Since the 21st century, the transportation industry in China has achieved rapid growth with a significant increase in the transport capacity; however the development has also greatly impacted the energy saving & environmental conservation. This paper takes into account non-commercial vehicles such as private cars in the statistics of energy consumption and pollution of Chinese transportation system. This method extends on previous methods which solely include commercial vehicles in these statistics. Based on more comprehensive quantitative data, it reviews the progress in the energy saving and environmental conservation efforts by the Chinese transportation industry and points out that the rapid increase of energy consumption and pollution emission and the deterioration of traffic congestion are prominent problems in the development of the Chinese transport industry. The main reasons for theses problems include the unbalanced development of different transport modes, the irrational layout of integrated transport hubs, the inadequate law, regulations and standards, and the use of suboptimal technology. Based on these findings, this paper proposes several goals for the construction of a green transportation system in China including the establishment of a transportation management system, the improvement of transportation energy efficiency, the control of environmental pollution and the alleviating of urban traffic congestion. Additionally, it points out that in order to build a green transportation system in China, multiple aspects should be enhanced, i.e., the formulation of traffic planning, the optimization of transport structure, the development of urban public transport, improvement of integrated hubs, administration of energy saving and environmental conservation, development of intelligent transportation systems, technical innovations, etc..