Based on the Smile Curve and Michael E. Porter’ value chain model,this paper points out that China’s forestry industry stays at the low end of the value chain for a long time. Raw materials are imported from foreign countries and also sold in foreign countries. Then,the authors analyze characteristics and existing problems of China’s forestry industrial chain. They put forward the development direction of China’s forestry industrial chain with reference to International Paper Company. Finally,they present their recommendations for integration of China’s forestry industrial chain.
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