Energy plays an important role in the economic life. With the rapid development of economy, the constraint of energy on the sustainable development of economy is becoming more and more obvious. This paper just studies the factors influencing energy efficiency of China and the relationship between energy efficiency and China’s economic growth. By using time series multivariable linear regression methods with China’s relevant data from 1953 to 2006, this paper constructs the regression model to analyze the factors that would impact energy efficiency. After that, a regression model of China’s real output to capital, labor and energy efficiency is conducted to estimate the marginal contribution of every factor to the real output to prove the fundamental influence of energy eff iciency to the economic growth. In the end, some policies and recommendations are also put forward in order to improve the energy efficiency of China. Energy plays an important role in the economic life. With the rapid development of economy, the constraint of energy on the sustainable development of economy is becoming more and more obvious. This paper just studies the factors influencing energy efficiency of China and the relationship between energy efficiency and China’s economic growth. By using time series multivariable linear regression methods with China’s relevant data from 1953 to 2006, this paper constructs the regression model to analyze the factors that would impact energy efficiency. After that, a regression model of China’s real output to capital, labor and energy efficiency is conducted to estimate the marginal contribution of every factor to the real output to prove the fundamental influence of energy eff iciency to the economic growth. In the end, some policies and recommendations are also put forward in order to improve the energy efficiency of China.