After the impact of world financial crises the economy in China is on the way of V shaped recovery. With increasing of economic growth rate,business confidence,domestic demand and export,the demand for wood based panel and other wood related products is steadily growing. This demonstrates the huge potential of the investment market. Large amount of Private Equity capital has started a new round of investment into the wood-based panel industry and speeded up the industry and market consolidation. The study discusses how the wood product industry to face the challenges to the changing economic environments.