Early childhood education and care (ECEC) is one of the key challenges facing China. This paper reviews the development of ECEC in China and its challenges. Substantial developments and policy reforms related to ECEC since the 1980s have been examined, and the practices in China have been highlighted. The review reveals that the ECEC system has evolved significantly in China over a while, both in policy and practice. However, most of the significant changes in the ECEC system have been adopted from Western practices. This adaptation has created several problems in the ECEC structure, as these policies were based on a Western cultural context. Moreover, despite continuous efforts from the government, disparities in ECEC services are evident in urban and rural parts of the country. The quality of the ECEC system is another concern for China. Childcare services (0--3) in China are also inadequate, and fewer policies in the past have tried to focus on this aspect of ECEC. The study concludes with suggestions based on the review analysis.