China furniture industry has made a remarkable progress as well as the whole industry level. In 2005, the furniture output was 339.9 million pieces, rising 11.41% compared to 2004; the total production value (at current price) of the furniture manufacturing industry reached RMB 138.904 billion, and the sales revenue amounted to RMB 133.706 million, each up 27.40% and 27.43% over the same period of 2004.

In 2006, the furniture industry still enjoyed a boom in production and sales, and the finished-product output, sales revenue and profit all experienced a dramatic increase. In the first quarter of 2006, the production value of China furniture manufacturing industry amounted to RMB 37.992 billion, increased by 31.78% over 1Q 2005; the sales revenue amounted to RMB 36.538 billion, increased by 29.03% over 1Q 2005; and the profit reached RMB 2.329 billion, increased by 25.15% over 1Q 2005.

As the whole industry develops, the international competitiveness of China's furniture industry improved dramatically, and China has now become the powerful nation for the export and production of solid wood furniture. In 2005, China’s furniture export value reached USD 13.767 billion, a year-on-year growth of 32.98%, which ensured China to be the largest furniture export country over Italy in total amount. In 2006, the furniture industry continued to keep a higher growth rate, and the export value amounted to USD 4.042 billion in the first quarter of 2006, rising 29.31% over the same period of 2005. And of which 57.87% was from solid wood furniture export. Actually, China’s solid wood furniture has grown increasingly competitive in the international market and its export volume has topped the world.

The Chinese government put forward that prosper the rural economy thoroughly and accelerate the pace of urbanization, which aims to drive the consumption market further and expand the consumption field. The measure will definitely further promote the housing construction in China, and accordingly, the related industries will also see a progress. As a result of the development of the housing industrialization, the house, entering into the market as a commodity, has provided broad development room for furniture and matched products. Basically, there is completed construction area of about 1.2 billion square meters every year in China, which is 6 times that of all over the Europe. And of these, the urban housing construction accounts for 500 million square meters, which can provide 5 million families with houses if calculated at 100 square meters per family. In another word, about 5 million families each year need to buy various kinds of budget furniture for their new houses, so huge potential exists in Chinas furniture market.

After the reform and opening-up policy, the furniture industry started developing towards Guangdong, Zhejiang, Northeast, North China, and current four industry regions gradually came into being. They are respectively, South China furniture industry region centered by Guangdong and Fujian; East China furniture industry region centered by Zhejiang, Jiangsu and Shanghai; North China furniture industry region centered by Beijing, Tianjin, Hebei and Shandong; and Northeast furniture industry region centered by Shenyang and Dalian.

Although the regional markets of China's furniture industry are getting concentrated, medium-small furniture enterprises still take the majority, and moreover, the industrial concentration is quite low because there is no any enterprise whose market share can exceed 1% until now. This, on one hand, will offer great opportunities for the advantageous counterparts, but on the other hand, more small enterprises with poor management and weak competitiveness will be eliminated eventually.

Driven by the market demand, China's furniture industry will arouse an investment heat and this upsurge will last a few years as a result of further enlarged investment scale as well as the diversified investment forms.