Global climate change is one of the most complex environments, energy, economic, and political issues confronting the international community. Clean Development Mechanism (CDM) is one of the flexible mechanism defined by Kyoto protocol to lower the overall cost of reducing greenhouse gas (GHG) emissions released to the atmosphere, and to support sustainable development initiatives within developing countries. China is undoubtedly the largest potential CDM market in the world, mainly due to its heavy reliance on coal for energy, and its lack of up-to-date technologies on energy efficiency and renewable energy. In order to achieve Sweden's long term climate strategy, it is very necessary to build a close linkage with China, clearly understanding what China needs and what Sweden can offer from the both energy supply and demand side. This report is part of the work for the project of "Climate Change Mitigation through CDM: Policy, Technology and Market Impacts for the Sweden - China Case" supported by Swedish Energy Agency. The overall goal of the project is to address the complex interrelationship among energy, environment and climate change policies, and study CDM's impacts on technology transfer, governmental policies, economic development and social development in China and Sweden. Moreover, this project intends to identify the opportunities and barriers of developing CDM projects between Sweden and China, and find out any potential opportunities of CDM project cooperation between the two countries. This technical report gives an overview of Chinese energy supply, energy consumption, energy efficiency and renewable energy development. It reviews Chinese government's policies and measures on energy and GHG emission mitigation and clarifies Chinese governmental arrangements and practical procedures for CDM projects implementation. This report also made preliminarily review of ongoing studies and existing hurdles and barriers for CDM project in China.