Shaanxi province is one of the most important forest provinces in northern China. In 1999 the national government implemented the Grain for Green Program followed in 2000 by the Natural Forest Protection Program. Being able to confidently estimate carbon sequestration dynamics is a first step in determining how to increase sequestration levels. The study investigated the carbon storage dynamics of live forest biomass, depending on the relevant forest inventory data and empirical factors (wood density, root/shoot ratio, biomass expansion factor and carbon fraction). It showed that: (1) the carbon storage and carbon density of the forest vegetation of Shaanxi were 0.29 Pg and 46.3 Mg ha(-1) in 2009, respectively, values which had increased by 52.6% and 32.4% in 2009 compared with 1999. From 1999 to 2009, the carbon accumulation rate was 0.83 Mg ha(-1) year(-1). In 2009, carbon densities of the different forest types varied from 18.8 Mg ha(-1) to 188.1 Mg ha(-1); (2) the carbon storage of the immature forests (including young, middle-aged and premature) was 192.3 Tg, which accounted for 67.5% of total carbon storage. In the decade after China carried out its natural restoration, afforestation and reforestation programs the benefits of forest carbon sequestration were obvious. With appropriate management the forests of Shaanxi have great carbon sequestration potential.