The pollution discharge system is a key foundation for the protection of the environment in the United States and the European Union. China’s pollution discharge system has a history of over twenty years. We began this project by conducting a literature review and field surveys to: understand the implementation of the pollution discharge system in selected Chinese cities; determine the problems impeding the pollution discharge system; to compare and contrast China’s pollution discharge system with that of other countries to elucidate lessons from international experience; propose policy recommendations to improve China’s pollution discharge system. While our research background introduces the use of permit systems for managing the discharge of pollutant in various media, such as water and solid waste, we focus on air PDPs. Our conclusions and suggestions reflect the general problems with China’s implementation and management of its pollution discharge system.