Abstract: This paper studies and analyzes the installation and operation status of 101 sets of continuous emission monitoring system (CEMS) in 75 representative thermal power plants in China; it also analyzes 10 national laws and regulations that are related to CEMS. These analysis shows that the installation of CEMS at thermal power plant is required by the emission standards and its data becomes legal following the check and verification of CEMS; CEMS installation is necessary for power plant environmental management, for governmental supervision, and also for favorable treatment of environmentally friendly power plants. The paper also points out the major problems associated with current CEMS development, which includes under-regulated market, lack of enough oversight from the government, not enough attention from power plants, waste of financial resources, outdated monitoring approaches from environmental authorities, missing of compete management decrees, and weak role of the electricity council. It recommends expedited promulgation of relevant management decrees, improvement of the CEMS market, securing the operation of installed CEMS, exploring new CEMS management methodology, and strengthening of industry’s self-governing capacity.