Based on the analysis of the present situation and problems in application of Internet of Things(IoT) technology in Chinese aquaculture, this paper puts forward some key technical issues and policy suggestions for the development of the IoT. At the moment, IoT technology has been used in the aquaculture industry for water quality monitoring, breeding area monitoring and management, livestock germination monitoring, aquaculture product storage and transport, and supervision of processing procedures. During this early development stage, China is faced with a number of challenges in the application of this technology, including: Backward extensive aquaculture practice and poor infrastructures; lack of advanced equipment and unified standards; and the need of large sum investment and high costs. A number of key technological issues should be solved in order to improve IoT application in this industry, including: precise aquaculture sensor technology for precise breeding simulation technology, precise intelligent control technology for aquaculture equipment, precise aquaculture management technology, and precise integrated production technology for large-scale aquaculture. Finally, this paper makes suggestions to relevant government agencies on the formulation of an comprehensive development plan for China aquaculture IoT technology to enhance industrial informatization and optimize the application facilities for IoT, initiate a research and development program for precise aquaculture environmental sensor technology, advance the implementation of aquaculture IoT demonstration projects, and upgrade the government’s capacity for promoting the commercialization of aquaculture IoT.