With about 22% of the global population and less than 10% of cultivated land worldwide, China faces many challenges in the agricultural sector. This paper reviewed and synthesized the major challenges facing the Chinese agricultural sector and its future prospects. The study identified urbanization, industrialization, changing dietary preference, limited land, environmental pollution and trade liberalization as major problems facing the Chinese agricultural sector. Despite these challenges, the sum of productivities of cultivated land and other agricultural inputs will increase China’s food production from 94.4% in 2000 to 101.3% in 2030, which implies that China will meet its demand for food with an increasing population. According to the predictions of food demand and comprehensive food productivity from cultivated land and other agricultural resources, China’s total agricultural productivity cannot be 100% self-efficient before 2020. However, by 2050, China will record a surplus of agricultural productivity of approximately 850 Mt, which means that China is likely to meet its future demand for food when total productivity of agricultural resources are given special attention.