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Fact box: The development of the under-forest economy in China

By LI SHANGYI | CHINA DAILY | Updated: 2025-11-25 09:24
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According to data from the National Forestry and Grassland Administration, China has a forest area of 231 million hectares, with economic forests covering approximately 46.67 million hectares and generating an output value of around 2.2 trillion yuan ($309.43 billion).

Over 40 million hectares of land are utilized for under-forest economies, which encompass various industrial models, including under-forest planting, under-forest farming, the collection and processing of related products, and the use of forest landscapes. The under-forest economy provides employment for around 34 million people and supports 950,000 business entities, generating an annual output value exceeding 1 trillion yuan.

Fourteen provincial-level regions in China have over 1.33 million hectares dedicated to under-forest economic activities, and nine of them report an output value surpassing 50 billion yuan.

The under-forest economy has the added benefit of not competing with agricultural land used for grain and other crops. It creates new opportunities for increasing farmers' incomes and offers a sustainable pathway to achieving both green development and wealth creation.

Developing under-forest economies and strengthening the forestry and grassland industries are highlighted in the recommendations for the 15th Five-Year Plan (2026-30) adopted at the fourth plenary session of the 20th Central Committee of the Communist Party of China in October. The recommendations emphasize that these industries are green, wealth-generating sectors that can act as a key "green engine", driving rural vitalization and advancing the goal of common prosperity.

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