This report was prepared within the framework of the FAO Fisheries Departments continued efforts to contribute to poverty alleviation and hunger reduction in developing countries through aquaculture development. It seeks to analyse the reasons and factors, especially the role of public sector policies, which were behind aquaculture development in China. The aim is to make the Chinese experience available to other parts of the world, especially developing countries, for them to evaluate ways whereby they could benefit from this experience of sustainable and lucrative aquaculture practices. With continued pro-active government policies, adequate advanced planning, scientifically designed production technologies, sound management and the increasingly important world demand for aquaculture products, aquaculture in China can be and is likely to be productively stable, sustainable and competitive both domestically and internationally. The report discusses valuable lessons which can be learnt from the Chinese experience.