<B>China Seeks More Pulp</B>

China’s State Development Planning Commission announced that the country will develop more timber production bases for the paper making industry, in a bid to satisfy the demand for wood pulp.

Wood pulp accounted for 20 percent of the country's raw material for paper last year, and 60 percent of the wood pulp used in China was imported. However, in the world's paper industry, 90 percent of the raw material for paper is wood pulp on average.

The government will provide some preferential policies, such as loans, interest discount and tax cuts, said Liu.

China consumed 35.2 million tons of paper and cardboard in 2000, ranking second in the world. The demand is expected to soar in the next five years, with biodegradable paper products taking the place of less environmentally friendly plastic products. WorldSources Inc.