Over the past 40 years, China's forestry has undergone rapid change. Forest coverage and stocking have improved significantly, and forestry output value has increased tremendously. Moreover, China has established a modern industrial system for the manufacturing and sale of forest products driven by market and institutional forces, and the economic structure of forestry has changed with the secondary and tertiary industries now dominating the primary. Additional adjustment in this structure is seen in the fast growth of forest recreation and tourism and non-timber forest products. China has also become the world's major trader of forest products. Even though the country's forestry and forest products industry have made great achievements, there remain a series of problems, as reflected in the poor quality and productivity of forests, especially its plantations, and the expanding gap between domestic timber production and consumption and between the provision of other forest ecosystem services and their demand. Further reforms are necessary to improve the management governance and incentive for the collective and state-owned forests. China's forestry reform and development model can be an important reference for the international community.