As China is now in the process of industrialization, the expansion of industrial production leads to rapid growth in energy consumption in both absolute and per capita terms. In 2004, China’s total value added of industry (VAI) reached 5480.51 billion RMB, with a 16.7% annual growth over the preceding period. The shares of heavy and light industry in total VAI were 67.6% and 32.5%, respectively. According to a study by the National Development and Reform Commission (NDRC), China has come into the stage of heavy chemical industry era and the output of high energy consuming goods such as steel, cement, soda ash and caustic ash et al, increased dramatically in recent years (Table 3).