Foundations of a potential billion-dollar industry will be laid this month with the arrival in New Zealand of two high-level delegations from China. With its recent rise to the World Trade Organiation after two decades of economic reforms, China is experiencing rapid development which in some areas is fuelling a building boom. Traditionally, construction in China has been based on concrete, stone and brick, but wood is becoming increasingly popular in both new building and in the expanding do-it-yourself sector. To meet this rising demand, New Zealand exported $364 million worth of logs, wood pulp, sawn timber, paper and paperboard to China in the year to March 2002. "That's not too bad," Forest Industries Council chief executive Stephen Jacobi said. But he believes it is going to get a lot bigger and better. "I don't want to put a figure on it, but I expect our exports of wood to China to increase very significantly over the coming years, and if we get pinus radiata accepted more and more I don't see why it can't become one [a billion-dollar industry] in the future." To meet that aim Mr Jacobi said the first thing China needed was a building code which validated wood and, for New Zealand's purposes, specifically pinus radiata as an approved building material. "We've been working with a group who have been designing a building code for quite a while now and that has included us making several visits to China to explain the advantages of using pinus radiata." Now, in what he describes as the "crucial next step", the Chinese Building Code Drafting Group will visit New Zealand, arriving on November 20. "They will spend about a week here and will travel from Auckland to Whangarei, Rotorua and the Bay of Plenty. We will show them all aspects of the production, harvesting and use of pinus radiata. He said the Chinese building code drafters would be shown pinus radiata's construction suitability, as well as the practical applications of timber-framed construction. At the same time, China's Vice-Minister of Construction, Liu Zhifeng, will be visiting Auckland, Rotorua, and Wellington. Mr Liu is in charge of approving new technology and materials for housing in China, so is considered a key contact in promoting pinus radiata. A spokesman for the Ministry of Foreign Affairs and Trade said Vice-Minister Liu would also visit forests and plants, but his trip would have a much more political focus. Mr Jacobi said Mr Liu would be focusing on why it would be in China's interest to diversify its sources of wood. "North America is very active in promoting their wood, and as we are competing with them it is crucial for New Zealand to take this opportunity to impress on a crucial official like Mr Liu the value and qualities of pinus radiata." He said there were several factors that would drive future demand for New Zealand timber in China. "Basic demographics, growing affluence and the slow-down of their own forestry production means new building materials are needed in China. And New Zealand needs to be part of the action especially with our growing wall of wood. Therefore, these visits are crucial to getting into the China market as the key to access is a building code which approves pinus radiata.