Abstract: China is abundant in heavy oil resources. At present, heavy oil development mainly relies on thermal recovery techniques, including cyclic steam stimulation(CSS), steam flooding, steam assisted gravity drainage (SAGD) and insitu combustion(ISC). Based on summarizing the current situation of four thermal recovery techniques for heavy oil in China, CSS accounts for more than 50% of heavy oil production. And CSS production are generally in the middle and late stages of development, and it is urgent to change the development methods. In recent years, steam flooding, SAGD, ISC techniques have achieved significant advancement, but still need to be improved and upgraded. The results of carbon emissions per ton of heavy oil measured for different development techniques show that under "Carbon Peaking and Carbon Neutrality" targets in China, thermal recovery techniques for heavy oil characterized by "high energy consumption and high carbon emissions" are confronting double challenge from quality and efficiency improvement as well as energy conservation and emission reduction. Through analyzing the key features of heavy oil in main oilfields and assosicated downstream industry chain and value chain, it is deemed that naphthenic-based heavy oil is mainly treated as raw materials for chemical products. The intermediate products play important and irreplaceable part in downstream industry chain in China. Therefore, it is essential to keep stable heavy oil production in China during the "14th Five-Year Plan" period(2021-2025) and in the future. To achieve the "Carbon Peaking and Carbon Neutrality" targets of the state and oil companies and cope with the double challenge, the paper proposes countermeasures and suggestions for future heavy oil development. Specifically, at the policy level, it is recommended to push the upgrading of heavy oil processing industry, enhancing the development of heavy oil products, and adjusting the heavy oil pricing strategy accordingly to make heavy oil more representative of raw materials for chemical products. At the technical level, it is recommended to continuously improve the existing thermal recovery techniques and optimize and adjust the production from various thermal recovery techniques, promopt the study of limited thermal recovery techniques and low carbon steam generation technique; intensify efforts to research and develop efficient cold production techniques for heavy oil, such as heavy oil polymer flooding and emulsion water flooding.