Abstract:  This paper introduces some major research progresses of the 973 project “Variability of the water and energy cycles and their impact on the extreme climate over China under the global warming background” in the past year. The main results include the new understandings on the characteristics of water and energy cycles over different land surface in East Asia, the observational facts of the extreme climate over China and their connection with the water and energy cycles, some new methods of the shortterm climate prediction, and the projection of the extreme climate over China. Finally，the future research plan of this 973 project is also briefly presented.