In the search for new drugs and natural remedies, medicinal plants or herbs used in folk and traditional medicines are promising candidates. For the naturally rare and slowly growing plant species, plant tissue culture in bioreactors provides a cost-effective, sustainable and well-controlled means for mass production of the active principles of medicinal plants, and enables fuller utilization of their biosynthetic capacity. Recognizing that natural resources and agricultural land in China are limited,many Chinese research groups have engaged in the development of plant tissue culture techniques and processes for the cultivation and rapid propagation of medicinal plants, and for the biosynthesis and biotransformation of phytomedicines. This review primarily aims to provide a comprehensive summary of the major achievements in this and related research areas in China over the last three decades, but also to identify the difficulties and predict future trends in developing plant tissue culture biotechnology for the manufacture of bioactive natural products.