China is facing a number of challenges, such as environmental pollution, energy security, and slowing down of economic growth. China's total energy consumption has been leading the worldwide consumption for several years. China's annual primary energy consumption accounts for more than 90% of total energy consumption, and the country's utilization of wind energy, solar energy, biomass energy, and other new form of energy remains very low. This research has adopted a strength, weakness, opportunity, and threat (SWOT) analysis approach to examine the internal and external factors that affect the competitiveness of the energy industry in China. An extensive and critical review of a wide range of literature was conducted, including academic papers, industry reports, statistical data, relevant regulations, and policy documents. Eighteen factors were identified from the literature review. These factors form part of an integrated framework that provides a useful tool for policy makers and the industry to gain a better understanding of the factors that affect the sustainable development of the Chinese energy industry. The results also provide a useful reference for foreign firms that intend to explore the Chinese energy industry market.