Abstract. Accurate high-resolution actual evapotranspiration (ET) and gross primary production (GPP) information is essential for understanding the large-scale water and carbon dynamics. However, substantial uncertainties exist in the current ET and GPP datasets in China because of insufficient local ground measurements used for model constrain. This study utilizes a water-carbon coupled model, Penman-Monteith-Leuning Version 2 (PML-V2), to estimate 500 m ET and GPP at a daily scale. The parameters of PML-V2 (China) were well-calibrated against observations of 26 eddy covariance flux towers across nine plant functional types in China, indicated by Nash–Sutcliffe Efficiency (NSE) of 0.75 and Root Mean Square Error (RMSE) of 0.69 mm d−1 for daily ET respectively, and NSE of 0.82 and RMSE of 1.71 g C m-2 d−1 for daily GPP. The model estimates get a small bias of 6.28 % and a high NSE of 0.82 against water‐balance annual ET estimates across 10 major river basins in China. Further evaluations suggest that the newly developed product outperforms its global version and other typical products (MOD16A2, SEBAL, GLEAM, MOD17A2H, VPM, and EC-LUE) in estimating both ET and GPP. Moreover, PML-V2 (China) accurately monitors the intra-annual variations in ET and GPP in the croplands with a dual-cropping system. Using the new data showed that, over the last 20 years, the annual GPP and water use efficiency experienced a significant (p < 0.001) increase (8.51 g C m-2 yr-1 and 0.02 g C mm-1 H2O yr-1, respectively), but annual ET showed a non-significant (p > 0.05) increase (0.65 mm yr-1). This indicates that vegetation in China exhibits a huge potential for carbon sequestration with little cost in water resources. The PML-V2 (China) product provides a great opportunity for academic communities and various agencies for scientific studies and applications, freely available at http://dx.doi.org/10.11888/Terre.tpdc.272389.