ABSTRACT Eel aquaculture in China has transformed over the past five decades from experimental pond culture and technology import into the dominant production and processing center of the global eel industry. This expansion was driven by strong East Asian demand, technological improvements, and the scaling‐up of eel farming and processing in China. However, rapid growth also created persistent structural pressures. This sector became dependent on scarce wild glass eels. That dependence left it exposed to transboundary seed and disease risks. High‐density farming added environmental costs. External market fluctuations made the sector even more vulnerable. Its historical trajectory can be understood through three connected phases. From the 1970s to the 1990s, export‐oriented production was established through locally adapted farming systems, but this also locked the sector into wild‐seed dependence and the Japanese market. From the 1990s to the 2010s, the introduction of European eel and other species helped improve production resilience, while the expansion of intensive farming and food‐safety regulation increased biosecurity and compliance burdens. Since the 2010s, wider use of green technology, rising domestic consumption, and regional cooperation have reshaped the industry. Yet artificial propagation remains commercially unresolved, and green technology may raise capital, energy, and technical barriers for smallholders. This review examines China's eel aquaculture as a case of rapid industrial upgrading, focusing on how the sector can move from output‐driven growth toward a more resource‐secure, low‐carbon, biosecure, and socially inclusive development pathway.