BIODIVERSITY WORKING GROUP
(PHASE TWO)
THIRD REPORT (1999)

September 1999 Beijing

• The population dynamics of wildlife besides rare and endangered species which have been involved in the trade should be monitored to avoid over-exploitation of wildlife resources.
  
• It is urgent for governments of China and neighbouring countries to co-operate in the control of cross-border wildlife trade.
  
• Enforcement of wildlife protection should be strengthened in Yunnan ports.
  
• Training of customs officers and port managers is necessary, particularly in basic knowledge of zoology, taxonomy, and ecology, as well as the wildlife protection laws.
• Releasing exotic wildlife to Yunnan native habitats must be prohibited.
• Public awareness concerning wildlife conservation needs to be improved.

The trade studies in Yunnan augment the findings of earlier studies by BWG in Guangxi, Macao, Hong Kong, Guangdong and Shenzhen and the BWG field visits to markets in Hainan and Guangdong. The findings confirm that the scale of the problem is very great and that wildlife trade networks are complex, dynamic and reaching ever further beyond China’s borders. Studies of trade routes in neighbouring countries undertaken by TRAFFIC and WWF also confirm these findings and the alarm that is felt by China’s neighbours over the scale of this trade.

The fact that China must import wildlife from ever greater distances is evidence that the trade is unsustainable. The fact that protected species continue to cross the border points but do not emerge in the public markets indicates that there is a separate underground trade in protected wildlife.

Two issues are involved: firstly, the fate of the many wildlife species involved in this trade and secondly, the image and reputation of China as an environmentally responsible member of the global community. The second matter will have a much greater impact on China’s development and international trade. It is important that the authorities get on top of this problem. BWG welcomes the idea of the Guangdong authorities to limit wildlife trade to only a small number of the many transborder trade gates, and hope that this can be extended also to the borders of Guangxi and Yunnan. BWG would also recommend a temporary moratorium of all transfrontier wildlife imports into the three provinces to allow stock-taking in the source countries whilst China puts in place the controls necessary to regulate such trade.

5. Five Year Work Plan of BWG

The proposed work plan remains unchanged, but completion of the activities listed will be dependent upon finding some way to continue funding the operation of the working group.

One priority new activity was proposed in our 1998 report. In view of the disastrous floods that affected China during 1998, we proposed to pull together the findings of previous work and experience on such flooding with international examples and prepare a special report for the Council entitled "The Use of Natural Vegetation in the Control of Floods".

China has again experienced a summer of disastrous floods, although the rainfall has not been outside normal patterns. The cause of the floods seems to be both that the vegetation sponge which holds back rainwater, improves soil penetration and uses water for transpiration has been reduced to critical levels, and that at the same time the siltation of lakes and riverbeds (also due largely to deforestation) has blocked the drainage system, preventing the swift dispersal of flood waters. The BWG is convinced that better protection of remaining original forests and better design of newly planted forests can have a major effect in reducing the damage from floods and in improving the flow of water in seasons of reduced rainfall. BWG have not had the funding needed to undertake the planned studies, literature surveys and experiments needed to make the planned report for the Council, but feel this is an urgent task and hope to undertake this project as soon as funding is secured.

Work Plan for 1999-2000

The following activities are therefore proposed for the coming year.

• Special Report - Concerning the 1998/99 floods – follow-up study and recommended actions
• Start preparation of demonstration province-level Biodiversity Strategy and Action Plan
• Continue development of the CSIS database
• Red List and Application of New Criteria to Chinese Animals / Species Survival Action Plan
• Wildlife survey and monitoring
• Assessment of invasive species and their impact on biodiversity conservation
• Mammal and Bird Guides
• High Alpine Grassland Studies
• Demonstration project in Sustainable Utilisation

6. Publications of BWG

• Preliminary survey on wildlife trans-frontier trade in Yunnan (in Chinese and English)-----
  ---------------------------------------------璚ang Zhijun, Wu Delin and Chen Huojie
  
• The status on live wildlife trade near the port areas in Yunnan (in Chinese and English)------
  ---------------------------------------------Wang Zhijun, Chen Huojie and Wu Delin
  
• Review on wildlife utilization and trade in China (in Chinese)--------------------Xie Yan
  
• The plateau pika (Ochotona curzoniae) is a keystone species for biodiversity on the Tibetan plateau(Animal Conservation 2, 1999)------Smith, Andrew T. and J. Marc Foggin
  
• IUCN Chinese Newletter (issue 5-9) (in Chinese)--------------------Wang Sung et al(ed.)
  
