Energy and transport have long been considered the two major bottleneck constraints to China’s economic development. This chapter examines the extent to which investment expansion and economic development have been constrained by shortfalls in energy supplies. It highlights the close linkage between effective energy supply and long-distance transport, particularly railway freight transport. Energy in this research refers to primary modern (commercial) energy, which includes coal, crude oil, natural gas and hydro-power, as opposed to traditional (noncommercial) fuel such as crop by-products, firewood, grass, and dung.