Forest ecosystems have a significant impact on the atmospheric CO2 cycle. Based on latest three forest resource inverntory and the plan of major forestry projects, the carbon sequestration status and potential of forest vegetation in China were estimated. The China forest carbon storage in the fourth (1989-1994), fifth and sixth (1999-2003) inverntory increased from 4220.45, 4646.94 to 5156.71Tg respectively. The annual carbon sequestration increment was 85.30-101.95 Tg•a-1, mainly located in Tibet, Sichuan, Inner Mongolia, Yunnan, Jiangxi, Guangdong, Guangxi, Fujian and Hunan provinces. According to Chinese Forestry Project Construction Plan, the annual carbon sequestration potential in the six major forestry projects was estimated to be 115.46 Tg•a-1 by 2010 when the plan ends, which will be 11-1.5 times the annual forest carbon sequestration at present in China. The annual carbon sequestration potential of the six major forestry projects are as follows: The Natural Forest Resources Protection Project (16.25 Tg•a-1), The Returning of Cropland to Forest Project (48.55Tg•a-1), “Three Norths” and Yangtze River Forest Windbreak Projects (32.59 Tg•a-1), Beijing-Tianjin Surrounding Sand-Storm Control Project (3.75 Tg•a-1) , The Fast Growing Timber Project(1433 Tg•a-1). The implementation of the six major forestry projects will greatly increase the forest carbon sequestration potential in China and accordingly contribute to the reduction of global atmospheric CO2