Sanjiang Plain in Heilongjiang Province is a vast, low lying alluvial floodplain of about five million hectares in the apex of the Heilongjiang (Amur) and Wusuli rivers. In its former natural state, the floodplain ecosystem consisted of a mosaic of sedge (Carex spp.) and reed (Phragmites communis) marshes, wet grass meadows (Peyeuxia angustifolia), ox-bow lakes, riverine Salix scrub and wooded hummocks of birch (Betula) and popular (Populus). Two protected areas (Honghe NNR and Sanjiang NNR, East and West) are located on the Sanjiang Plain (see Annex 7b), containing one of the few remaining examples of the natural mosaic of wetland habitats, mainly in Honghe NNR, which is listed as a 'Category A' site in the China Biodiversity Action Plan. The area is significant for the number and variety of globally threatened waterbirds it supports. In addition, the lakes and rivers support three endemic cyprinid fish species, three rare and two endemic amphibians and over 424 species of flowering plant, including four that are rare endemic species (see Annex 7a for details).

From the socio-economic perspective, Heilongjiang province contains some 2.76% of China's arable land, representing the largest area of cultivated land per capita of the country. Integration of wetland biodiversity conservation into the planning process for large-scale farming systems is an issue throughout eastern China. Where human populations are high and the development emphasis is focused on food production, wetland values have tended to be ignored in the planning process. During the past 30-40 years much of the wetlands of Sanjiang Plains have been reclaimed for agriculture, including cereals (wheat, rice), soy beans and other crops. The area of farmland has increased from 785,000 ha in 1949 to 3,680,000 ha in the early 1990s. There are 52 State Farms in the area and a national policy to encourage people to come to the Northeast to farm. The population of nearly eight million is within the five municipal jurisdictions of the Sanjiang Plain, of which the agricultural population is four million. Agricultural output is nearly three times industrial output, valued at over US $ 129 million (in 1993). Per capita income is about US $ 180/year.

Honghe NNR constitutes the focal point of the demonstration site in the Sanjiang Plain. The localized threats to the wetland biodiversity of Honghe NNR result from drainage and mis-management of water resources in surrounding areas, leading to water supply problems for Honghe NNR. Threats at the wider landscape scale apply to Honghe NNR, the nearby Sanjiang NNR and surrounding areas, and include:
a. Conversion of wetlands for agriculture, leading to isolation and extirpation of wetlands and biodiversity populations;
b. Agricultural run-off, leading to increased eutrophication.

Barriers for effective biodiversity conservation are:
a. No demonstration tools for multi-sectoral wetland management and hydrological restoration in agricultural areas;
b. Lack of an integrated and coordinated approach to wetland conservation in development planning;
c. Lack of awareness of the true values and functions of wetlands at all levels; and
d. Lack of technical capacity at all levels to manage and conserve wetland biodiversity effectively.

To address these threats and barriers, the Government of China has initiated a number of baseline measures, notably:
a. Restoration and protection of Honghe NNR as a priority activity under China's Agenda 21 and NWCAP;
b. Increased financial and management support for nature reserve protection and monitoring; and
c. Negotiation of an environmental fund (as part of an OECF, Japan loan) to mitigate the effects of agricultural intensification in areas around Honghe NNR.

However, these efforts focus mainly on water flow and quality and do not specifically address biodiversity conservation. Under this project, conservation of biodiversity will be integrated into land-use planning and restoration/protection efforts.