Changes in China’s energy consumption and production, arising from energy supply-side reforms, are crucial components which will shape the structural adjustment of the country's energy field. These changes are also important for the medium and long-term development of energy in China. Additionally, from the point of view of energy resources and environmental protection, the changes in energy structure will entail reforms in means of energy production.

The biggest reason for repeated criticism since the implementation of the coal de-capacity policy lies in the fact that coal is one of the major energy sources. If the “coal reduction” campaign is carried out blindly, such a “one size fits all,” it will affect the momentum of China’s economic development. The direct consequence of the demonization of coal is skyrocketing energy prices.  Recent  increase in the price of domestic oil products can also  attributed  to the “one size fits all” type of coal de-capacity policy.