CCS is seen as an important and strategic technology option for China to reduce its CO2 emission, and has received tremendous attention both around the world and in China. Scholars are divided on the role CCS should play, making the future of CCS in China highly uncertain. This paper presents the overall circumstances for CCS development in China, including the threats and opportunities for large scale deployment of CCS, the initial barriers and advantages that China currently possesses, as well as the current progress of CCS demonstration in China. The paper proposes the implementation of a limited number of larger scale, fully integrated CCS demonstration projects and explains the potential benefits that could be garnered. The problems with China's current CCS demonstration work are analyzed, and some targeted policies are proposed based on those observations. These policy suggestions can effectively solve these problems, help China gain the benefits with CCS demonstration soon, and make great contributions to China's big CO2 reduction mission. (C) 2011 Elsevier Ltd. All rights reserved.