The design and promulgation of energy policy in China is conducted in a top-down manner by a political and technocratic elite. Policies are shaped by a paradigm that values state control of the energy sector, and most policy initiatives are incremental in nature, with a few exceptions. Despite the apparent advantages of centralized policymaking, decades of progressive decentralization of economic authority, combined with the long-standing fragmentation of the bureaucratic structures and the power of large state-owned enterprises, act to undermine or constrain the effectiveness of many policies. The central government responds with constant policy adjustments. The current leadership is pursuing a strategy that combines centralizing control of key policy initiatives while at the same time encouraging new actors to participate in the energy sector.