China is the focus of this analysis. However, the reader should understand that despite the enormity of the China energy challenge, the United States is still a bigger consumer of energy despite having less than one-quarter the population. US culpability does not obviate the need for critical analysis of China—the biggest contributor to the planet’s energy profile at the margin. The lessons learned in thinking about China may soon have to be applied to India as well. While this report is written about China for US and other Western analysts and policymakers, and not about the US energy footprint, the US and Chinese economies are of course profoundly related in terms of the distribution of production and shared interest as energy consumers. Much of the energy China consumes is used to make products sold to the rest of the world, thus replacing energy demand in other countries. As such, the basis for reforming China’s energy sector may well include equally profound changes in the United States and elsewhere.