Wood-based panels combine the economic and ecological benefits of the renewable wood resource with the tailored properties of a modern composite. After reviewing the present status and prospect of the wood based panel industry thoughout the world, the author suggests that in （response） to the economic globalization and China’s entry into the WTO, the Chinese wood based panels industry should follow the sustainable development principle, better understand the forest, improve the management of operations, recycle more and pollute less, make better use of the forest resources so as to enhance its international competitiveness to supply customers better products and services at lower cost.