China is a significant producer of kaolin with 2.1 Mt in 2002 representing 8.4% of the world’s total of 24.9 Mt. The kaolin resources are widespread throughout the country and are varied in their origin, physical and chemical properties and morphology. The kaolin industry, compared to Europe and the USA, is fragmented with no single large company. In 2002, China was the world’s largest producer of ceramics, particularly for sanitary ware and porcelain. Also, China is now the second largest producer of paper and paperboard in the world. The quality of kaolin and halloysite is suitable for ceramics with no need to import. However, the quality of existing paper/board-coating clays is not up to the quality of imported material from Brazil and the USA and there is an urgent need to develop local resources to meet the present and future demands of the market.