The CO2 flooding technology is an important technology to enhance oil recovery in low permeability reservoirs and to realize the geological sequestration of CO2 so that it has the wide application prospects in China. In view of the complex geology and development characteristics of the continental low permeability reservoirs in China，the CO2 displacement theory，optimal design of reservoir engineering，injection-production engineering and anticorrosion technology，CO2 recovery and utilization technology and the progress of the field test etc.of SINOPEC are systematically presented. The challenges and technical requirements of the CO2 flooding technology in the low permeability reservoirs are analyzed，and the suggestions on accelerating the development of CO2 flooding technology are put forward from the aspects of the low-cost capture，transportation of CO2，reduction of the miscibility pressure，improvement of the CO2 flooding effect，CO2 storage and monitoring technology，and supercritical CO2 fracturing. It is of the great significance to promote the CO2 flooding and storage technology，improve the reserve producing rate and oil recovery，guarantee the national energy supply and reduce the CO2 emission.