian leader in over eight years, has also resulted in other agreements covering various topics such as energy and food safety. Canada’s federal Energy and Natural Resources Minister Tim Hodgson’s office highlighted that China was the third-largest export market for Canadian wood products in 2024.