Few Western organisations have succeeded in building a lasting position in the timber construction markets of Japan and China. Canada Wood stands out as one of the rare exceptions. Over several decades, the organisation has built its presence through long-term market development rather than relying solely on product exports.
Long-Term Commitment as the Foundation
Many Nordic companies specialising in timber construction have approached the Japanese and Chinese markets primarily as export destinations. A common strategy has been to identify a local partner, introduce products to the market, and expect commercial results within a relatively short timeframe. In many cases efforts have remained limited to individual projects or niche market positions.
Canada Wood took a different approach. The organisation began its work in Japan as early as the 1970s and later expanded its activities into China. Rather than focusing solely on timber exports, its objective was to take part in the long-term development of the market in collaboration with the construction industry, government bodies, and other local stakeholders.
Japan Requires Time and Compatibility
Japan was among Canada Wood’s first strategic markets in Asia. During the 1970s, the country began developing modern wood frame construction methods, creating an opportunity for long-term cooperation. Rather than focusing solely on exporting materials, Canada Wood became actively involved in technical collaboration, the development of standards, and understanding local construction practices.
In practice, this has meant contributing to the standardisation of wood frame construction, producing technical knowledge, and working closely with industry associations, construction companies, and designers. Canada Wood has also been involved in training Japanese construction professionals and developing solutions tailored to the country’s strict safety requirements.
Construction in Japan is shaped by high quality standards and stringent earthquake-related safety requirements. The acceptance of new building materials often depends on trust and technical credibility built over many years. This is still reflected today in how timber construction continues to evolve through close collaboration between industry organisations and the broader construction sector.
The Grand Ring, built for Expo 2025 Osaka, is an excellent example of the future of timber construction in Japan.
The direction of development is also reflected in the types of timber construction projects receiving public attention in Japan. The Grand Ring at Expo 2025 Osaka offers an interesting example of where Japanese timber construction may be heading. As the world’s largest timber structure, it combines traditional Japanese wood joinery techniques with modern construction methods. At the same time, it reflects broader efforts to position timber as part of the future of urban construction in Japan. Although the Grand Ring is not a direct Canada Wood project, it illustrates well the direction in which timber construction in Japan has been evolving.
China’s Market Develops in Stages
China has presented very different conditions compared to Japan. Construction continues to be dominated by concrete and steel, while timber construction remains far less established. The adoption of new building solutions also often requires pilot projects, standardisation efforts, and close institutional cooperation.
Rather than focusing on rapid scaling, Canada Wood has prioritised market development first. In practice, this has involved collaboration with Chinese construction industry organisations, property developers, research institutions, and government stakeholders. The organisation has contributed to technical capacity building, supported design practices, and participated in demonstration projects aimed at showcasing how timber construction could be adapted to the Chinese market.
In 2020, cooperation with the China Real Estate Association (CREA) helped lay the groundwork for further timber construction development. At the same time, projects were launched to pilot timber as part of energy efficient building solutions and new construction approaches.
Tianjin Eco-City provides a practical example of how modern timber construction solutions can be applied in China.
One of the most visible examples can be found in Tianjin Eco-City, where Canada Wood participated in timber construction demonstration projects as part of broader sustainable urban development goals. The objective was not simply to introduce Canadian timber to the market, but to demonstrate in practice how timber construction could function in China’s urban environment. In China, reference projects of this kind are often critical before new construction solutions can gain wider acceptance and scale more broadly.
The Future of Timber Construction in Japan and China
In Japan, the role of timber construction is expected to grow, particularly in urban areas where low-carbon building materials and the carbon footprint of buildings have become increasingly important. At the same time, an ageing population and the renewal of the building stock may increase interest in lighter, industrially manufactured construction solutions. Progress is likely to remain gradual, however, as market change in Japan often happens slowly but with a long-term perspective.
In China, the future of timber construction will depend largely on political priorities and the direction of the construction sector. Although timber construction remains a relatively small segment alongside concrete and steel, growing interest in low-carbon construction, energy efficiency, and industrialised building solutions may create new opportunities. In recent years, China has placed greater emphasis on reducing emissions in the construction sector and promoting greener building practices as part of its broader climate goals, which may also create favourable conditions for timber construction. At the same time, the market is likely to remain challenging, highly competitive, and strongly shaped by institutional priorities.
What Can the Nordics Learn from This?
Canada Wood’s example shows that in the markets of Japan and China, a competitive product is often only the starting point. A long-term position is rarely built through exports alone. Instead, it is developed through active participation in market development alongside local stakeholders. This becomes particularly important in sectors where regulation, standards, and institutional networks play a significant role in shaping demand.
The Nordic presence in Asia has generally been more fragmented and often dependent on individual companies or limited networks. This approach can work in certain niche segments, such as log construction or high-value specialised solutions, but it is difficult to build the same level of market position as actors willing to invest consistently in relationships, visibility, training, and local collaboration. In the case of Canada Wood, success was not built solely on timber exports, but on decades of market development.
This does not mean Nordic companies should attempt to replicate the Canadian model directly. It does, however, raise an important strategic question: should companies approach Asia primarily as an export market, or seek to build a position within the local ecosystem? The latter is a slower path, but often one that creates a more resilient and difficult-to-replicate competitive advantage over the long term.
About the Author
Kasperi Anttila is a specialist in Europe–Asia cooperation with extensive experience living and working in China. As an Asia expert at Kabei Oy, he focuses on China and Japan through the lens of institutions, culture, and market structures. With practical experience in the construction sector in both Finland and China, his work brings particular insight into the built environment, international business, and market development.