Underground thermal storage is beneficial for compensating for the imbalance in the spatiotemporal distribution of energy supply and demand. Aquifer thermal storage is an effective way of reducing carbon emission, which has been proved in many countries. China is on track to achieve its dual carbon goals, this paper reviewed the history of aquifer thermal storage, its developments, the progress of research of potential evaluation and site selection, heat recovery efficiency and risk analysis and control and explored potential of ATES in China. In recent years, geothermal exploration and development in China has developed rapidly, drilling, reservoir stimulation and reinjection technologies are mature in geothermal industry, however, the research of site selection, operational parameters controlling the thermal recovery efficiency, aquifer thermal storage system design, the economic benefits still need to be strengthened.