Electric motor systems are widely used in China to power fans, pumps, blowers, air compressors, refrigeration compressors, conveyers, machinery, and many other types of equipment. Overall, electric motor systems consume more than 600 billion kWh annually, accounting for more than 50 percent of China's electricity use. There are large opportunities to improve the efficiency of motor systems. Electric motors in China are approximately 2-4 percent less efficient on average than motors in the U.S. and Canada. Fans and pumps in China are approximately 3-5 percent less efficient than in developed countries. Even more importantly, motors, fans, pumps, air compressors and other motor-driven equipment are frequently applied with little attention to system efficiency. More optimized design, including appropriate sizing and use of speed control strategies, can reduce energy use by 20 percent or more in many applications. Unfortunately, few Chinese enterprises use or even know about these energy-saving practices. Opportunities for motor system improvements are probably greater in China than in the U.S. In order to begin capturing these savings, China is establishing a China Motor Systems Energy Conservation Program. Elements of this program include work to develop minimum efficiency standards for motors, a voluntary "green motor" labeling program for high-efficiency motors, efforts to develop and promote motor system management guidelines, and a training, technical assistance and financing program to promote optimization of key motor systems.