• IUCN Guidelines for Re-introductions (in Chinese and English)------Xie Yan (translated)
  
• The dynamics of trade in live wildlife across the Guangxi border between China and Vietnam during 1993-1996 and its control strategies (Biodiversity and Conservation 7, 895-914, 1998)---------------------------------------------Li Yiming and Li Dianmo

7. Funding of BWG Activities

The above-mentioned activities have received assistance from CCICED, MOF, NEPA and SOA, and also financial assistance from CIDA, WWF and IUCN/World Bank. As shadow ministers of BWG, Council members of CCICED, Claude Martin, and Maritta R. von Bieberstein Koch Wesser, have provided assistance to the work of BWG. We sincerely appreciate the assistance of these sources of support.

Proposals have been prepared and submitted to a variety of agencies including GEF, British Government, Italian Government and Norwegian Government to cover the basic operations and project work of the working group. Preliminary responses are optimistic.

8. Major Recommendations of BWG

A summary of specific recommendations for biodiversity conservation in Guangdong are given in the summary activities in section 4 above. A fuller draft of these recommendations, as presented to the provincial authorities is appended to this report as Annex 1.

The working group was asked to submit its major recommendations to CCICED for consideration for inclusion in the 10th Five Year Plan of China. The final draft of these recommendations is appended to this report in Annex 2.

In addition, BWG wish to repeat their first recommendations of last year, since the matter remains very urgent and the recommendations remains precisely relevant.

Recommendation 1:

Flood control can be achieved by taking better protection of natural vegetation in critical regions of China, particularly the catchments of the Yellow River and Yangtze River. Measures should include: Banning the logging of remaining natural forests, reducing pressure on existing forests by subsidising electricity and alternative fuel costs to local households; redirecting moneys from the beneficiaries of good water control to the individuals and agencies living and working in critical catchments responsible for ensuring good vegetation cover; reduce overgrazing on critical grassland areas; continue reforestation projects but with specific design for good "water sponge" rather than timber production (i.e. broadleaf or mixed forests rather than monocultures and too many conifers).

Recommendation 2:

It is important that China retains a good image internationally as a country of high environmental responsibility. Chinese citizens, companies and government agencies working overseas are endangering this image by embarking on environmentally damaging projects. We recommend that the government ensures that Chinese agencies embarking on potentially damaging projects have to undertake the same level of EIA for such projects as they would in China, even if the laws of the country concerned are weaker. The large-scale clearing of tropical rainforests to make way for a pulp mill in Sabah, Malaysia is a potentially embarrassing case in point.
Annex 1:

CCICED Biodiversity Working Group
17-22 August 1999

Workshop on Biodiversity Conservation in Guangdong Province
RECOMMENDATIONS

The Biodiversity Working Group of the CCICED held a Workshop on Biodiversity Conservation in Guangdong Province from 17-22 August 1999. Guangdong Province has a high proportion of China's biodiversity as well as a large human population. In addition, Guangdong has experienced explosive economic growth and development during the last few decades.

As part of the workshop, groups were privileged to visit several nature reserves (Dinghushan Man & Biosphere Reserve, Nankunshan Nature Reserve and Neilingding-Futien National Nature Reserve) as well as the Xinyan Wildlife Market, Huadu Yingjili Peacock Farm, Nanhai Bird Farm, Wutongshan Nursery, Xiangjiang Wildlife Park and Shenzhen Wildlife Park. The people from these facilities were extremely gracious hosts and patiently answered all questions.

The BWG were impressed by the great work that has been done by the provincial authorities in the field of biodiversity conservation and the ambitious plans for further strengthening the protected area system and measures to control the trade and use of wildlife.

The BWG team is concerned by the high levels of utilisation and question its sustainability, and noticed some areas in protected areas management that could be improved. In addition the BWG were alarmed at reports that some species of carnivore and raptors may be extinct over wide areas of the province.

This report contains our recommendations, arising from discussions held during the survey visits as well as discussions held during the plenary sessions of the workshop. The recommendations do not report on all the factual information collected during the field investigations, except where such facts are necessary to support recommendations made.

1. Trade in Wildlife

On the face of it, the trade in wildlife through the Xinyan Wildlife Market must be unsustainable. The estimated 200 individual shops each had several hundred to several thousand snakes of various species, totalling several hundred thousand individual snakes. This trade may represent a significant ecological impact on the surrounding countryside, and on the countries of Southeast Asia that are contributing to this trade. What, for example, is the impact on rodent prey populations? Without the snakes do the rodent populations increase and heavily impact rice and other economically important food crop harvests? The answer is that we simply do not know the ecological impacts of this trade, nor indeed whether the trade is sustainable.

Many of the wildlife species traded in Guangdong are threatened, but not protected by existing laws or conventions. On the other hand, some of the species listed in wildlife protection laws are common and widespread. In addition, the high levels of observed trade of non-listed species could jeopardise those species so rapidly that corrective conservation actions may not be able to keep pace with the declines. Further, trade in species that are not native to China also needs to be regulated here, because China is a significant importer of wildlife and it has a responsibility to ensure that its levels of consumption are not breaking regulations elsewhere, or having negative impacts on wild populations. It is disturbing that the trade appears to be increasing; for example, a new block of 60 or so shops has just been completed. These facts highlight the danger of over-exploitation.

