The project covers three counties Jinggu, Zhenyuan and Puer in Simao prefecture, Yunnan. Simao has a dominant South Asia tropical climate with rich rainfall and forest resources. With Simao pine trees as the main species, it is the second largest forest area in Yunnan. The total forest growth per year is 8.603 million m 3 .
Simao pine belongs to a long fiber tree and is superior to masson pine.
The factory has created conditions of sustainable utilization, but due to its small scale and insufficient economic result, an extension is needed to realize a joint improvement in ecological, social and economic benefits. The development of paper making will bring about an overall development in other industries like forestry, power, coal, chemistry, traffic and servicing. It is difficult for China to meet the demand, so more importation is expected. Analyses of Investment Structure and Economic Benefit 1. Foreign Investment Requirements 1.