Abstract: The fertilizer industry is the backbone of agriculture. Traditional fertilizers like urea, ammonium phosphate, potassium chloride, and compound fertilizers are heavily invested and play a key role in making sure China has enough food. As China’s agricultural development shifts away from resource consumption and toward green and sustainable development, new-type and high-efficiency fertilizers capable of achieving food security and environmental security become a major demand for green agricultural development. New-type fertilizers in China include slow/controlled-release fertilizer, value-added fertilizer, water-soluble fertilizer, commercial organic fertilizer, and bio-fertilizer. Compared to traditional fertilization, applying new-type fertilizers increases crop yields and nitrogen (N) use efficiency by 4.6%−17.5% and 16.8%−52.3%, and reduces ammonia volatilization, N₂O emission, N leaching, and N runoff by 7.2%−50.7%, 8.1%−40.8%, 16.5%−43.8%, and 22.1%−45.4%, respectively. After decades of research and development, China’s new-type fertilizer achieves industrialization and global leadership in production. However, this innovation was met with some limitations, including the short development period of the new-type fertilizer industry, the lack of original core technologies, the low match between fertilizer product characteristics and agricultural requirements, the lagging development of fertilizer application technology and equipment, and the need to improve administrative systems, policies, and laws. The following strategies should be focused on to achieve the transformation and upgrading of the new-type fertilizer industry towards the overall goal of green and high efficiency in the new stage: 1) bridging the gap between fertilizer properties and agricultural practices; 2) increasing fertilizer efficiency by shifting focus from nutrient supply to soil environment and crop absorption. This can be achieved by developing environmentally friendly and cost-effective additives containing plant growth stimulants and soil remediation materials; 3) maximizing resource use and reducing energy consumption during fertilizer processing and preventing new-type fertilizer production from secondary processing; 4) constructing a whole-chain supervision system covering production, marketing, and application of new-type fertilizer to ensure green production, quality retracing, and efficient use.