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In this article, recent development and future challenges in generation, transmission, and the market aspect of electric energy systems in China are described. For each of the subjects, the major challenges being faced and the measures and policies being taken are listed. China has to take a leadership role in future technology R&D in all aspects, including clean energy development and efficient energy utilization with state-of-the-art power electronics and information technologies. Hopefully, China will be able to lead, not just in the deployment and utilization of electric energy systems but also in the development of new technologies in the coming decade to benefit the nation and the world.