China has been experiencing unprecedented economic growth, urbanization and motorization, which, at the same time has caused serious air pollution problems. To understand this complicated process and complex problems, this chapter provides an overview on China’s transportation and air quality related issues and ascertains associated health and economic consequences. The chapter first provides the context of urban transportation issues in China during the past several decades and associated traffic and air pollution problems. It then explores the intertwined urban transportation, land use and environment relationship in Chinese cities and assesses the impacts of transportation policies and planning practice. This chapter concludes with policy implications and recommendation for future practice and research.