Trade in other taxa that were seen, including turtles, lizards, mammals and birds, was difficult to assess as there are also other markets in the city specialising in these taxa. However, the conditions under which even the relatively limited numbers of these taxa were kept were unsatisfactory, with overheating an obvious problem, few animals having access to water, and untreated wounds common.

We therefore recommend that:

a) a comprehensive study of the volume and ecological impact of the trade be initiated as soon as possible, in collaboration with an appropriate local university and experts on fauna and flora, the various provincial authorities, the traditional medicine community, the wildlife traders, customs officers, and TRAFFIC (to build in the international component); this study of trade should include investigation of the import pathways for non-native species, as a basis for appropriate regulation and enforcement of trade agreements;
b) regular monitoring of trade be instituted to ensure that trade is carried out in a sustainable manner;
c) a professional Wildlife Traders Association be established that could agree and enforce standards of operation (and perhaps achieve economies of scale in negotiations with importers);
d) a simple guide to legal and illegal species be prepared for the wildlife traders, in Chinese, so that they will know which species are protected under which legislation;
e) an educational programme be designed on the basis of the results of the study under point a), aimed - over the long-term - at reducing public demand for wildlife;
f) protected species legislation be revised using the most up-to-date information available in consultation with relevant experts; and,
g) a ban on hunting or trade in species being unsustainably harvested be instituted and remain in force until such time as the trade or hunting is no longer a threat to the species' survival.

2. Involving the Private Sector in Biodiversity Activities

The phenomenal success in breeding peacocks (30,000 individuals, 2000 birds per month to the market), emus (10,000 produced per year from a single facility), canaries, and others indicate that the technology is available to breed virtually unlimited numbers of at least certain species in captivity, and that this technology is held primarily by the private sector. The private sector has a valuable relationship with the South China Agricultural University for conducting research on bird diseases, and they offer a range of other services to the Provincial Forest Department (breeding Green Peafowl -- a protected species -- and holding confiscated bears). In the new economic conditions, the private sector is going to become increasingly important as a contributor to biodiversity objectives. In the long term, the imbalance between supply and demand will be regulated by the market, but in the short term, government support may be required to enable the private sector to contribute to biodiversity objectives.

We therefore recommend that:
a) the private sector and government work together to determine the most supportive policy framework for current conditions. This framework should include clarified registration and permit procedures, certification procedures for captive bred/propagated individuals, developing international markets, and clear positions at CITES negotiations; and,
b) the private sector be systematic in recording and sharing the methodology for captive breeding and cultivation, in co-operation with government captive breeding efforts for species that are unlikely to show an economic return but which are critical for biodiversity conservation.

3. Wildlife Parks/Safari Parks

The growing popularity of Wildlife Parks and Safari Parks, usually as private commercial enterprises, demonstrates the great interest of the Chinese people in wildlife. Far more could be done, however, to ensure that they also learn about China's native biodiversity, how people relate to wildlife, what needs to be done to ensure that levels of exploitation are sustainable, and so forth. In addition, these parks should follow the example of their counterparts in Southeast Asia, Europe and North America in contributing to international ex situ and in situ conservation efforts.

We therefore recommend that:
a) wildlife parks/safari parks in Guangdong be active participants in the Chinese Association of Zoological Gardens including maintaining accurate records/studbooks and encouraging exchanges of information both within China and internationally, and agreeing to standards for management;
b) each Wildlife/Safari Park should develop a comprehensive educational plan, perhaps drawing on the experience of relevant non-governmental organisations and government agencies and highlighting in particular native Chinese wildlife; and,
c) wildlife parks/safari parks should consider exhibiting native fauna and flora on an 'ecoregion' theme to make such facilities into biodiversity parks.

4. Nature Reserves

The nature reserves visited provided some excellent examples of good reserve management. In the course of the meetings, with our colleagues at these facilities, we learned of the successful results of halting fishing in some coastal areas to increase fish stocks, plans to create 'ecological forests' and the activity to increase the network of reserves in the province, and plans to complete a provincial biodiversity inventory. In addition, our colleagues shared with us some of the difficulties they currently experience in reserve management, including the difficulty for the staff to be put into the position of having to generate their own funds for reserve operation. Staff from some reserves (eg. Nankunshan) desire to increase funding by generating hydroelectric power or engaging in ecotourism. Significant modifications in the management of these parks must be undertaken before either of these options should be entertained.

