We evaluated the element budgets in a forested watershed in Jiulianshan, southern China. The element input in bulk precipitation was characterized by high depositions of H+, NH4+, Ca2+, and SO42−, i.e., 400, 351, 299, and 876 eq/ha/yr, respectively. The outputs of H+, NH4+, and SO42− from the watershed were very low, while those of Ca2+ and Mg2+ were high, 712 and 960 eq/ha/yr, respectively. The element budgets suggested that i) the net retentions of H+, NH4+, and SO42− in this watershed were high, and ii) the net release of Mg2+ from this watershed was high mainly due to weathering. The net release of Ca2+ was not so high because of the high atmospheric deposition, while atmospheric deposition of Mg2+ was not so high (130 eq/ha/yr). Decrease of acid neutralizing capacity in the soil, i.e., net soil acidification, was caused mainly by the net release of Mg2+. Moreover, the net retention of SO42− also contributed to soil acidification.