China’s economic development will face serious problems from the point of view of current supply and demand of its energy resource. The main issues include: 1) China will face an extremely serious issue of limits on energy resources; 2) Low technical levels in energy utilization technologies have resulted in low efficiency of energy use; 3) The problems of environmental pollution will be even more serious considering to China’s energy supply is overly dependent on coal. Therefore, China’s future energy development strategy will require major improvements in energy efficiency, the use of cleaner fossil energy resources, a restructuring of the energy sector, and an increase in renewable energy use, in order to make progress towards achieving more sustainable economic development. In the past decade, the Chinese government has developed several plans, regulations and policy measures related to the development of renewable energy technology and increasing energy efficiency, and have gained great achievements. In China, there remain many barriers during the development of RE, such as lack of clear targets, ambiguity in legislation and roles, etc. the best option is mandatory measure. The Environment Protection and Resource Reservation of NPC has listed the RE law into the legislation plan and will be passed in 2005. The basic content of the legal obligation has been proposed. Some policy mechanisms will be involved in the law of renewable energy. RPS is one of the mechanism options. In China, it is called Mandatory Market Share (MMS) policies, and a model MMS framework for China was designed.