The morphology, chemistry and phylogenetic relationships of Chinese populations of Bulbothrix are described. Nine species, including two new species B. mammillaria Y. Y. Zhang & Li S. Wang sp. nov. and B. lacinia Y. Y. Zhang & Li S. Wang sp. nov., and two newly recorded for the flora, B. scortella and B. meizospora, are reported. Bulbothrix mammillaria can be recognized by the sparse cilia that are reduced to a bulbate structure and the broad lobes (3–11 mm). Bulbothrix lacinia differs from other species of the genus by dark brown, spherical to short-cylindrical isidia and common lacinulae on the upper surface. Phylogenetic relationships of currently known ITS sequences from Bulbothrix were inferred to assess the affinities of the new species. A key to all known species from China is presented.

The type collection of Parmelia goebelii (Bulbothrix goebelii) was discovered to be a mixture of several different Bulbothrix species. The true identity of B. goebelii is established and problems regarding the variability of this species discussed. The species B. papyrina, B. scortella and B. subdissecta, synonymized with B. goebelii by Hale, are resurrected as valid taxa. A detailed description of B. goebelii is presented, its lectotype is selected, and the characteristics of all four species discussed.