Abstract: This paper dealts with major progresses in China regarding water cycle studies and ecological aspects of Soil-Vegetation-Atmosphere Transfer (SVAT) in terms of energy and water fluxes. Firstly, the authors of present paper described their views on critical mechanism of water interactions including patterns and interfaces of subsystems' coupling. Secondly, the authors reviewed some research work on water and energy balance in farmland ecological system, in China's arid-semiarid lands, in terrestrial processes at large scale, in applying remote sensing data to energy fluxes and in resolving scale problems for the coupled systems.