Using forest resources develops the wood-based panel （WBP） industry in a sound way, which will, in turn, play an effective role in saving forest resources, protecting the ecosystem and advancing the sustainable development of forestry. After reviewing the course of more than ten years of rapid development, as well as the current situation of China’s WBP industry, the authors pointed out that many Chinese wood-based panel manufacturers are facing material shortages, poor product quality, and distribution problems. The authors also presented innovative measures to reverse these problems for domestic plywood, medium density fiberboard （MDF）, and particleboard manufacturers, respectively. Finally, the authors suggested that utilizing the timber from fast growing plantations, desert shrubs, and waste wood should be the best way, not only to increase the raw material resource for the WBP industry, but also to promote development of plantations.