The shift to a sustainable development has become an important issue in China. This paper discusses the role of green ammonia in promoting China's energy, environmental and economic sustainability which has not drawn enough attention. First, key challenges in China's energy transition, decarbonisation and regional sustainable development are explored. The coal-dominated energy consumption has placed great obstacles in achieving energy transition and led to massive CO2 emission since the large-scale industrialization. The high dependency on oil and gas import has threatened China's energy security. Imbalanced and unsustainable regional development is identified with data envelopment analysis. Second, the potential of green ammonia in meeting these challenges is analysed. Ammonia is examined to be a flexible and economic option for large-scale hydrogen transport and storage. Co-firing ammonia in coal power generation at 3 % rate is evaluated as an option for achieving low-carbon transition by 2030. Benefits of developing a green ammonia economy is discussed from energy, environmental and economic aspects. The practice can decline fossil energy consumption, enhance energy security, and facilitate renewable energy delivery and storage, industry decarbonisation, and regional development. We assume the findings and results contribute to addressing sustainability challenges and realizing a hydrogen economy in China.