Concerning the development of electricity industry in China, Anbound Think Tank chief researcher Chan Kung has pointed out that electricity is a low efficiency business model. Electricity business now has a lot of hidden costs that are yet to be shown up. Labor, system and logistics costs increasing, let alone other hidden costs. Now China is blindly supporting electricity business, as it is an unsustainable business model. The smarter business owners would find ways of transformation. Therefore, China should be careful, and in a few years the retail business will recover; based on the urbanization and aging trends, this is quite possible.