Geothermal energy is a sustainable power source with considerable potential to facilitate net-zero emissions targets. China possesses extensive deep geothermal reserves, which could play a pivotal role in advancing its national energy transition. This paper reviews the principal approaches for exploiting deep geothermal resources, with emphasis on direct-use applications, power generation, and energy storage. Key technical and economic challenges are identified, including underground thermal imbalance, wellbore corrosion and scaling, mineralization reactions with CO₂, co-products extraction, brine reinjection blockage, and the advancement of drilling and stimulation technologies. Policy and regulatory constraints on geothermal development in China are critically examined and compared with established frameworks in leading geothermal-producing countries. Based on the insights, recommendations are proposed to advance deep geothermal development in China, including ① the establishment of a specific regulatory framework for geothermal exploration and development; ② enhanced investment in foundational research and the development of core technologies; ③ introduction of geothermal-specific fiscal policies; and ④ prioritization of the strategic implementation of geothermal projects across different regions.