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China is an energy poor nation on a per-capita basis, despite the abundance of energy resources. The most significant energy resources problem is not extraction or development, but distribution. Almost without exception, energy resources are in wrong places, far from consumption centers and hard to reach where they needed. Growing demand and inefficiency are the main cause of China s Energy shortage. Accelerating development of power-intensive machinery, auto, steel and manufacturing sectors, the growing pace of urbanization and low energy efficiency are the main causes of China s extensive energy shortage, which may worsen before 2020.