In China, energy use per unit of economic output decreased significantly from 2000 to 2016. The decline in energy intensity was mainly due to better energy efficiency and technological progress. When looking at different factors affecting energy intensity, it was found that certain gaps in technology between industries and regions influenced these changes. Energy-efficient technology and management also played important roles in reducing energy intensity. However, there were instances of inefficiencies in output markets. This study suggests that local governments need to create targeted policies to address the specific characteristics of their region in order to further improve energy efficiency and reduce energy intensity.