China has become one of the largest consumer markets in the world. In step with rising consumer sales, “returns” are rising rapidly. “Retunes” and Reverse Logistics Systems in China are not well understood or studied. Reverse logistics is important to the company because it provides signals on product performance and customer service, monitor market trend and help the company to build the reputation. This project intends to define the current state of retailer and e-commerce reverse logistics systems in China, identify potential problems and bottlenecks, determine factors impacting reverse logistics development and culture implications. Finally, offer practical solutions to enhance reverse logistics systems. Literature review and process map are used in this research. Also, employees from Chinese companies, including third-party logistics companies, e-commerce companies, supermarkets and wholesalers, were interviewed. China’s reverse logistics are facing difficulties and bottlenecks, including abuse of return policies and forecasting uncertainty, but practical solutions are available for companies to implement. Businesses should use and combine these possible solutions according to their circumstances. As many companies are trying to gain competitive advantage, reverse logistics can become a sustainable competitive advantage for companies.