ABSTRACT
China is very unique in the way its government functions and how the various levels of government are involved so directly and prevalently in the energy business, even though most of the Chinese economy has become market-driven. The Chinese government does not separate the legislative, executive, and judicial powers like most Western democracies, checks and balances do happen in some very interesting and peculiar ways. When the Wuxi city government used its power to sponsor Suntech, it successfully created the world champion in photovoltaic (PV) manufacturing within just a few years. The state grid corporations have very quickly built the world's largest and strongest interconnected smart power grids, and their generous investment in pumped hydroelectric energy storage will help accommodate more clean energy, but their other ambitions might sometimes seem excessive. The Chinese central government has improved its energy and environmental governance and established its vision of transition to a low-carbon economy.
