By the end of 2002, some 1,269 historical monuments and cultural relics in China had been placed under state protection. This follows the period in the 1990s when China made the largest investment ever toward protecting cultural relics. During that period, the special subsidies appropriated by the Central Government for the protection of cultural relics reached some 700 million yuan for about 1,000 projects. The Palace Museum in Beijing, Potala Palace in Lhasa and the Longmen Grottoes in Henan Province, for example, underwent major renovations. Concerned governmental departments invested in a special fund to protect cultural relics in the project areas of the national basic construction of the Yellow River Xiaolangdi Project and the Yangtze River Three Gorges Water Conservancy Project. The Law on Cultural Relics Protection of the PRC was revised in October 2002 for the first time to institute regulations on transfer and exchange of cultural relics.

Municipalities also are actively engaged in historic preservation. Beijing alone now has 3,553 officially recognized historic and cultural relics, including five sites on the UNESCO World Heritage List and 60 sites under state protection. Beijing’s 2002 plan for the Imperial City protected city walls, altar walls, water network, grassland, roads, the hutong (lane or alley) network and courtyard houses. From 2003 to 2008, the Beijing municipal government will invest 120 million yuan annually to preserve a famous historical and cultural city.  

The Chinese government lists 100 cities as famous Chinese historical and cultural cities under key protection, including the capital cities chosen by the emperors of various dynasties, politically and economically important cities during ancient times, places where important historical events took place, cities enjoying great reputations for their rare cultural relics and historical remains, and those famous for exquisite art works. The protection of these cities includes both the preservation of the ancient buildings and historical sectors, and the preservation of the layout and features of the ancient cities.

Two of the country’s better-known preservation sites are the ancient city of Lijiang in Yunnan Province and the ancient city of Pingyao in Shanxi Province. Lijiang lies in the Yunnan-Guizhou Plateau, a city known for its cobbled streets and canals; Pingyao was not far from the site where Zhang Yimou shot his award-winning film, Raise the Red Lantern. Both of these cities are among those on the United Nations World Cultural Heritage List. Aside from cities, it would be hard to find any other place in the world with as many ancient villages as China, a traditionally large agricultural country. Historic preservation authorities are planning a major ancient village protection project for these treasured villages and the folk culture, art and handicrafts that still thrive in them.