Illegal timber harvesting is unsustainable and takes place around the world and in virtually every country that engages in forest harvesting. However, while the extent of these activities may be quite limited or negligible in some countries, in others they can lead to significant forest depletion, and subsequent biological and economic losses. China’s wood products industry has become reliant on imports of logs to fuel its growth. Its rise as the predominant wood manufacturing center in the world raises an interesting question regarding the role illegal logging has had in developing the sector in China and how policies that might limit the level of illegal logging activity may affect its future development.