Review of the overall energy situation in China

China, as one of the biggest countries in the world, has been increasingly influential in global energy issues. This chapter introduces the overall picture of China’s energy development since 2000, regarding energy production, consumption, energy mix, final energy use, the relationship between energy and economy, and environmental issues related to energy activities. Regional variation is also briefly introduced. In general, the Chinese energy market is becoming increasingly linked with the international market, by importing over 60% of its oil requirements and 30% of its gas. In indigenous production, coal takes the lead, fortunately, with a downward trend; gas and non-fossil energy supply are expanding. As regards energy consumption, two notably different phases are evident, 2003–2011 and 2012–2015. In the former phase, much higher annual energy growth rate (>10%) and elasticity (>1.0) and rebounded energy intensity were observed, warning the country of energy security, the over-consumption of coal and huge environmental impacts. With moderated economic growth and strong policy intervention, the latter phase saw the situation relieved. Manufacturing industry is still for the majority of final energy use, with the proportion used by transportation and building increasing. The chapter concludes that China needs to transit to a low-carbon energy system more rapidly in order to achieve its own Nationally Determined Contribution (NDC) and global 2°C target.