About 45 percent of China's natural wetlands are well protected, said a senior official with the State Forestry Administration (SFA) on Monday.

SFA deputy director Zhao Xuemin told a forum on wetlands in the Yellow River valley that, excluding rice paddies, wetlands covering more than 100 hectares amounted to 38.48 million hectares, and natural and seminatural wetlands account for 3.77 percent of the total area of China.

The government launched the national wetland protection project this year, which will finance the protection and recovery of wetlands for the first time, said Zhao.

Under the program of the national wetlands protection project ratified by the State Council last year, the government will invest 500 million yuan (62.5 million US dollars) in wetlands and nature reserve protection this year.

However, drought and unsustainable farming has caused a decrease in area and loss of function, particularly in western China, said Zhao at the forum in Yinchuan city.

Zhao said the government was planning to bring wetlands protection into the comprehensive management of China's river valleys and had conducted pilot projects in the Yellow River valley, tablelands and coastal areas.

The Chinese government has just established a state-level wetland park in Yinchuan, a city located on the banks of the Yellow River, in a move to save regional wetlands areas.

As the country's third state-level wetland park, the park, consisted of lakes, marshes and meadow, covers over 2,000 hectares and is home to 114 plant types and 107 bird species.

The park is a major stopover for migratory birds in western China.

The other two state-level wetland parks, both in East China, are in Hangzhou, capital of Zhejiang Province, and Qinhu Lake, Jiangsu Province.

China has 66 million hectares of wetlands, the most in Asia and fourth-largest in the world.

Lakes and marshes constitute the majority of Chinese wetlands, which play a vital role in water conservation, flood prevention and soil purification. They also helps protect biological diversity.