China, on the one hand, has 100 million hectares of unused land suitable for forestation and a surplus labor force of about 100 millon people in the rural areas. On the other hand, she lacks extremely forestry resources: her forestland and forest stock per capital account for only 20% and 12% respectively of the world average, even less than the proportion of land resources and water resources. Although the forestland and storage have been enlarged,the cuttable resources have kept reducing--there have been no trees to cut in some areas. In this paper we will inquire into how to attract investment in forestation by means of protection for the property right of forestry and reduction of timber tax, so as to both protect environment and develop rural economy.
