This paper tries to use System Dynamics as a tool to analyze some existing problems in China's energy system. The paper first points out some most severe energy problems in China and the policies that people suggest toward the solving of these problems, then reveals the dynamics of these policies through simulations on an Energy Dynamic Model that we built. The analyses cover the issues of energy production and supply system, energy price, energy shortage, and industrial capital retrofit toward energy conservation, etc.. Some conclusions are derived from the analyses which are valuable for the solving of China's energy problems. And System Dynamics is believed to be an effective approach in energy price analysis in China.