Degradation of forest and grasslands in western China attributes to the soil erosion and desertification in the country. Researchers have established that the primary reason for the degradation of grasslands is overgrazing, which in turn is caused by a number of factors, including over-population and over-reliance on animal husbandry. In addition, the existing administrative system has also proved ineffective in ensuring sustainable development. On contrary, many local governments even encourage exploitative development of grassland; thus, localities opened up grassland for growing crops in an effort to increase income. According to estimates, degraded grassland accounts for more than one-third of utilizable acreage and another one-third suffers from a profusion of rats and pests. To redress the situation, central government should implement strategies in achieving sustainable development, such as providing banking and tax incentives for the development of the secondary and tertiary industries, and supporting education and training of youths from herding areas. Moreover, government should increase spending on infrastructural construction and ecological preservation. Finally, the family planning program needs to be enforced to control population growth and improve the quality of peoples¿ lives.