For the provincial nature reserve network we recommend that:

a) the central government invest a higher percentage of funds in support of these forest areas and the staff entrusted with their management, and consider increasing the percentage of incoming generated through entry fees in order to fund an increase in public education and research activities in reserves;
b) the reserves should establish regular monitoring schedules for the biodiversity in the reserve;
c) reserves should develop ecotourism materials including species lists and educational materials, that are developed from an ongoing inventory of biotic resources;
d) development of hydroelectric power within reserves should proceed with caution if at all. We encourage only micro-hydroelectric power to support the ecotourism infrastructure, and not large-scale building of dams, etc.; and,
e) As a matter of general policy, any large-scale potentially disruptive project in China's nature reserves should be evaluated by an independent environmental impact assessment (conducted by SEPA) to determine the costs and benefits of the project compared with potential loss of native biodiversity.

Additional recommendations for nature reserves are included in Annex 1.1. In addition, some specific information and recommendations for the individual reserves visited are mentioned below:

Dinghushan Biosphere Reserve

This NR provided an excellent example of a well-run nature reserve. We are particularly impressed by effort being made in public education, such as tags on trees indicating the importance of those trees, and the medicines and other human resources obtained from them. The reserve deserves praise for developing lists of species occurring in the reserve and publishing articles based on research carried out in the reserve. The present zoning of the reserve (core area, buffer zone and experimental zone) seems to be well drawn. The temple area in the buffer zone is heavily visited, but it is well maintained and attractive to visitors. The presence of shops and vendors (gifts, food, etc.) provides visitors with many opportunities to enjoy their visit to that area.

For Dinghushan Man & Biosphere Reserve we recommend that:

a) it would be worthwhile to expand educational efforts to reach both eco-tourists and cultural tourists. The Kadoorie Farm and Botanic Garden (Hong Kong) is experienced in producing various educational materials and could be helpful to the nature reserve in expanding this very important aspect of their public programs;
b) researchers on the staff should be encouraged to expend greater effort in developing more complete species list for animals and plants in the reserve. The existing lists, while a good beginning, are incomplete. The BWG should be able to provide lists of species of birds, mammals, etc. likely to be found in the reserve;
c) the present mounted specimens of birds and mammals at the reserve headquarters are mislabelled or unlabeled and in such poor condition that they ought to be replaced as a public display by good quality photographs;
d) the attraction of the natural portion of the buffer zone could be increased by establishing several "nature-walks" that could be located along existing pathways and could provide visitors educational opportunities of how the forest functions and what roles its component species play in the life of the forest;
e) these trails should also be kept as free of trash as possible; and,
f) providing some shops catering to eco-tourists might increase the number of visitors to that area of the buffer zone.

Nankunshan Nature Reserve
The forest in the general vicinity of Nankunshan Nature Reserve (NNR) is expansive and apparently healthy. Few signs were seen of any logging or man-caused disturbances. We viewed this area as one of high national importance - a real natural asset (especially considering its proximity to such a large urban area as Guangzhou). The actual area of NNR is considerably smaller than the total forest, but we were provided no maps to judge accurately the extent and location of the reserve. It was also unclear who has the ultimate responsibility for different aspects of management of NR and the surrounding forest - for planning, implementation of plans, funding, etc. This confusion was not only apparent to us, but also to those nominally responsible for administration of management of this forest. The NNR has much promise for biodiversity conservation - but we did not witness any concerted evidence that biodiversity conservation is being addressed directly in elements of park management. There are only three full time staff and none are involved in research. The relatively pristine state of the park at present is due more to a lack of funding than active management to protect the area.

For Nankunshan Nature Reserve we recommend that:
a) an understanding concerning the division of responsibilities for managing the reserve be clarified;
b) the reserve be expanded to encompass the forests of Nankunshan range. Such enlargement would not only result in greatly enhanced protection of the biota in these mountains, but would better protect the water resources of several rivers whose headwaters are in these mountains. The great importance of water in this densely inhabited part of Guangdong is obvious; and,
c) means should be found to begin an inventory of the biota of the Nankunshan. Since the staff of the reserve itself are inadequate to conduct such inventories, consideration should be given to identifying suitable specialists from elsewhere in the Province or region who might be able to assist the reserve staff.

Neilingding-Futien National Nature Reserve
This site is clearly important at a national level, being an extension of the Mai Po Reserve in Hong Kong. The reserve is well situated to be a National Nature Reserve because a major new highway offers an excellent boundary. The reserve also has considerable potential as an educational site, being the mangrove forest closest to Guangzhou and Hong Kong. In order to make it more valuable for education, greater investment will be required for management, including dealing with the difficult problem of tide-born trash. The on-going research on mangrove restoration is excellent, and should be continued and applied in other parts of the Pearl River estuary. The success of the reserve depends ultimately on solving the problem of land tenure with the local people currently occupying the Reserve area.

