This paper examines the phenomenal growth of social work in China and the complexities and challenges faced by the profession and related stakeholders in the context of neoliberal economic practice within a hierarchical top-down political system. It proposes developmental social work as a viable indigenous social work practice mode. This analysis based on a collection of academic papers and relevant government reports sheds light on the interplay between welfare developmentalism, institutional dynamics, and professional challenges in the broader sociopolitical context, not least the neoliberal co-optation of social development aligned increasingly with economic goals to the detriment of broader social and structural issues. It shows how the political parameters of the Chinese Communist Party and its pursuit of community integration and social development shaped China’s approach to social work. It sees the necessity for a system of welfare services to address socio-structural issues and the indigenization and cultural adaption of social work in China as an expressly political process. Regarding the former, the government’s strategy of outsourcing public services to accord with its agenda has resulted in a contractual relationship between social organizations, including nongovernment and social work organizations, and the state. This has limited the independence and hindered the development of a strong civil society, and curtailed social workers’ autonomy, exacerbating professional challenges relating inter alia to the low number of qualified social work practitioners, limited job opportunities outside major urban centers, high staff turnover, and poor quality services provided by those without formal social work training. To enhance professional recognition in China, the paper suggests a holistic developmental approach that involves the resolution of individual problems through investing in people, helping them to build their capacity, drawing on social capital, and capitalizing on market opportunities to promote self-reliance, thereby contributing to community and social development.