Afforestation is a primary tool for controlling desertification and soil erosion in China. Large-scale afforestation, however, has complex and poorly understood consequences for the structure and composition of future ecosystems. Here, we discuss the potential links between China's historical large-scale afforestation practices and the program's effects on environmental restoration in arid and semi-arid regions in northern China based on a review of data from published papers, and offer recommendations to overcome the shortcomings of current environmental policy. Although afforestation is potentially an important approach for environmental restoration, current Chinese policy has not been tailored to local environmental conditions, leading to the use of inappropriate species and an overemphasis on tree and shrub planting, thereby compromising the ability to achieve environmental policy goals. China's huge investment to increase forest cover seems likely to exacerbate environmental degradation in environmentally fragile areas because it has ignored climate, pedological, hydrological, and landscape factors that would make a site unsuitable for afforestation. This has, in many cases, led to the deterioration of soil ecosystems and decreased vegetation cover, and has exacerbated water shortages. Large-scale and long-term research is urgently needed to provide information that supports a more effective and flexible environmental restoration policy.