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The high strength-weight ratio and high damping capability of Magnesium alloys implies significant potentials for improving fuel efficiency and vehicle performance with the use Mg wheels. In this paper, a brief review is given of the current state of art in Mg wheel production, followed by a summary of the mechanical and casting properties of Mg alloys. The difficulties that hinder the wide use of Mg wheels are discussed. The R&D activities in China in the fields of Mg wheel design and casting are described. The focus of this paper is on the design and the development of a new squeeze casting process that makes it feasible to produce high-quality Mg wheels with cost efficiency. Finally, the expected commercial use of Mg wheels in the near future in Chinese motorbikes is outlined.