Under the huge population and great potential for economic growth, building up an energy system in China is certainly of a global impact in both economic and environmental terms. Low level of per capita energy use and large population of non-access to electricity will make it difficult to make sustainable energy development in China. On the way to the development of China, five major challenges will be faced: increasing income gap, environmental problems, out-of-date devices and technologies, shortage of effective capital flow and increasing reliance on international oil market. Responding to these challenges, considered are several options including domestic public policies, institutional innovation and international cooperation along with FDI.
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