China, as the second-largest aviation market, is making significant strides in the research, production, and adoption of Sustainable Aviation Fuel (SAF) to align with its carbon peak and neutrality targets. Despite having a substantial SAF production capacity of 3.32 million tonnes per year, challenges like developing commercial deployment and refueling facilities persist. The country is focusing on policy enhancements, supply chain optimization, financial incentives, and price alignment to ensure long-term viability of SAF. China plans to diversify its SAF technologies beyond HEFA to include synthetic fuel, carbon capture utilization, storage, and hydrogen integration to support its national energy transition. The article highlights China's evolving policy framework for SAF, with recent initiatives like the 14th Five-Year Plan setting consumption targets and the release of sustainability requirements for alternative aviation fuels. The country aims to integrate SAF into its domestic aircraft industry, with plans for SAF demonstration flights and the establishment of a Sustainable Aviation Fuel Research Centre. China's SAF production primarily uses the HEFA pathway, with existing and planned capacities set to meet future demand projections. Looking ahead, China anticipates a significant increase in SAF blending ratios beyond 2030, with projections indicating a rise to 65% by 2060. The government is expected to intensify incentives like tax reductions and subsidies to drive corporate investments in SAF production. By leveraging international mechanisms like book-and-claim, China aims to embed SAF within global supply chains, enhancing its competitiveness in the aviation decarbonization space. Overall, China's SAF industry is poised to play a crucial role in global aviation decarbonization efforts.