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(a) Intensive and Multi-functional Protection Forest Plantation Project The project implementation period was from 1995 to 2001 and the project area covered 313 counties of the 17 provinces (autonomous autonomous regions and municipalities) of Hebei, Shanxi, Liaoning, Heilongjiang, Zhejiang, Anhui, Fujian, Jiangxi, Shandong, Henan, Hubei, Hunan, Guangxi, Sichuan, Chongqing, Guizhou and Yunnan provinces. The total investment was 333 million USD, of which the World Bank loan amounted to 200 million USD. Afforestation area was 1.031 million hm2, including intensive plantations of 749 thousand hm2 and multi-function shelter of 28.2 hm2. After the completion of the project, it’s predicted that the cumulative output would include the timber volume of 106.31 million m3, fuelwood of 15.32 million t, tapping of 200 million kg, various kinds of fruit of 2 billion kg, bamboo and leaves of 6.298 million t, and a portion of forest products.   (b) China Nature Reserves Management Project The project is a "bundled" project to the forest resource development and conservation project, whose objective is to strengthen the nature reserve of biological diversity conservation through an innovative organization and management, program development, skills development, information dissemination and community participation. The project implementation period was from 1995 to 2001, involving 11 nature reserves of 5 provinces of Yunnan, Jiangxi, Fujian, Shaanxi and Hubei, with the total investment of 23.6 million USD, of which the Global Environment Facility grant was 17.9 million USD. The implementation of the project has played a positive role on strengthening the construction of China\’s nature reserves and improving the level of nature reserve management.  

Asian Development Bank loan project Since 2001, the forestry system has implemented a total of 2 Asian Development Bank loan projects, with loans of 22 million USD and tying up the Global Environment Facility grant of 12.46 million USD. At the same time, in line with the western development strategy, the Chinese government, the Global Environment Facility and the Asian Development Bank have collaborative developed the national planning framework on combating land degradation in arid ecosystems, with the planning of investing 1.5 billion RMB from 2004 – 2013 and using the integrated ecosystem management approach to solve the problem of land degradation.

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The use of foreign capital is an important driving force to accelerate the development of forestry and also an important component of economic restructuring, promoting industrial upgrading and enhancing the international competitiveness of forestry in the new period. Practice has proved that the active use of foreign capital not only easing the shortage of funds for forestry construction, introducing the advanced technology and management methods, expanding the total volume of forest resources, promoting the forestry ecological construction, but also increasing the income of the farmers in the project area, promoting the eco-building and the economic and social sustainable development.  

Since the reform and opening-up, China’s forestry system has used the total amount of foreign direct investment of nearly 20 billion USD, which have been mainly distributed in Guangdong, Guangxi, Fujian, Hainan, Hubei, Jiangsu, Shandong and Heilongjiang provinces (autonomous regions). The investment is used for creating industrial raw material forest areas, artificial panels, furniture, pulp and paper, wood products, forestry products, cultivation and processing of forest by-products and local specialties. According to the promulgation of the "Industrial Catalog for Foreign Investment", the encouragement of foreign investment in the field of forestry include the construction and management of ecosystem environmental protection, such as wood (bamboo) creation and seeds nurture, flower production, construction and operation of nursery base, planting trees and grass for combating desertification and soil erosion, the development and production of new technologies and products, such as the comprehensive use of shoddy and little fuelwood and bamboo, and the new chemical products, the development, storage, preservation, processing and utilization of all kinds of famous high quality forest products, the integration of forest construction and operation (joint venture) containing the chemical wood pulp with annual production of 300,000 t or more, the chemical mechanical wood pulp with annual output of 100,000 t or more and the wood pulp raw material forest base, forestry machinery manufacturing, the development and production of forest chemical and biological pesticides with high efficiency, low toxicity and residue.    

The non-governmental cooperation and exchanges on forestry mainly refers the cooperation and exchange of forestry between China and non-governmental organizations (NGO), which was initiated in early 80s of the 20th century and mainly cooperated with World Wildlife Fund, Wetlands International, IUCN, International Union of Forestry Research Organization (IUFRO), IUCN and other organizations. After the United Nations Conference on Environment and Development, the international community has initiated an unprecedented "environmental craze". Since the establishment of International Forestry Cooperation Center of Chinese State Forestry Administration (IFCC-SFA), the development of forestry non-governmental international cooperation and exchange has been accelerated, the progress of forestry non-governmental international cooperation and exchange has been enhanced and the areas of cooperation have also been extended from the simple friendly contacts to the academic exchanges and project cooperation, co-sponsored international conference, etc. At present, the State Forestry Administration has established business contacts with more than 30 bilateral and multilateral non-governmental international organizations and institutions, with the cumulative funding of various projects nearly 100 million RMB and over 30 projects are now under implementation.  

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