Like many other countries in the world, China faces an increase in prison population. The traditional corrections model that relies heavily on detention and imprisonment has been costly but has not been shown to be effective in reducing recidivism and promoting offender rehabilitation. Since 2003, the Chinese government has turned to community-based corrections as a measure to improve the cost-effectiveness of the correctional system. This article provides an overview of the development of community-based corrections since its inception in China. The review focuses on the motivations underlying this correctional reform, its goals and objectives, key policy components, the scope of implementation, and potential barriers to building effective community-based correctional programs.