The CDM-AR project is a market-oriented approach to absorb carbon dioxide through afforestation and reforestation according to the Kyoto Protocol. This paper analysised the status of the CDM-AR projects in China, and asked why there are so few CDM-AR projects in China even in the world? The reasons include: Financial constraints, Constraints associated with knowledge, skills and other social factors. The particular reasons for China include: the specific terrains and soil fertility in China, the ownership of the forest land and so on. The CDM-AR project which can offer many economic, social and environmental beneﬁts, is at the initial stage. It has great potential. The potentials of the CDM-AR project include: introduction of foreign capital and advanced technology from developed countries; establish of the forest ecological compensation mechanism in China; lower cost than the cutting emission ways at home for the developed countries.