For Neilingdingfutien NNR, we therefore recommend that:
a) the government reach agreement with the local people regarding long-term tenure/ rights to sustainably exploit the resources of the site;
b) the Reserve seek recognition under the Convention on Wetlands of International Importance (Ramsar Convention), perhaps as an extension to Mai Po (which is already listed);
c) a belt of trees and shrubs be planted along the highway to buffer the site from the impacts of vehicle and pedestrian traffic;
d) the reserve capitalise on its potential as an educational site for the general public and include in its buffer zone functioning fish ponds that would not only maintain an important part of the culture of the local peoples, but could provide a practical example of sustainable use of resources; and,
e) avoid the introduction of exotic species in any restoration work on mangrove forests .

5. Benefits from Biodiversity for all Stakeholders

The involvement of the private sector and government in the sustainable use of biodiversity was obvious during our visits. However, it was unclear that people at the source of biodiversity, either local villagers or local governments, were receiving a fair share of the benefits from use of their biodiversity resources. Breeding limited numbers of endemic orchids or pheasants, for example, could earn a significant benefit for these people and help them to recognise that conservation and sustainable use have direct value to them. The quantities and species they deal with would be unlikely to compete with the commercial private sector or state enterprises.

We therefore recommend that:
a) transfer of technology and sharing of benefits derived from captive breeding/propagation of wildlife resources be implemented at all levels, in particular to local people in remote areas, as a means of helping them to earn some economic benefits from sustainable use of biodiversity; and,
b) trading companies should invest in small ventures run by villagers at the source of biodiversity, especially species that have specialised habitat or nutritional requirements that are not easily created in captivity.

6. A Comprehensive Provincial Approach to Biodiversity

As part of her commitment to the Convention on Biological Diversity (CBD), China has completed a National Biodiversity Action Plan. However, China is one of the megadiversity countries of the world and it is important to follow this national level Action Plan with a national strategy that would specify national policy on biodiversity. This should be implemented through planning at the provincial level to account for conditions specific to Guangdong, to define the roles for the various economic sectors, and to outline the major activities needed to implement the CBD at the provincial level. As a starting point, at the end of 1999, the Forest Department of Guangdong Province will have completed a provincial biodiversity survey.

We therefore recommend that:
a) the Province of Guangdong should prepare a Provincial Biodiversity Strategy and Action Plan, led by the State Planning Commission and with the active participation of the Provincial Forestry Department, the Provincial Environmental Protection Agency, provincial agricultural, fisheries, marine, tourism, science and technology, transport, energy, trade, education agencies, and the private sector. The strategy and action plan should address county and township issues as well. The Strategy and Action Plan would set out the major policy directions for the province, to ensure that any use of biological resources is sustainable, and that biodiversity is able to continue to play its critical role in the welfare of the people of Guangdong; and,
b) a means for providing adequate resources for implementation should be included in the Guangdong Biodiversity Strategy and Action Plan, drawing on a wide range of funding mechanisms (ranging from admission fees to special taxes to linkages to water resources).

7. Guangdong's Responsibility for Hainan:

Guangdong province retains a historical responsibility for biodiversity in Hainan province. Hainan lacks a university or any biological institutes to undertake its important biodiversity conservation programme.

We therefore recommend that:
Scientists from Guangdong should support the Hainan authorities, through helping train Hainan biologists and field managers and providing vital data and reference collections to Hainan. This is particularly important for marine areas as Hainan is quite unequipped to control the huge area of rich tropical seas, whose management is confused by overlapping international claims.

8. Need for higher levels of provincial investments in biodiversity:

Biodiversity is providing massive and valuable services to the province in the form of water catchment functions - providing a year-round supply of clean water, reducing flood impact, protecting soils, refreshing the atmosphere and nutrient cycling. The soil itself derives from natural ecosystems and their component organisms. These services create large economic gains to many sectors, including agriculture, hydropower, industry, and fisheries.

We therefore recommend that:
The benefits of investments in biodiversity are realised by the provincial authorities and that these economic gains are reinvested into vital protection operations so as to secure sustainability of these services and as a long-term insurance against natural disasters. Successful demonstration of the soundness of such investment would help lead the way for national biodiversity care.

Annex 1.1. Additional recommendations on protected areas

Annex 2:

RECOMMENDATIONS TO THE TENTH FIVE-YEAR PLAN

FROM THE CCICED BIODIVERSITY WORKING GROUP

RECOMMENDATION 1: ESTABLISH A CROSS-SECTORAL COORDINATING BODY FOR BIODIVERSITY AT THE NATIONAL LEVEL

Objective: To establish a scientific authority for nation-wide biodiversity conservation and/or to empower existing conservation institutions with new and clear responsibilities and authority.

