To achieve their carbon peak and carbon neutrality target, China’s energy transition is seen as the most important instrument. Despite the rapid growth of renewable energy in China, there are still many challenges. Based on the review of the contemporary literature, this paper seeks to present an updated depiction of renewable energy in the Chinese context. The potential, status quo, and related policy of China’s renewable energy are thoroughly investigated. The challenges facing renewable energy development under the carbon neutrality target are analyzed, including enormous transition urgency and pressure, technology, and policy issues. Then, coping strategies are proposed to guide the direction of renewable energy development. Technology paths and policy recommendations are presented. This paper contributes to technology developing and policymaking by providing a comprehensive, thorough, and reliable review of renewable energy development in China.