In 1996, Home Way, a store modeled after Home Depot, opened its doors in Tianjin. The company plans to build a chain of stores across China. More such outlets are planned in coming years. Remain A number of factors limit China's market for U.S. wood products. Chinese importers note that U.S. products generally cost more than either domestic items or imports from Southeast Asia and Africa, which has led to widespread use of products from these regions in flooring, paneling and furniture.
Confusion surrounds the issue of whether China's wood quotas continue to restrict trade.
China continues to limit the right to import wood products to licensed firms, although several factors alleviate the full force of this restriction. Reportedly, many joint ventures and Taiwan sole proprietorships import products for resale in China, and some Chinese companies with licenses import products for other firms. Nevertheless, in regions lacking a strong commercial infrastructure, import license requirements can effectively bar imports, particularly in the minor markets of the interior provinces. China has many middlemen in its distribution system, and each charges 12-15 percent of the product price for reselling. Markups can add 50 percent to the import price.