For many decades, acid deposition used to pose a significant regional air pollution challenge in China. After substantial emission control of anthropogenically derived sulfur and nitrogen containing gasses, both sulfur and nitrogen deposition, as well as the acid rain-affected area, have significantly decreased compared to their peak levels. Forests, particularly in the humid subtropics, are sensitive to acid deposition, as evidenced by soil acidification, sulfate and nitrate leaching in stream water, and elevated soil nitrous oxide emission. Reduction in the total deposition of sulfur and nitrogen, caused a significant decline in sulfate and nitrate leaching from subtropical forest and subsequently in sulfate and nitrate concentrations in stream water, although there was about a 5-year delay. This delay may be attributed to the desorption of accumulated sulfate and continued elevated mineralization of accumulated nitrogen pools. Emissions of nitrous oxide, a potent greenhouse gas, also declined in nitrogen-saturated subtropical forest soils, as soil water nitrate concentration decreased. Therefore, subtropical forests in China suffering from elevated acid deposition have begun to recover. Yet, the current levels of sulfur and nitrogen deposition continue to exceed the critical loads, i.e., the assigned threshold levels in accordance with emission control policies, in more than 10% of the country’s land area, respectively, indicating remaining risks of acidification and eutrophication. Thus, further emission reductions are urgently needed, also because they will help achieving goals related to air quality and nitrous oxide emissions.