China is a large densely populated country undergoing rapid industrialization and is becoming one of the world's biggest consumers of natural resources. This circumstance provides a sharp contrast with other countries. As China is so significant in the global economy, studies of its eco-industrial development are very important. In this study we examined the state of eco-industrial development in China and have drawn conclusions from this analysis about some of the future prospects for sustainable development. In the analysis, we investigated the application of industrial ecology concepts by reference to several case studies. We have therefore described the current environmental situation in China, and have provided an overview of eco-industrial development and its implementation. Constraints to industrial sustainability in China have also been examined. We consider that eco-industrial development in China is in its infancy, and that closed loops involving chains and industrial symbiotic webs are the technological key and core of successful initiatives in the application of industrial ecology. In the case studies, we found that each system has different characteristics and management concerns. Our major conclusion is that even though China's Agenda 21 highlights the principles and sets the directions for eco-industrial development, these have not yet become essential ingredients in the country's industrial policy and practice for implementing Agenda 21.