Although China has recently expanded its forest area and inventory, it is s
till facing a severe resource crisis, featuring high demands for wood produ
cts and environmental services, a rapid depletion of natural forests, and p
oor quality of man-made forests. After analyzing the current situation, a n
ew development strategy is presented for China's forestry in this paper. Ac
cording to this efficiency-based forestry division strategy, three interrel
ated types of forestry will emerge through more efficient management in the
next 30 years: a strong commercial forestry sector including intensive for
est plantations and an integrated processing industry, a well-established e
nvironmental forestry sector, and an extensive multiple-use forestry sector
. Various policy changes for this new strategy are discussed. (C) 1998 Else
vier Science Ltd. All rights reserved.