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To fulfill the Chinese government's targets for energy conservation and emission reductions, significant efforts to increase efficiency and reduce emissions in the energy system have been made by developing combined heat and power plants, expanding transmission, and incorporating renewables. These elements are not always compatible with each other, however. Renewables in particular face difficulties being integrated into the energy system, and a significant portion of this generation is often curtailed, in particular generation from wind. This article describes the work currently being done in China to move toward better energy system integration, including certain institutional and regulatory changes, continental-scale grid connection, microgrids, and storage. Further opportunities for flexible interaction between electricity and heat along with carbon capture and storage and the potential for increased gas supply from shale resources are also discussed.