The neotenic genus Atelius Waterhouse, 1878 from China is reviewed and two new species are described: A. brevicornis sp. nov. and A. kadoorieorum sp. nov., both from the tropical rainforests of Yunnan. The general appearance of all Chinese species and the morphology of male genitalia are illustrated and a key to all Atelius species is provided. The distribution of Atelius and other widespread neotenic net-winged beetles in the northern part of the Oriental region indicates their survival in disjunctive regions, which were not affected by aridization and cooling of the climate. The current distribution is hypothesized as a relict of the earlier continuous range of neotenic beetles in the Oriental region.