That is the key to the problem. In China, people can copy us.
I opened the Canada Wood office in Shanghai in 1999. At that time, the Chinese were sending us furniture and finished products made from our wood. We were sending them raw logs and they would send us back the finished products.
All that has changed. China now has a domestic market. There are 10 million housing starts a year in China. Let me remind you that the U.S. has less than 1 million. With the new rules, concrete is no longer their ideal product. They are using wood in 10% of their construction. That is becoming a new U.S. market. It has become a country that even uses value-added products such as those built from wood.
In the long term, we are clearly not going to sell finished homes from Canada. In the partnership, under the agreements signed last year, the first year, we have to send the wood, the finished products, the panels and then build a plant in China in partnership. The Chinese will then use our wood with our technologies. We are partners.
It is a whole new dynamic. We are going to create Cirques du Soleil with the wood industry rather than making only basic products.