For years, China's renewable energy output has been constrained and grid companies have not been forced to purchase maximum renewable generation volumes. China recently released a draft policy for its renewable portfolio standard. Though still in its draft form, the RPS policy is a solid step in the right direction after prolonged debate. If well enforced, we expect to see higher capacity utilisation of renewable power, as well as more market transactions that support faster penetration of renewable energy. But the draft policy could be improved by further clarifying the role of grid companies, setting challenging but achievable RPS targets, incentivising coastal markets to import renewable electricity, and adding detailed yet enforceable penalties to drive compliance. They are key to ensuring the policy has real teeth to bite.