Lunar exploration and exploitation have thrived in recent years due to advancements in space technology and the increasing demand for better utilization of the moon. These activities fall within the realm of outer space activities, mainly governed by international space treaties. However, lunar exploration, especially resource exploitation, is challenging to conduct at the moment under a definitive and generally acknowledged space treaty. The Moon Agreement, as the specific international space treaty addressing these activities, is not currently functioning well. Inspired by the US, several nations opposed to the Moon Agreement have chosen to enact national legislation to address the legal uncertainty. The US has initiated international accords unilaterally in an attempt to establish standards for rules on lunar exploration and exploitation, which has generated significant influence. As one of the major players in this arena, China must face this competitive situation and assume responsibility for establishing a harmonious environment for lunar exploration and exploitation. Instead of emulating the US approach and getting entangled in the competition of rule-making, China should consider accession to the Moon Agreement as a means to attain legal certainty, not only for its own requirements but also to contribute to the realization of international cooperation through space treaties adopted by the United Nations to the fullest extent.