Environmental biotechnology has emerged as an important measure to tackle the environmental pollution as China experiences great economic success. Over the past decade, much emphasis has been paid to the following fields in environmental biotechnology: microbial degradation of toxic and organic chemicals, bio-treatment of wastewater, waste recycling. The Chinese researchers have done a lot of work to understand the natural degradation processes for organic and toxic compounds and finally to clean these compounds from polluted environments. For the treatment of wastewater, many new processes were proposed and optimized to meet the more strict effluent standards in China. Finally, more and more attention has been paid to the reuse of discharged wastes. In this chapter we review the development in the above fields.