This paper is the first part of the subsequent research reports about the project of "Processing,Evaluation,and Application of Dimension Lumber from Chinese Commercial Wood Species" sponsored by the Chinese National Key Program for Applied Research. This paper reviews the background,objectives,and latest research developments in the area of dimension lumber processing and application in China for the previous years. It also discusses how to develop a necessary and unique processing technology according to the available forest resources and future wood product market needs in China. This discussion will provide guidance and technical support to the Chinese wood industry for its structural reform and technological upgrade.