The current situation of production and technology of Chinese aluminum metallurgical industry is studied comprehensively in this paper. The major contradictions and challenges faced by development of China's aluminum industry in the fields of resource, energy and environment are revealed. The competitiveness of production cost for Chinese alumina refining and aluminum smelting in the world is compared and analyzed. It is shown that the major factors to restrict China’s aluminum industry development are lack of high quality bauxite resource, higher power price, requirement for further improvement of production technology and no effective treatment of the solid and hazard wastes. The further development strategy for China’s aluminum industry is proposed based on the mentioned above, which is to strictly control the production capacity without out of order expansion and to make a reasonable industry arrangement, to optimize resource and energy supply structure, to improve the production core competitiveness by implementing high quality, energy saving and low consumption strategy, to realize standardized discharge and resource utilization of the waste gas emission, waste water and solid disposals from the China’s aluminum industry. This research results are of great significance to the industrial structure adjustment and high-quality sustainable development for China's aluminum industry.