This article addresses the causes of different regional performances of the forest sector in the process of Chinese rural reforms. After characterizing rural forestry reform processes in different regions, we estimate farmers' production responses to land tenure change and price liberalization, two major components of the reforms, and conduct a growth accounting. It is found that farmers' responses in different regions vary substantially, and the reform programmes can be important forces in determining either resource growth or stagnation. Our study suggests the critical importance of a stable policy environment in economic transition.