China has launched a special fund to protect thousands of hectares of wetlands surrounding the country's largest inland lake, the Qinghai Lake, local authorities said on Wednesday.

Considered sacred by Tibetans, Qinghai Lake is home to 189 species of birds and a crucial barrier against the encroachment of the desert from the west. [File photo]

A total of 5.5 million yuan (860,000 U.S. dollars) will be channelled from the central government in two years to protect 8,667 hectares of wetlands around the lake in southwestern Qinghai Province on the Qinghai-Tibetan Plateau, said He Yubang, director of the Qinghai Lake National Reserve Administration.

The administration has signed an agreement with three counties which own the wetland, asking them to ban grazing in the area in order to restore the ecological environment there, said He.

Qinghai Lake, a saltwater lake at more than 3,200 meters above sea level, boasts a water area of 4,232 sq km. Considered sacred by Tibetans, it is home to 189 species of birds and a crucial barrier against the encroachment of the desert from the west.

China in 2008 embarked on a 10-year investment plan to use 1.57 billion yuan to protect the lake's environment, vowing to restore the beauty of the lake by protecting its wetlands, planting more trees, reverting pasture to grassland and controlling desertification.

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