The aim of this report is to provide strategic guidance to U.S. policymakers on engaging China on climate change. In the first section, I set the context by discussing China’s energy use, emissions, and future projections, including potential emissions reductions and trajectories under different policies. In section two, I review China’s recent policies to address climate change and energy conservation. I focus on the status of implementation of its energy-efficiency goals under its 11th Five Year Plan. I also anticipate future developments in Chinese energy and climate policy. Finally, in section three, I propose a strategy for U.S. engagement of China on climate change.