Micro-grids are effective concepts and systems to interface renewable and sustainable energy resources into utility, which has been paid significant attention. In this paper, the policies and demonstrations of micro-grids for researches and developments, as well as practical applications in China have been comprehensively reviewed. Many recent policies on renewable energy and micro-grids are summarized, which have been guiding and contributing the development of micro-grids in China. Additionally, the available micro-grids demonstrations in China are also introduced in detail. Finally, the emergency necessaries and trends of micro-grid applications in China have been concluded.