China has been the world’s largest aquaculture producer over the last few decades, contributing 57% of global production in 2022. However, after decades of rapid growth, China’s aquaculture sector faces significant challenges including environmental degradation, resource competition, aging labor force, and shifting from net exporter to net importer status. In response to these challenges and the rising philosophy of ecological civilization since the 2010s, China has implemented comprehensive transformation initiatives prioritizing green development and sustainability over pure production expansion. This study analyzes 85 transformation initiatives implemented across China’s aquaculture sector from 2019 to 2024, evaluating their alignment with international frameworks and measuring their effectiveness. Key policy interventions include the Five Actions for Green and Healthy Development of Aquaculture, spatial planning designating aquaculture zones, restricted zones, and prohibited zones across 1,959 administrative regions, and expansion into new frontiers including offshore systems, saline-alkali lands, and recirculating aquaculture systems. Major achievements include the establishment of 1,614 demonstration farms covering 640,000 hectares, promotion of nine eco-healthy farming models, development of 98 new breeding varieties, 11.3% reduction in veterinary drug usage, and 33% substitution of trash fish with compound feed. The government invested 4 billion yuan (CNY) in standardizing 83,333 hectares of ponds with improved wastewater treatment during 2021-2023. National R&D programs allocated 300 million yuan (CNY) for innovation in blue granary science, intelligent equipment, and sustainable feed development. Results demonstrate that despite reduced farming areas due to environmental protection measures, productivity gains have been achieved through pond standardization, mechanization, and breeding improvements. Freshwater pond yields, unit value of products, and labor productivity all increased significantly since 2000. The transformation represents a paradigm shift from production-oriented to sustainability-oriented aquaculture, offering valuable lessons for other major producing nations facing similar environmental and socioeconomic pressures. This comprehensive assessment provides insights into policy effectiveness, innovation pathways, and the role of government investment in driving sectoral transformation toward ecological sustainability while maintaining food security.