Potatoes play an important role in ensuring food security. During the COVID-19 epidemic, consumption of processed potato products decreased, and consumption of fresh potatoes increased. China is the world’s largest potato producer with more than 4.81 million hectares of area under potato production and 90.32 million metric tonnes of potatoes produced in 2018. This accounts for 27.36% of the world’s planting area and 24.53% of the world’s potato production. The proportion of potatoes processed in China was about 12% in 2017, mostly dominated by starch production. However, the recent policy of the Chinese government to popularise potato as a staple food has created new markets for processed potato products other than starch. A very few reports have analysed these future trends of the rapidly growing Chinese potato processing industry and its impact within and outside China. This paper provides an overview of the latest developments with a focus on processed potato products such as potato chips, French fries and dehydrated potatoes, and also, due to the unique Chinese diet culture, it highlights the need for more scientific research dedicated towards the development of novel potato-based healthy foods.