On December 27, 2017, the 31st session of the Standing Committee of the 12th National People’s Congress passed the Vessel Tonnage Tax Law of the People’s Republic of China. China’s Vessel Tonnage Tax Law has basically maintained the stability of the vessel tonnage tax collection system and accorded with the basic national conditions of China’s shipping industry. The system established by China’s Vessel Tonnage Tax Law is basically a traditional vessel tonnage tax system, which is different from those implemented by many other countries. This paper explores the reason why China chooses to implement the vessel tonnage tax system and evaluates the policy within a certain scope and from a certain angle. It also examines the shortcomings of China’s vessel tonnage tax system as well as the burden brought by it to the shipping enterprises and puts forward countermeasures and suggestions for reforming and perfecting the vessel tonnage tax system in China.