Compared to most countries, China has extensive land and water resources because it covers such a vast area. However, much of the country is unproductive. According to government statistics, only 15 percent of the country�s total area is arable, or suitable for cultivation, although unofficial estimates suggest that this percentage is too low. Slope land and other farmland may escape official counting because local farmers may underreport the size of their leased land.

  Farmers must meet government quotas for food grain based on the size of their leased land, so those who underreport their land size would deliver a smaller percentage of their harvest to the government. Such activity is illegal, however, and the extent to which it is practiced is unknown.
  Over centuries China�s large population has placed tremendous pressure on forest resources. The Huabei Pingyuan (North China Plain), for example, once contained large deciduous forests, but most of the plain was cleared for agriculture long ago. Local forests have long served as a source for firewood in rural areas and for lumber and other wood products used in construction and furniture making. More recently, an increased demand for paper has also pressured forestland. The limited amount of forestland in China has serious consequences. Without sufficient forest coverage, soil is more easily saturated by precipitation and runoff from melting snow. The saturation causes accelerated soil erosion and flooding, which in turn increases the amount of sediment that accumulates in deltas and reservoirs. However, China has an aggressive tree planting program, and in recent years the amount of forestland has actually increased.
  China�s water resources are enormous, especially in central, southern, and southeastern China, but the pressure on these resources is also great. Crop irrigation and the demand for water in urban areas reduce the supply. The tapping of groundwater has lowered water tables and led to an invasion of salt in groundwater near coastal areas. In recent years, so much water has been taken from the Huang He (Yellow River) for irrigation that at times the river runs dry near its mouth. Some major dam projects, such as the Three Gorges Dam, may have unforeseen environmental consequences and are controversial within the country.

  Mineral resources. Mineral deposits are distributed widely throughout the country. The principal mining regions are in Northeast China, especially on the Liaodong Peninsula and in the uplands of South China.
  Among metallic mineral ores, iron-ore reserves are estimated to be more than 40 billion metric tons. The largest deposits�mainly in Northeast China, northern Hebei Province, and Inner Mongolia Autonomous Region�are mostly of low quality. Some high-grade deposits of hematite (an important iron ore) occur in Liaoning and Hubei provinces. Extensive deposits have also been discovered on Hainan Island. Large reserves of aluminum ores occur mainly in Liaoning and Shandong provinces. Tin reserves are found primarily in Yunnan Province and Guangxi Zhuang Autonomous Region; China produces a significant portion of the world�s output of refined tin. China holds the world�s largest reserves of antimony, magnesite, and tungsten. Antimony is found mainly in Hunan Province, magnesite in the Liaodong Peninsula, and tungsten in the highlands north of the Xi Jiang (West River).
  China holds abundant reserves of molybdenum, mercury, and manganese. There are also substantial reserves of lead, zinc, and copper. Uranium has been discovered in several areas, principally in Northeast and Northwest China. Other resources occurring in considerable quantities are fluorite, mica, phosphate rock, quartz, salt, silica, and talc.
  China is well endowed with energy resources. Its estimated coal reserves rank among the world�s largest. Most coal is in Northeast China and adjacent areas of North China. Major oil deposits are located in Northeast China; in Hebei, Shandong, Shaanxi, Gansu, and Qinghai provinces; and in Xinjiang Uygur Autonomous Region. Oil-shale deposits are located primarily in Liaoning and Guangdong provinces. China also has substantial proven reserves of natural gas, often found in association with oil.