British Columbia’s Forests Ministry has signed a memorandum of understanding with China regarding modern wood construction, aiming to support the provincial lumber industry by diversifying its market beyond the U.S. The five-year agreement, not legally binding, involves collaboration with the Chinese government and the Canadian federal Department of Natural Resources, marking one of the initial agreements following Prime Minister Mark Carney’s recent visit to China.
The memorandum includes cooperation with China’s housing and development ministry to integrate modern wood construction into urban renewal and rural revitalization strategies, focusing on sustainable green developments. Political ecologist and China expert Juliet Lu from the University of British Columbia views this agreement as a positive step towards expanding British Columbia’s processed lumber exports to China, which has traditionally favored carbon-intensive concrete and steel construction for high-rise projects.
The goal of the memorandum is to enhance the development of an industrial chain for wood construction, promoting exchanges and joint research on modern wood construction techniques for tall wood buildings and mass timber projects. Lu highlighted that previous agreements between B.C. and China in 2010 and 2015 focused on wood-frame construction, but Chinese building regulations have since evolved to allow for larger wood buildings in prominent cities like Beijing, Shanghai, and Haikou.
The shift towards value-added products such as engineered wood and mass timber is expected to provide an economic boost to British Columbia. Forests Minister Ravi Parmar emphasized the importance of exploring new markets and partnerships, especially in response to the impact of U.S. tariffs on the forestry sector. He mentioned previous efforts, including trade missions to Japan and South Korea, as well as ongoing visits to India, to strengthen and diversify the sector.
The forestry industry in British Columbia has faced challenges due to U.S. tariffs, global economic instability, and limited access to affordable resources. A Vancouver Island pulp mill, operated by Domtar and employing around 350 workers, announced closure last year. Prime Minister Carney’s visit to China, the first by a Canadian leader in over eight years, has resulted in various agreements covering energy, food safety, and other sectors. According to the office of federal Energy and Natural Resources Minister Tim Hodgson, China ranked as Canada’s third-largest export market for wood products in 2024.
