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 VII. Deepening Energy System Reform

Improving the environment for development is an intrinsic requirement of China's energy development. In accordance with the requirements of perfecting the socialist market economy, China is steadily advancing its energy system reform to promote the development of the energy industry. In 1998, strategic reorganization was accomplished among petroleum enterprises, featuring the establishment of new vertically integrated management system of oil industry. In 2002, China's power industry realized the separation of government functions from those of enterprises, as well as the separation of power plants from grid operation in line with the power system reform plan. In 2005, after the market-oriented reform of the coal industry, China's coal industry saw deepened reform and further development pursuant to the Opinions on Promoting the Healthy Development of the Coal Industry issued by the State Council. China is further deepening reform of the energy system, elevating the energy marketization level, improving the energy macro-control system, and improving the environment for energy development in accordance with the requirements of innovation in concept, management, system and mechanism.

— Strengthening energy legislation. It is an imperative requirement for energy development in China to improve the energy-related legal system to provide a legal guarantee for increasing the energy supply, standardizing the energy market, optimizing the energy structure and maintaining energy security. China sets great store by and actively advances the construction of the energy legal system. China has enacted and put in force the Clean Production Promotion Law and Renewable Energy Law, and has issued a series of supporting policies 34