We propose in this paper an integrated energy strategy based on a systems approach to address the energy challenges and energy dilemma in China. First, we give a review of existing approaches to energy planning and strategic management, followed by a discussion on the major relationships among energy, economical, environmental and societal systems. Next, we present a conceptual system model with alternative solutions and clarify corresponding concepts. Based on the results, we propose, summarize, and present strategic ideas as policy implications for China's decision makers. In conclusion, we determine that China should enhance strategic planning and regulation from a life cycle viewpoint of the whole society, prioritize energy saving, continuously improve incumbent energy, and rationally develop alternative energy. (C) 2010 Elsevier Ltd. All rights reserved.