Jun 01, 2005. /Lesprom Network/. China implemented a zero tariff on imported furniture as of January 1, 2005. However, analysts say it will take time for price cuts to filter to the Chinese consumer as goods imported under the old tariff regime are still being cleared from stock. Reports indicate that profits in China's furniture manufacturing industry rose by 43% last year. Profits are reported to have risen to Yuan 3.42 billion ($413 million) from January to November 2004 and this is higher than levels seen in 2002 and 2003. In the meantime, the value of furniture exports rose and the export value of plastic furniture grew the fastest. Analysts report that the trade is expecting demand in China for cabinet units for living rooms, bedrooms and kitchens to grow fast. According to forecasts, expenditure by households on cabinets will make up 24% of the total expenditure on household refurbishment and improvement in the urban expenditure on interior furniture. The demand for cabinet is said to have been near to 800 000 sets in 2003 but Chinese consumption of cabinet units by urban families was only 6.8% of all furniture purchases which is much lower than the average level of 35% for Europe and North America. It is forecast that the growth of demand in China for cabinet units will grow rapidly and some say as many as 29 million units may be to satisfy demand within 5 years.