In understanding Chinese energy security, this thesis looks towards Chinas energyhistory, current structures and Centralpolicies in place. Nevertheless,it takes a step back andlooks towards a larger systemic issue and the complexity of Chinas energy arena Inparticular, decentralization rooting back to Deng Xiaopings Opening and Reform has hadvarious consequences that explain the complications of Chinese energy Byanalyzing the coalsector, this thesis explores these three consequences or more specifically decentralizationsdetriments: undisciplined investments, uneven development, and uncoordinated outgoingactivities have transpired After an understanding of these consequences,tben perhaps Chinawill be more able to address gaps in its energy administration and ablysecure the countys energy demanrds.