Bamboo: China s take
Following market reforms, the Chinese bamboo sector has been transformed over the last 20 years. Bamboo land* which used to be collectively owned by communities has been largely contracted out to farmers for 30-50 years on a family basis. State monopoly in purchase and marketing of bamboo products was abolished in the mid-1980s and the market for bamboo liberalised.
Bamboo, classified as an agricultural commodity, used to be procured and distributed only by Supply and Marketing Cooperative, a state agency. In 1980, the government introduced the quota system: farmers were assigned quota of delivery of forest products to the state at the administrative prices set by the state. After fulfilment of the quota, farmers were allowed to sell their products in the market or to the state at negotiated prices. Another policy introduced in 1981 distinguished forest materials into two types of standard forest and non-standard forest. Non-standard forest may be sold by farmer at market.
In 1985, state procurement of bamboo products was abolished, and the market for bamboo was completely opened. Bamboo prices were determined by the supply of and demand for bamboo at the markets. Associated with the objective, important policy reforms were made to encourage development of all forms of firms in rural areas. Under this, township and village enterprises, and private firms flourished. This paved the way for growth of rural industries, including those processing and manufacturing bamboo products, in the late 1980s and the 1990s. Along with domestic institutional reform, vigorous measures were taken to open-up the Chinese economy to the world. Policies to attract foreign investment and encourage export of Chinese produced goods were implemented. The shifts in the policy stance and economic environment favoured exports of bamboo products.