Strategic Analysis of Exporting Softwood Timber to China

Normally one associates competitive advantages with companies instead of countries. However, when it comes to international trade it is important to try and understand why some countries have had more success than others in exporting different commodities. The goal of this project is to outline and conduct a strategic analysis of countries exporting softwood logs and sawn wood to the Chinese market and address the issues China’s demand will have to face. This issue is that Russia is proposing and already in the works of initiating a ban on exporting softwood logs in January 2022. With Russia withdrawing, this will leave a large gap in the market share for which other countries will have an opportunity to capture. Therefore, this project focuses on a comparative analysis of what strategies countries could implement to sustain this demand. China has grown and continues to be the largest consumer of softwood in the world. This has led to sustainability being a large concern for Russia who has been the longest major supplier of softwood timber to China. China also knows that by itself it does not have enough wood to support its entire population and relies heavily on importing timber from other countries. Now with Russia discontinuing to export softwood logs in 2022, China will need to find a way to import enough softwood logs to meet its demand. The main question this project tries to answer is how and which countries will be able to do this. By analyzing the external environment of China’s softwood imports, the internal environment of countries, and then concluding with a SWOT analysis this project will try to assess which countries have the capabilities and resources to jump on this opportunity.