As one of the important ecosystem services of wetlands, carbon sequestration of lakes and swamps in China were investigated in this paper. Based on the reported bulk density and total organic carbon content, we estimated the carbon sequestration rate of major lakes and swamps regions in China. The carbon sequestration capacity of lakes of the whole country was 1981.87GgC•a-1. Lakes in East China exhibited the highest carbon sequestration rate and the greatest carbon sequestration capacity. Swamps demonstrated a total higher carbon sequestration of 4.91TgC, 147 times greater than that of lakes in China. Among the five varieties of swamps, mangrove had the highest carbon sequestration rate of 44427 gC•m-2 •a-1, while the inland marsh was of the greatest carbon sequestration capacity, the amount was 150112 GgC a-1. Wetlands reclamation led to huge amount of carbon emission, and the carbon loss due to reclamation of lakes and swamps were 0.82 and 26.9Tg, respectively. After the great flood in 1998, wetlands recovery policies such as returning farms to lakes and swamps were implemented. The carbon sequestration potential of wetlands recovery was 3048GgC•a-1, including 3026GgC•a-1 from returning farms to lakes and 0.22GgC•a-1 from returning farms to swamps. Under the ongoing National Wetland Conservation Action Plan, the carbon sequestration potential of wetland restoration was estimated at 6.57GgC•a-1. Accordingly, wetland protection and restoration can improve the carbon sequestration potential of wetlands.