The ground-coupled heat pump (GCHP) systems have been identified as one of the best sustainable energy technologies for space heating and cooling in residential and commercial buildings. Research and development on the GCHP technology in China are summarized in this paper including those in the heat transfer modelling and thermal response test of the ground heat exchangers, drilling and grouting facilities for construction of the ground loops. The GCHPs for building heating and air-conditioning are extended to more comprehensive applications combined with the ground heat exchanger in foundation piles and the seasonal thermal energy storage from solar thermal collectors. Government incentives and market prospects on the GCHP technology in China are also presented.