Energy, which has a bearing on both economic and national security, is of importance and a major constraining factor to the economic and social development of China. The article analyses the current worldenergy status and development trend from the perspectives of resources, production and consumption and in thecontext of its implications on the environment and economic and social development, and explores opportunitiesand challenges for Chinas energy development. With a focus on the strategy of energy development in China,the author proposes a new energy development approach with Chinese characteristics whose main elementsare: energy-saving, high-efficiency, diversified development, environment protection, technology guidance andinternational cooperation. In other words, China is striving to build a reliable energy production, circulationand consumption system that is efficient, technologically advanced, low polluting and ecologically friendly. Along-term development strategy with priority on energy conservation, efficient utilization of primary energyand advanced electricity system is expounded in the paper. The author also describes the prospect of energytechnology development and stresses the implementation of energy strategy by further improving energy policyand related mechanisms, strengthening macro-management and the essential role of the market in resourceallocation so as to ensure the economic and social development of China through reliable energy supply.