Abstract: The development of the space industry presents new challenges for spacecraft environment engineering, while also provides rare opportunities for the technological progress and field extension of this specialty. Over the past decade, thanks to the successful implementation of a series of major space programs such as manned spaceflight and deep space exploration, China has made significant progress in various aspects in the field of spacecraft environment engineering. The development process of spacecraft environment engineering in China was reviewed in this paper. The challenges and the key technologies to be faced by spacecraft environment engineering under the context of new demands such as the long-term operation of China Space Station, the new deep space exploration missions, and the construction of low Earth orbit (LEO) mega-constellations were analyzed. The latest advancements made by Beijing Institute of Spacecraft Environment Engineering in areas including in-orbit detection and data analysis of LEO radiation environment, safeguarding against space special environmental effects, conducting specialized dynamic environment and thermal environment testing technology for Mars probes, and developing ISO standards for spacecraft environmental testing were introduced based on specific work contents. As China strives to establish itself as a space power, spacecraft environment engineering will undoubtedly achieve a higher level of transition alongside the overall upgrade of technological progress of spacecraft.