Environmental problem is becoming more severer day by day. China, as one of the largest carbon emission entities, has implemented CDM projects to help it reduce carbon emissions, and achieve sustainable growth. The CDM benefits both developing and developed countries by helping developed countries to reach emission reduction targets and providing subsidies for developing countries to build sustainable projects. The research paper shows that CDM is preferred by China to other projects due to its advantages, such as the CERs trading mechanism, the investment and subsidy from foreign countries, and the technology transfer. Meanwhile, after CDM adoption, the country has built some institutions and enacted appropriate regulations to construct CDM projects more efficiently. In the last part of the research, the influences of CDM on the domestic economy has been analysed, where both data and past paper from the official website and published articles show positive effects of building CDM, including job creation and decreasing worrying over the electric shortage. In conclusion, CDM projects and Chinese circumstances are compatible in several aspects which are presented in the paper. The compatibility contributes to Chinese sustainable development and provides other developing countries with a sample to learn from.