After a temporary halt following the Fukushima nuclear disaster in March 2011, China resumed its fast, yet cautious, expansion of nuclear energy programme. Nuclear energy is considered as part of the general strategy to deal with the challenges of energy security and climate change and to advance with 'state of the art' technology in its development. This article briefly discusses recent development in and driving forces behind nuclear industry in China, and several challenges it has been facing: how to adopt, adapt, standardise and indigenise whose technologies, and how to address the shortage of qualified nuclear engineers, scientists, skilled labour force and qualified regulators. More importantly, it argues that safe and secure nuclear development requires consistent policies and effective regulations. Therefore, it is crucial to build policy and regulatory capacities based on coordination, planning and management of government agencies and the industry.