To address climate change, an assessment of carbon sequestration and emission reduction potential resulting from the current utilization of crop residues was conducted in China. In 2020, crop residue production increased to 737.5 × 10⁶ tons with maize in Northeast China identified as the primary driver, compared to 2001. Currently, 82.3 % was collected and used either as fertilizer (62.3 %), feed (16.0 %), energy (9.6 %), cultural substrate (0.8 %), or raw materials (1.1 %). The comprehensive utilization of crop residue offered 62.6 × 10⁶ t C eq yr⁻¹ in offsetting carbon emissions, equal to 27.7 % of the nation's agricultural carbon emissions. Notably, 58.3 %, 22.2 %, and 19.5 % were contributed by used as fertilizer, feed, and energy, respectively. North China (27.0 %) and the Middle-Low Yangtze River (23.6 %) were the most important contributors. Therefore, vast potentials exist to achieve carbon neutrality through efficiency and judicious allocation of crop residue as a precious resource in China and the globe.