Integration of Forestry Industrial Chain in China

Based on value chain model by Michael E. Porter and the theory of Smile Curve by Stan Shih, this paper points out that the production mode of Chinese forestry industry is low-end value chain which imports raw materials and exports manufactured goods. Then the authors analyze the characteristics of Chinese forestry industry chain and the problems existed in different levels of forestry industry chain. Taking the International Paper Company for an example, the authors point out the development direction of Chinese forestry industry chain, and propose recommendations for integration of forestry industry chain.