In this chapter, the AAI for China is calculated by using the 2011--2012 data from the China Health and Retirement Longitudinal Study (CHARLS). Its findings reveal the unrealized potential of Chinese older population comparing to countries in the European Union (EU). It is argued that social policies should aim at enabling older people to maintain quality of life and contribute to the family, the economy and society. What can be safely recommended includes: (1) flexible retirement plans for older population to voluntarily participate in labour market; (2) an efficient community based old-age care system and lifelong learning system to enable the older population to enjoy active, independent, secured and healthy life.