Background:

• China is one of the richest countries in terms of its biodiversity, yet is also one whose biodiversity is under great threat.
• China has ratified the Convention on Biological Diversity (CBD). The Chinese government attaches great importance to the conservation of its biodiversity and has carried out a series of far-reaching conservation policies and measures, including a concerted effort to address the objectives of the CBD.
• Biodiversity conservation involves all sectors, which means there may be conflicts between different sectors over conservation initiatives.
• The existing national Biodiversity Action Plan requires a nation-wide coordination institution to ensure its effective implementation.
• Factors dealing with tradition and improper division of capacity within institutions have led to the failure of relevant sectors to cooperate with each other over conservation initiatives, a situation which needs to be improved.
• In addition to the CBD, many other international conventions relate to the conservation of natural resources and ecosystems, covering endangered animal and plant trade, wetland conservation, migratory species, whaling, desertification, world heritage, migratory species, climate, marine life, etc. Their implementation involves different sectors.

Measures Proposed:

• Establish a Coordinating Body for Biodiversity Conservation at the national level that would be in charge of the coordination of biodiversity resources and ecosystem conservation agencies, as well as be the implementation agency for the CBD. This Coordinating Body should have legal, political and financial authority over nation-wide biodiversity activities. The Coordinating Body should be responsible for guiding and encouraging biodiversity conservation in China through policy-making and planning. Building on China's Biodiversity Action Plan, the Coordinating body should oversee the preparation of China's Biodiversity Strategy, which would establish the main policy directions for china's implementation of the CBD.
• Link the work of the CCICED/BWG to this Coordinating Body

RECOMMENDATION 2: ENABLE BIODIVERSITY TO EARN ECONOMIC RETURNS

Objective: The economics of biodiversity well understood by decision-makers and policies put in place to return profits from biodiversity investments to better manage biodiversity.

Background:

• The goods and services provided by biodiversity are worth hundreds of billions of yuan to the Chinese economy each year. One global estimate is that nature's services are worth US$33 trillion per year, of which China's share could be as much as $6 trillion per year. These benefits include direct provision of food, medicine, timber, and other products as well as watershed protection, nutrient cycling, carbon sequestration, and the numerous other processes of life upon which the productivity of the Chinese economy is based. Thus conserving these biodiversity goods and services is of interest to all CCICED working groups.
• Despite the role of biodiversity in improving air quality, conserving water, reducing the incidence and impact of floods, providing food, enhancing the longevity of dams (thereby contributing to energy supplies), and increasing agricultural yields, insufficient investments are being made to enable biodiversity to continue providing these benefits. Instead, many sectors of the economy -- both public and private -- are gaining substantial economic benefits without paying a fair price for them..
• CCICED studies have demonstrated that even areas managed primarily for biodiversity conservation can be highly profitable, with the proper policy support. Wolong Panda Reserve in Sichuan, for example, would generate revenues of between $1.68 - $2.17 million per year if the admission fee were raised from $7 to $25 (an increase tourists would be willing to pay). This compares very favourably with the current operation costs of $250,000 per year, but far greater earnings are possible with greater investments in improving the management of the reserve.
• Substantial investments are required to enable biodiversity to be well managed for the benefit of China's economy. Experience elsewhere has demonstrated that these investments will earn very high rates of return, in both the short term and the long term. However, many of these benefits are in the form of "public goods" -- distributed freely to all citizens -- rather than "private goods" that provide immediate financial returns.

Measures Proposed:

• Establish a research programme to better understand the economics of biodiversity, including its economic benefits and how various economic instruments can be used to both capture the benefits of biodiversity and return profits to improving biodiversity management. As an example, some crops may be extremely wasteful of water and/or land in providing a certain amount of human nutrition. Since these crops are effectively being subsidised by natural ecosystems they should be subjected to an 'ecological taxation', to return profits to the source.
• On the basis of the research, develop policies that will enable significantly increased funds to be returned to biodiversity management. For example, a "Panda Stamp" on tourist visas could earn many tens of millions of dollars per year, if the funds were used for biodiversity management; and many protected areas could at least cover their operating costs if they were enabled to retain the admission fees paid to them and if they were compensated for the watershed protection values they provide. Policies should also need to be developed to charge private users for the biodiversity benefits they are provided by nature (for example, water fees, green taxes, royalties, resource user fees).
• Establish, on the basis of the research programme, a special fund in the State budget to invest in biodiversity activities. This Biodiversity Fund is required to make the necessary investments in infrastructure, research, and administration that will provide returns to the general public over the longer term.
• Establish a revolving Forest Ecosystem Management Fund that will manage forest royalties for reinvestment in improved forest management.

RECOMMENDATION 3: REVISED LAWS AND IMPROVED ENFORCEMENT IN THE AREA OF BIODIVERSITY SHOULD BE PROMOTED

Objective: An adequate legal and logistic basis established for biodiversity conservation, environmental security, control of illegal trade, and gene bank development.

