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The government put forth the following several guidelines:

--- Launch an aggressive tree-planting program and every citizen is encouraged to participate in it; 

--- Take ecological benefit, economic benefit and social benefit into consideration with ecological benefit first;

--- Combine the protection, growth and management together, and take advantage of the forest resources in a sustainable way;

--- Adhere to combining state regulation as the leading factor with market regulation and implement categorical operation and management.

--- Comply with the laws of nature and economics. Conduct a proper configuration of arbors, shrubs and grass to have a balanced growth of both city and countryside in respect of the forestry.    

--- Develop the forestry through science and education and rule forestry according to law.

Major policies

The Chinese governments at various levels pay great attention to the forestry management and many supportive policies have been put forward, including:

--- Fiscal policy: the public finance supports the forestry development. The state revenues have special funds for natural forest protection and converting farmland to forests. Forests ecological benefits compensation system has launched across the country and ecological efficiency compensation fund has been established. From 2010, the central government provides benefits for every state-level public welfare forest at RMB 5 Yuan per mu (approx. 0.666 hectares), RMB 10 Yuan for collective-owned forest. The government also offers benefits to investment by the public in terms of tree-planting, cultivation, protection and management. Beginning from 2009, the central government has taken steps to provide subsidies for forest tending, improved varieties of forest tree, tree-planting and forestry machineries. In addition, the government provides subsidies for wetland protection as well. The central government also provides special funds for forestry science & technology promotion demonstration, forestry pest prevention, etc.

--- Policies for capital construction investment: the government is responsible for the investment of construction of the public welfare forests and major forestry infrastructure. The ecological projects of vital importance to the nation’s economy and the people’s livelihood would be the top priority of the state policy. The local budget is responsible for the regional ecological projects planned by local government. The funds planned by the forest agencies for supporting the ecological development should be brought into the budget of the relevant projects.  

--- Finance and Taxation Policies: in recent years, the Chinese government has begun to allow more loans for forest sector. Trial forest insurance has also been launched and the insurance premium will be subsidized by the state. Forest ownership could be mortgaged for a loan from banks and the government will offer interest subsidy to the relevant forestry loans. Tax preferences are also announced to forestry incomes, for example, taxes on special agricultural products were cancelled. In addition, forest tending operation fund has been reduced. Company earnings from forest business are entitled to reduction of and exemption from enterprise income tax. As for the products which are produced with the remainders and scraps of forests and crops, the government implements levy-and-refunds policy towards VAT.

--- Forest management policies. Foresting management policies have been established and improved. Quota category management has been adopted for tree cutting. The forest managers are given more right to dispose of the trees that he manages. As to the collective-owned forests, forest property circulation system has been made in place so that the foresters can sign contract over to or from other people. The government has established and improved the social service system of forestry to support the development of farmers’ forestry professional cooperatives, family-cooperative forest farms, joint-equity forest farms and other forestry cooperative organizations.       

Forestry Reform        

Chinese government is committed to forestry management reform in order to create more opportunities and motives. As to the collective-owned forests: the government helps the farmers have land usufruct and tree ownership through forest land contract. As to the key state-owned forestry farms and forest companies: the government is committed to reforming forestry management system, company ownership system, enterprises’ cumbrance under their social obligations, redundant workers re-employment. As to the common state-owned forestry farm, the government is committed to classification reform, fixing working posts, defining personnel quota, activating mechanism, increasing efficiency and reducing burden and securing the people’s livelihood. Since 2005, Chinese government has launched collective-owned forest right reform based on the previous practices attained from the provinces of Jiangxi, Liaoning, Zhejiang and other places. In June 2008, the Chinese Communist Party Central Committee (CCPCC) and the State Council promulgated Regulations on Collective-owned forest Right Reform. In June 2009, the first forestry conference was held by the central government since the foundation of the People’s Republic of China. At that conference a detailed plan on the reform of collective-owned forest right system was fully deployed. Nowadays, there are 130 million hectares of forest area with confirmed property rights and 90.8 million hectares of forest area with certificates of property rights, accounting for 71.3% and 53.7% of the total area of the collective forest land respectively.  

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