In 2003, Chinas forestry firms contracted several forest areas in Germany and exported back about 50,000 m3 of timber (worth USD 7.5 million) to China. Since then, more Chinese firms have come to Germany to acquire logging rights. The timber is being used by the Chinese furniture industry with the products being sold in Europe and China. There is a number of advantages in this strategy. Firstly, German policies for forestry management operators are favourable. Forestry firms do not pay value-added taxes and may even receive subsidies in some states. Secondly, infrastructural facilities and transportation are well developed in the forest regions. Third, high quality and precious hardwood species such as beech and oak are found in German forests. Germany is a reliable, long-term and potential timber supplying country and invites more Chinese firms to come to the country to do business. (Source: Timberhunt.com)