The production capacity of flooring in China has accounted for 10% of the total in the world. However, currently, the prices of flooring raw materials further rose. This situation highly effected the development of Chinese wood flooring industry.

In the past decades, Chinese economy developed rapidly, with the average annual growth rate of 9%; the annual increase of population in China is 11 million; the new rise of purchasing power amounted to RMB63- 65 billion. This huge demand offered great opportunity and potential for the development of Chinese flooring industry.

The competition of flooring industry in the future mainly focused on resources and brands. The shortage of up-stream resource highly restricted the further development of flooring companies.