Recombinant DNA is a new method to create transgenic rice with foreign genes from other species. This method could be helpful to increase rice yield, quality and consequently to solve the problem between population expansion and sustainable development. Because rice is significant in human's diet and China is one of its original centers, the potential problems to human health and ecosystems caused by transgenic rice has aroused people's attention. This paper reviewed the research and development progresses of transgenic rice, analyzed the bio-safety of food and cultivated rice varieties, wild rice species and paddy weed species due to the development of transgenic rice. Base on the comparison between the profits and defects, some countermeasures are provided to solve the potential bio-safety problems while to develop transgenic rice in China.