There are two Cenozoic sedimentary basins in the East China Sea. They are the East China Sea shelf basin and the Okinawa Trough basin. The former can be divided into a western and an eastern rift region. The development of the shelf basin underwent continental-margin fault depression, post-rift and then tectonic inversion stages. Available exploration results show that the distribution of source rocks is controlled by the basin architecture and its tectonic evolution. In the Xihu depression, mudstones and coals are the main source rocks. The eastern rift region has good geological conditions for the formation of large oil and gas fields.