The tropical and subtropical zone is located between 18.2-34.5 ° N latitude and 100-122° E longitude in southern China. Under favorable conditions, approximately 40 million hectares of the rangelands in this area show a potential for the development of animal husbandry. In recent years, the introduction of some legumes and grasses, as well as of techniques of cultivation from Australia and New Zealand has contributed to the improvement of these rangelands. The key species and the type of cultivation in different regions of this area have been basically defined, and an exploitation and improvement program is being designed. The progress made in several state farms is described and the prospects are also discussed.