We analyze the environmental and natural resource dependence effects of Chinese economic growth, focusing on the period after the 1978 reforms. Environmental issues are of fundamental importance, as they affect the quality of life of current and future generations, but also determine the feasibility of certain growth strategies and political support at a larger scale. Understanding sustainability from the perspective of inter-generational equity implies setting environmental concerns at the centre stage. This chapter shows that China is facing significant challenges both from an environmental and from a natural resources perspective. At the same time, we show that there is increasing awareness for the need for political action, which can be the basis for the greening of the Chinese economy. The political action must come from China but also needs to be integrated into more globally ambitious objectives.