British Columbia’s Forests Ministry has signed a memorandum of understanding with China regarding modern wood construction, aiming to boost the local lumber industry amid efforts to diversify beyond 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, marking one of the initial agreements since Prime Minister Mark Carney’s recent visit to China.
The agreement includes China’s housing and development ministry, focusing on incorporating modern wood construction into urban renewal and rural revitalization strategies. The parties will explore sustainable approaches for green developments. According to political ecologist and China expert Juliet Lu from the University of British Columbia, this MOU represents a feasible opportunity for enhancing trade relations with China, particularly in the realm of processed lumber exports.
Traditionally reliant on carbon-intensive concrete and steel structures for large-scale projects, China’s construction sector is now shifting towards embracing wood construction methods. The agreement emphasizes the development of an industrial chain for wood construction, promoting collaboration and joint research on modern wood construction, including tall wood buildings and mass timber projects.
Lu highlighted past MOUs signed between British Columbia and China in 2010 and 2015 concerning wood-frame construction. Notably, Beijing, Shanghai, and Haikou have since revised building regulations to allow for larger wood structures. Embracing value-added products like engineered wood and mass timber is seen as a positive move that could provide a significant economic boost to the province.
B.C. Forests Minister Ravi Parmar emphasized that exploring new markets and strengthening partnerships is crucial in light of U.S. tariffs impacting the province’s forestry sector. Parmar cited recent trade missions to Japan and South Korea, as well as ongoing efforts to engage with India, as part of broader strategies to stabilize and diversify the forestry industry.
The B.C. forestry sector has faced challenges from U.S. tariffs, global economic uncertainties, and issues related to affordable fiber access. Against this backdrop, a Vancouver Island pulp mill, operated by Domtar and employing around 350 workers, announced its closure late last year.
Prime Minister Mark Carney’s visit to China, the first by a Canadian leader in over eight years, has seen various agreements signed, including those covering energy and food safety. 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.