Background:

• The legal basis and the enforcement of laws and actions must go hand in hand.
• Although China has many laws relating to biodiversity and its conservation and sustainable use, such as the Environmental Protection Law, Wildlife Protection Law, Agriculture Law, etc, these still do not meet the overall needs according to the obligations under the CBD.
• The Wildlife Protection Law needs to be revised and updated. Currently it mainly deals with state endangered wildlife and wildlife with high economic value, It must be supplemented with measures to meet the need to conserve and sustainably use all biodiversity in China.
• The potential risks resulting from the utilisation of new bio-techniques on existing biodiversity and human health must be addressed and controlled legally. The threat imposed by alien species must be stopped, and such invasive species should be controlled and managed, both legally and practically.

Measures Proposed:

• Develop comprehensive Biodiversity Law that includes the obligations under the CBD and other relevant conventions to support long-term conservation of biodiversity and its sustainable development in China.
• As the first step, relevant authorities and institutions should, assess the need for feasibility of the development of such a new consolidated Biodiversity Law.
• Taking into consideration different levels of necessity and feasibility, separate Endangered Species and Biodiversity Security Acts should also be considered.

RECOMMENDATION 4: UNDERTAKE A NEW BIODIVERSITY INVENTORY OF CHINA

Objective: Strengthen research on taxonomy and biodiversity information systems. Establish baseline biodiversity data for future monitoring programmes and revitalise and coordinate links between biodiversity museums and collections

Background:

• Most protected areas, remaining forest blocks, new plantations, marine areas and rural habitats lack any form of biodiversity inventory. Sites for which data do exist have in most cases been greatly transformed since the original inventories were undertaken. Much existing data are out of date or taxonomically imprecise.
• Taxonomy is one of the keystones in the study of biology. China, being a megadiversity country, still has many species unnamed and geographic areas to be further explored. However, the field of taxonomy is now very weak. Experienced biologists, taxonomists, and field biologists are in very short supply.
• Current trends in the development of biology have tended to ignore field biology and taxonomy, even though these are key factors in biology; desk work is replacing field study.
• Conservation and sustainable development of biological resources, environmental change, study of invasive species, environmental restoration, and biodiversity evaluation and monitoring all require increased levels of field study.
• At present, museum specimens are not being collected or maintained properly. Museum specialists are few. Many type specimens have been scattered at different institutions. Without concerted effort to preserve these specimens, they might be lost.
• Existing information on taxonomy, distribution, and habitat has not been fully utilised. A national information system could help identify areas needing increased protective measures. Much data are already very out of date.
• Species and ecosystems rely on each other. Key species, functional groups and guilds play important roles in ecosystems. Examples are documented keystone species on the Tibetan plateau and their overall influence on that ecosystem. Recognition of keystone species, functional groups and guilds is very important for the protection and restoration of all species.
• Unlike western universities, Chinese science universities do not have special taxonomy and field biology curricula. The shortage of taxonomy specialists is a big problem facing Chinese biodiversity studies, and this need should be attracting the attention of the public.

Measures Proposed:

• Undertake new national biodiversity inventory across all provinces. This will necessitate the preparation of new identification guides and keys, training of field collectors and taxonomists at provincial level and a revitalisation of museum activity and standards. The programme should be coordinated by CAS and may necessitate the establishment of a specialised Biodiversity Institute. Data collection will involve use of habitat base maps prepared from satellite images and use of GPS equipment to ensure high geographical accuracy. Data will be channeled into a national Biodiversity Database using latest GIS technology.
• A State Natural History Museum should be established, operated by museum science specialists and housing specimens and associated equipment. The collection of specimens will show the evolutionary process at the regional level, which is the foundation for protection and restoration. The State Natural History Museum will convey the process of evolution and natural resource management to the general public. Special care should be taken to preserve type specimens, and protection and management of collections should be strengthened. The many scattered collections are useful for local scientific work and reference, but should be electronically catalogued into the State Natural History Museum. Important collections meeting national standards of specimen care and preservation should be registered as part of the national collection and receive grants to help with their maintenance.
• Address taxonomic problems of key difficult species groups by production of clear, up-to-date identification guides and keys.
• Offer incentives to encourage taxonomic study. Field data collection and specialist training should be strengthened. Information systems should be established according to the dimensions, complexity and practice needed. Information exchange should be strengthened using the Internet to form a nationwide information system, which could be a way to promote public education.
• Conduct research on relationships among key species, functional groups and guilds, as this will provide a scientific basis for the management and restoration of biodiversity and natural ecosystems.

RECOMMENDATION 5: INCREASE PUBLIC EDUCATION ON THE IMPORTANCE OF BIODIVERSITY CONSERVATION

Objective: Through public education on biodiversity, enhance the awareness of the general public to improve biodiversity conservation

Background:

• Party leaders, government officials, and enterprise managers lack the awareness of biodiversity conservation and relevant biological knowledge.
• There are still people who prefer to eat wildlife indiscriminately, take traditional Chinese medicines containing products of threatened species, and treat animals inhumanely.
• Although considerable effort has been invested in biodiversity conservation education, there is still a large gap between the current state of conservation education and what is needed. In particular, biodiversity conservation education training materials are inadequate.
• NGOs, through their conservation education programmes, have the capacity to mobilise youth and the general public to assist the government in biodiversity conservation.

