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Furniture is necessary consumer goods of people and this precondition defines a huge market for the industry. Furniture industry also has a very long history. It develops constantly along with the basic necessities demands of people and the improvement of human’s living standards. In recent years, with the advance in industry, a variety of new technologies and new materials are constantly applied in furniture industry on the basis of traditional manual work, China’s furniture industry has shown new vigor and appearance.

China’s furniture industry showed a more robust development momentum in 2005; both the gross value of production and export value rose sharply and the furniture manufacturing industry realized a total industrial output of RMB 138,637,066,000 and total sales revenue of RMB 133,706,192, 000. And notably, China furniture import tariffs had reduced to zero in 2005, but the furniture imports saw a decline, showing the strong competitiveness of domestic furniture. In addition, huge furniture distribution firms came forth constantly, industry was upgraded comprehensively and featured regional construction made great achievements in the same year. China had initially showed the style of a furniture industry power.

The overall technological level of China’s furniture industry was greatly improved in 2006. Through the introduction of advanced manufacturing equipment from developed countries, China’s gap with the world’s advanced level continues to narrow, which makes enterprises improve their technical level, improve their product quality and enlarge market supply at the same time. The furniture manufacturing realized an accumulative total industrial output value of RMB 185,086,563,000 the whole year and accumulated product sales of RMB 178,787,644,000. Furniture export continued to maintain a rapid growth momentum in 2006, which indicated that China’s furniture exports would enter into a new stage of development.

Over the past ten years, China’s furniture industry has experienced a period of rapid development; focused on expansion in quantity and initially established a complete internationally compatible industrial system with complete categories and furniture products can meet the needs of the international market and people’s life. In the future five to ten years, in the big background of international furniture industry transfers, China’s furniture industry would usher in the second period of rapid development, which not focuses on expansion in quantity any more but on the improvement of quality.

Furniture industry will be faced with new challenges in the next five years – short supply of wood and other furniture raw material resources; improvement of energy source and transport prices; enhancement of environmental requirements; and lack of technical and management personnel will be the constraint factors of industry development.

Therefore, high technologies should be adopted to transform traditional industries, change the growth mode, improve product quality and realize the goal of turning from a big furniture production country to a powerful one. The good investment environment and industry supporting level as well as cheap labor force of China will continue to attract large foreign investments. The appreciation of the euro and decline of U.S. dollar lead to European furniture enterprises raise their raw accessory prices and their export suffers suffocation. Meanwhile, it also promotes the international furniture industry to adjust structure and accelerate the transfer to China. Diversification of furniture export countries and regions as well as the diversification of export products is the favorable opportunity for the rapid development of China’s furniture export.