Currently, resource supply and demand contradiction, and over-loaded environment capacity have become a bottleneck for sustainable economic development in China. Electro-mechanical products are approaching a peak of obsolescence, and massive abandoned electro-mechanical products are causing severe environmental pollution, huge waste of resources and potential safety hazard. Remanufacturing is repairing or modifying worn mechanical products using high-tech method, which buffers the contradiction between wasting and shortage of resources, and brings industry towards a comprehensive utilization of resource and environmental protection. As a new strategic industry, remanufacturing, which is highly coherent with the development strategy of the circular economy, is still in its infancy in China. This paper analyzes the developmental trends and problems of the remanufacturing industry in China, and proposes promoting measures based on the engineering practices of remanufacturing.