Measures Proposed:

• Incorporate biodiversity conservation into formal education. Add relevant knowledge in textbooks of primary and secondary schools. Set educational goals by all levels of government agencies and provide financial assistance to ensure these goals are realised.
• Publicise the importance of biodiversity conservation through radio, TV and newspapers.
• Encourage national and international NGOs to carry out conservation education activities in China.
• A biodiversity conservation component should be added in the training materials for workshops of all levels of government officials and leaders.
• Fully utilise public institutions, such as natural history museums, zoos, botanic gardens, national parks, reserves, etc., to convey the message of biodiversity conservation.
• Encourage the establishment of pro-nature associations among students and the general public. Organise field activities to generate the people's love for nature.

RECOMMENDATION 6: MANAGE BIOLOGICAL RESOURCES TO ENSURE THAT USE, TRADE AND CONSUMPTION IS SUSTAINABLE

Objective: To stop unsustainable use of biodiversity

Background:

• Analysis has shown that nearly 70% of Chinese mammals are of threatened status. The primary reasons are hunting and habitat destruction. Over-hunting is the primary threat.
• Traditional Chinese medicine and cuisine have a substantial negative effect on biodiversity. Beliefs in food compensation and beautiful cuisine both harm local biodiversity, and support illegal trade that threatens biodiversity in other areas of China and in nearby countries. Statistics show that in 1995 94.1% of the restaurants in Guangxi Province provided wildlife as food, of which a great percentage was threatened species illegally caught and traded.
• In recent years, with the development of a consumption economy, demands for wildlife products have increased greatly. This has inflated the price for wildlife products and increased levels of their use. People rush into the wildlife trade, many without licenses. Illegal trade has concomitantly increased, greatly threatening the survival of many endangered species and greatly decreasing populations of non-listed species.
• Of the 426 medicinal plants in the Chinese Encyclopaedia of Medicine published in 1995, 28 are listed in the Chinese Red List of Endangered Plants (accounting for 6.57%). Therefore, there is a connection between endangered plants and Traditional Chinese Medicine (TCM). And, as with other species found in trade, indiscriminate use of species for TCM may jeopardise populations of non-listed species.

Measures Proposed:

• Establish comprehensive management system that strictly prevents the use of illegal destructive hunting measures, such as illegal weapons, poison, explosives, etc., and all trade in key endangered species. Set proper hunting quotas for common species to ensure sustainable harvest and trade.
• Strengthen customs regulations, and train customs staff in intervention of illegal wildlife trade. Restrict the number of ports to increase efficiency of customs measures directed at illegally transported wildlife.
• Develop captive breeding of a substantial number of TCM species and other economic wildlife to reduce the negative effects on biodiversity in the wild. Strictly manage the trade of captive bred specimens.

RECOMMENDATION 7: EXTEND BIODIVERSITY STRATEGIES AND ACTION PLANS TO THE PROVINCIAL LEVEL

Objective: Implement the Convention on Biological Diversity at the provincial level

Background:

• As part of national implementation of the Convention on Biological Diversity, China has prepared a Biodiversity Country Study and a National Biodiversity Action Plan. However, many of the key actions need to take place at the provincial level, reflecting regional differences in biodiversity and decentralised responsibilities for resource management..
• The CBD provides a comprehensive approach to biodiversity which needs to be reflected in the National Biodiversity Act, and in provincial legislation. Such legislation should incorporate new policy measures for implementing the CBD, including biodiversity conservation, sustainable use of biological resources, and the equitable distribution of benefits arising from such use.
• China's protected area system is extensive and growing quickly, but a more comprehensive approach is needed to ensure that all key habitats are covered, that the protected areas fit within a larger bio-regional land-use plan, and that major management issues are clearly identified. This will often require a provincial-level approach.

Measures Proposed:

• Initiate a programme to prepare biodiversity strategies and action plans at the provincial level. Such plans should be based on broad consultation with all interested economic sectors, including private enterprises. While each province will be free to address the biodiversity issues they consider of highest priority, SEPA should provide common guidelines to guide the effort. The provincial strategies and action plans should reach the county and township levels, and set out the major policy directions and key actions for the province. Each strategy/action plan should include a protected area system plan, linkages to key economic sectors, a funding strategy that draws on a wide range of funding mechanisms and financial instruments, and any necessary changes in legislation.
• Prepare a National Biodiversity Strategy that establishes explicit national policies for implementing the CBD, providing the necessary guidance for extending action to the provincial level. This strategy should be converted into legislation through a National Biodiversity Act.
• Invite the Biodiversity Working Group of CCICED to play the role of advisor to the provincial biodiversity planning process, providing technical and policy advice on request.