Purpose: This paper aims to conduct a detailed analysis of the feasibility of issuing sukuk in China and examine the regulatory issues related to the issuance of sukuk in China. Design/methodology/approach: This study uses SWOT analysis to explore China’s internal and external environments related to the issuance of sukuks and examines the application of sukuks as an alternative financing instrument in China. Findings: As a unique financial instrument, a sukuk can assist in meeting China’s current financing needs. Moreover, it is feasible to issue a sukuk. China should be prepared to modify its legal system and set up a regulatory framework conducive to the issuance of sukuks. Furthermore, blockchain technology can be used to overcome certain limitations of sukuks. Originality/value: This study provides a detailed analysis of sukuk issuances in China. This study discusses the issue of sukuk issuance in China from the perspective of finance and law.