The Research About How Financial Crisis Affect China's Plywood Industry

China is the largest export country of plywood in the world. Plywood industry plays an important role in China's forestry industry. The international financial crisis which occurred in 2007 has affected global economy seriously, China's plywood industry was affected, too. This paper analyses the mechanism about how financial crisis affected China's plywood industry and evaluates the results of influence. Paper provides proposal for sustainable development of China's plywood industry in post-crisis era.China's plywood industry developed quickly in recent years, but there are some problems in industry such as factory's scale is too small, technology is low, export market concentration and dependence on overseas raw materials are high. This financial crisis affected China's plywood industry by the transmission mechanisms of demand, exchange rate and price. The crisis deteriorated the difficulties of plywood industry. It led market demand and export fall, enterprise's financing become difficult and supply of raw materials decrease. According to the timber processing industry's production index and new export orders index, China's plywood industry was affected by crisis seriously in 2008. International competitiveness of plywood also declined.The article provides proposal for government, industry association and enterprises to achieve sustainable development of plywood industry in post-crisis era. Government should make policies about industrial clustering and technological innovation to accelerate the industrial upgrading. Industry association should play it's role on set up information exchange platform, standardize the order of market competition and improve industry's standard. Enterprises should improve quality of their products, expand export market and promote their own brands.