Chinese Furniture
Hits the High End

Buyers of high-end furniture are big winners in the latest round of the Chinese trade battle. A decision made in early November to trim proposed tariffs on Chinese-made bedroom sets is expected to trigger an influx of high-quality furniture imports that can cost far less than comparable U.S. products.

The Chinese already have had a major impact on the low- and midprice market, exporting a tidal wave of affordable beds, dressers and dining-room tables to mass merchandisers such as Rooms to Go. But specialty sellers of finer furniture have largely resisted the invasion. In part, that has been because of worries about quality. Stores also had been concerned about the specter of huge tariffs, which retailers would have to pass on to consumers on top of the already high cost of quality goods.

Last month's ruling minimized the effect of bedroom-set tariffs and lowered the chance that there will be similar tariff requests for other product such as dining-room tables and sofas.

A Chinese-made dresser from Fine Furniture Design & Marketing.

For shoppers, that means the revolution that has led to significantly lower prices for low- and midprice furniture is likely to make high-end Chinese imports more attractive. Though the ruling isn't yet final, leading Chinese furniture factories are expected to ramp up exports of costlier fine furniture. And many upscale retailers plan to place bigger orders, snapping up sleek, modernist beds, burl-wood-veneer dressers and art-deco end tables that seek to undercut costly American-made counterparts.

All this comes as Chinese furniture factory workers are learning to make furniture better. For years, the products coming out of their factories tended to feature fussy hand carving. Now, more manufacturers are striving for contemporary designs that are more challenging because flaws are so easily seen. Certain luxe features, such multiple layers of finish, require more labor. That is a task tailor-made for low-wage nations such as China, which now is building on its years of experience at the lower end.

Another twist to the trade case: It actually increased furniture-making skills in other Asian countries, because some Chinese furniture makers that feared large tariffs shifted production to countries such as Indonesia, Vietnam or Thailand.

Generally, the most consistent wood furniture finishes still are made by the highest-priced American companies. Some high-end American sellers do get at least some of their offerings from China, including Ethan Allen Interiors Inc., Pennsylvania House, and the Thomasville, Henredon and Drexel Heritage units of Furniture Brands International Inc. Now, with quality generally improving and the tariff concerns easing, these and other American makers have all the more reason to increase their relationships with China.

Of course, not all Chinese furniture is made equally. Leather sofas tend to compare favorably with American-made rivals. But sofas made with customized fabrics are generally better in the U.S. Chinese factories crank out impressive "distressed" furniture, where intentional dings and dents help hide flaws. But certain solid-wood furniture can warp during its journey across the Pacific Ocean if it isn't treated correctly.

Furniture from Asia has been improving in quality. Bolier & Co. imports pieces such as these from China and Thailand.

Fine furniture from China can be found in a small range of upscale local stores, designer showrooms and high-end department stores. Plus, brands such as Drexel Heritage and Ethan Allen that offer some Chinese items have their own stores. The furniture often is hard to distinguish from U.S.-made pieces, and small country-of-origin tags can be hard to find -- as they sometimes are located on the backs or undersides of furniture that is heavy or displayed near showroom walls. If there is no tag, shoppers should ask salespeople or store managers, which can indicate how well they know their sources.

Christian Plasman, head of Bolier & Co., a furniture marketer, has teamed up with Decca Holdings in Hong Kong to produce elegant, clean pieces such as sleek beds that sell for $4,000 at high-end U.S. retailers.

Carolyn Gomez, who helps run Mastercraft Interiors with her husband Douglas, recently placed an order with Mr. Plasman valued at about $95,000, retail. With five stores and about $50 million in annual sales, the retailer is one of the leading high-end furniture dealers in the nation. The order is part of a shift from the Gomezes' long-time resistance to Chinese imports. "The upper-end industry is definitely in for a shift toward imports," Ms. Gomez says.

Shopping for bedroom sets recently at a Fairfax, Va., Mastercraft Interiors store, Eileen Doshier quickly homed in on a contemporary-styled arrangement of oval-shaped pieces that included a $1,019 nightstand and $1,565 dresser. Ms. Doshier, of Burke, Va., didn't know where they were made, but she was impressed by their styling. All the pieces were made in China and cost about three-quarters the price of similar American-made bedroom sets.

U.S. trade regulators next month will set the final tariff rates, which are expected to match last week's recommendation. The decision reduced the proposed tariff rate for 115 Chinese manufacturers to 8.6% from 12.9%. Those companies account for 65% of the bedroom furniture imported to the U.S. from China.

The tariff rate was trimmed after regulators visited Chinese factories and recalculated their estimate of the advantages gained by those factories because they operate in a "nonmarket economy."

Similar calculations led regulators last week to lower the tariff rate for five big Chinese furniture makers that are subject to individual tariffs.

Shoppers can check what tariff is imposed on a manufacturer they are interested in by going to http://ia.ita.doc.gov/ and checking the Nov. 9 posting about bedroom furniture.

Email your comments to rjeditor@dowjones.com.