ABSTRACT China is the only nuclear-armed country in the world that has an unconditional No First Use (NFU) of nuclear weapons policy. China’s practice of this policy and its impact on international security have important implications for the international debate around NFU and inform other countries’ potential consideration of NFU. Whether NFU policy could deliver the expected benefits of reducing the role of nuclear weapons, containing nuclear arms competition, and mitigating the risk of nuclear proliferation depends on the perceived credibility by other countries of such policy. This paper examines a number of internal challenges that may affect the perceived credibility of China’s NFU policy. One of them is Chinese military strategists’ expressed interest in threatening nuclear use in a conventional conflict under certain conditions through the so-called “lower the nuclear coercion threshold” operation. The others include the lack of institutional constraint in the Chinese system to ensure implementation of NFU and the growing ambiguities about the NFU policy’s applicability in specific scenarios as a result of new technological development. The paper offers recommendations on how China can address these challenges and work with other countries to create the conditions for the international adoption of NFU, including how to address the concerns of nonnuclear weapons states about the conventional-level security consequences. It concludes by discussing how China and the other nuclear-armed states can better fulfill their disarmament obligations by strengthening the existing NFU policy and promoting credible NFU policy more broadly.