State government officials in the eastern Appalachian Mountain states couldn't be more pleased, and in August they rolled out the red carpet for a traveling group of Chinese lumber buyers.

For over a month, state government officials had been spreading the word that Chinese lumber buyers on August 26 would be heading to Asheville, North Carolina to meet with log and lumber vendors. It was a convenient win for local business, since the nearby state of Pennsylvania had already paved the way for this sizable group of China's buying agents to attend the largest wood show in America, the IWF (International Woodworking Fair).

The IWF was held in Atlanta, Georgia—just a four-hour drive from Asheville, so North Carolina took advantage of the opportunity. The Chinese delegation's first stop was at a reception held at the Western North Carolina Agricultural Center just outside of city.

In a message via email from Daniel Holt, an International Finance Specialist with the U.S. Export Assistance Center, to NC-based lumber sellers, "This reception is being sponsored by the State of NC. The purpose is [to] allow sellers of lumber and sawmills to meet a group of Chinese lumber buyers."

Robert Hosford, an International Trade Specialist with the North Carolina Dept. of Agriculture received the group of Chinese buyers into Asheville with a welcome speech of appreciation:

"My name is Robert Hosford, I work for the Department of Agriculture here in North Carolina. I go to Shanghai next Tuesday. Thank you for your time. We're honored by you coming to visit." The speech was simultaneously translated into Chinese for the crowd and four native Chinese speakers stood nearby to assist with interpretation needs, and to facilitate negotiations.

North American hardwoods, especially those from near the Appalachian mountain chain are receiving attention from buyers all over the world, and many U.S.-based suppliers have seen their international orders increase, especially from China. To local businesses, the delegation meant two things: jobs and money. According to data from Foreign Trade program of the U.S. Census Bureau, last year North Carolina alone exported 636.5 million kg of lumber and wood products to China.

"We've been into China now for 10 years. We only handle three species: red oak, white oak, and yellow poplar. Eighty-five percent of our production is now export. When I started, it was just 20 percent. We've grown our volume," said Fred Hardin, a lead salesman with Gilkey Lumber, based out of Rutherfordton, North Carolina.

Hardin dismissed criticisms that lumber companies are "selling out America's forests to China". Although the political blow-back might cause resistance, especially from environmental activists, sellers on site assure that sustainable logging practices over the last hundred years have resulted in larger surpluses of timber, and no one need worry over losing American lumber or forests to international demand.

"It's not an option. If you're going to stay in business, you're going to do business in Asia. Can't count on Europe, they're broke," Hardin said.

International sales, like those to China, have allowed the American lumber industry to survive the financial crises and preserve jobs in a tough economy where unemployment hovers around 8 percent. In North Carolina, the unemployment rate is 9.4 percent.

"International markets are not that much different than domestic markets. In fact, you probably have a little more financial security because of the sale—whether it's letters of credit, etc. All the folks we sell to are at least as good as domestic payments would have been. They're buying all the grades—whether it's for furniture, flooring, millwork, or whatever."

The Chinese delegation was composed of twelve Chinese buyers from eleven Chinese mainland-based companies, all carefully vetted, and coming from well established companies like Dalian Haifeng Walnut Co., Ltd., Dongguan Cheng Ji Wood Co., Ltd., Shenzhen Tianrun Wood Industry Co., Ltd., Xiamen Hanhong International Trade Co., Ltd., Shenzhen Senhui Import & Export Co., Ltd., and Shanghai Yuanye Wood Co., Ltd. The delegates said they are attracted to the high quality and affordable prices of East Coast hardwoods.

"[In] North Carolina there are many forests and industry here. [The] South [of the United States] is cheaper. The trees grow fast. For Europe we normally buy beech. In North America, the West Coast is normally for soft wood. East Coast is for hardwood. For here [North Carolina], the price is competitive, so it's a good place," said Wu Lixian, a buyer for Shanghai Sunline Wood Co., Ltd., who came to Asheville shopping for red oak, white oak, yellow poplar, and ash.

"I travel all the time to China, and these are some big companies," said Hosford. "They're here for business, and they need the product too. It makes more sense for them [Chinese buyers] to come over here, because we can get them a better price and higher quality product too. They really like what we have here on the east coast."

Steve Staryak, a lead salesman with Lawrence Lumber Company, based out of Maiden, NC, says yields on local species like oaks and poplar are better than the rubber woods or other species in China

"When a factory looks at what they're going to use to make a product, North American hardwoods—whether it's North Carolina, Virginia—the Appalachian region is good quality timber. North Carolina is priced competitively, and the quality of the lumber is good. Oak from West Virginia, is a lot different than eastern Carolina," said Staryak.

"We've got more timber now than we had a hundred years ago," he said. "We're the only country in the world that does such a good job with what we do here … We ship to Europe, the Middle East, Asia. I'd like to do more domestically, but you have to go where the economy is better."

Staryak said local lumber companies are looking at long-term pricing strategies, rather than making a quick buck.

"Obviously, [we] want to get the best price you can, but you also look at what they buy, do they complain, do they buy all the products that you produce. I want to say that we get the best price we can, but I'll take all the different factors [into consideration]. It's about relationship too," he said.

Relationships are exactly what North Carolina State officials hope to build with the invitation to the Chinese delegation. When the dust settled, one thing remained clear: the future for U.S. lumber sales is in the East.