CANADA — As the provincial forestry sector reels from aggressive U.S. tariffs and a wave of mill closures, the B.C. Ministry of Forests has officially turned its gaze toward the Pacific to secure the industry’s future.
On Thursday, British Columbia and the federal government signed a five-year memorandum of understanding (MOU) with the Chinese government to promote modern wood construction. The agreement, signed during Prime Minister Mark Carney’s landmark diplomatic mission to Beijing, aims to integrate B.C. mass timber and engineered wood into China’s massive urban renewal projects and “green” building strategies.
Escaping the ‘Trump Tariffs’
The move signals a strategic pivot away from a volatile U.S. market. B.C. Forests Minister Ravi Parmar did not mince words, citing the protectionist policies of U.S. President Donald Trump as the primary driver for the deal.
“The tariffs imposed by Donald Trump have had a significant impact on B.C.’s—and Canada’s—forestry sector,” Parmar said in a statement. “That’s why we are exploring other markets to create new and strengthen existing partnerships to stabilize and diversify the sector.”
The B.C. forestry industry has been battered by high operating costs and a lack of access to affordable fibre, recently highlighted by the closure of a major pulp mill on Vancouver Island. For communities in the Skeena and North Coast, where forestry remains a cornerstone of the economy, the deal offers a glimmer of hope for stabilizing local jobs.
A Focus on High-Value Exports
Unlike previous agreements that focused heavily on raw log exports—a practice often criticized by local labor groups for “exporting jobs”—this MOU emphasizes “value-added” products.
Juliet Lu, a China scholar and political ecologist at the University of British Columbia, noted that Chinese construction is shifting away from carbon-intensive concrete and steel toward sustainable materials.
“We have new technologies of engineered wood that allow for building bigger buildings, like what we see in China,” Lu said. “Any shifts in China’s market demand for Canadian timber are going to have a huge impact on the Canadian market, even if it looks like a drop in the barrel for the Chinese market.”
The Skeena Connection: A Local Hurdles
The success of this deal in the Skeena region hinges on resolving local supply issues. Skeena Sawmills in Terrace, which was historically designed to serve the Chinese market with metric-dimension lumber, remains in a state of transition.
While the assets were sold in 2025 to a company controlled by the Kitsumkalum First Nation, a recent B.C. court ruling quashed the transfer of a major forest license due to a lack of consultation with the Gitanyow Nation. Until these jurisdictional disputes are settled, the region’s ability to capitalize on the new China deal may be limited by a lack of steady fibre supply.
The Gateway through Prince Rupert
Logistically, the Port of Prince Rupert stands at the center of this new trade corridor. As the closest North American port to Asia, Prince Rupert offers the fastest transit times for B.C. wood products. Federal Energy and Natural Resources Minister Tim Hodgson confirmed that China remained Canada’s third-largest export market for wood in 2024, a position this MOU is designed to bolster.
Prime Minister Carney will remain in China until Jan. 17, with further deals expected in the energy and food safety sectors. For the workers of the Skeena, the hope is that these high-level signatures in Beijing will eventually lead to whistle-starts at mills back home.
