Climate Change has emerged as an international problem warranting policy responses from all countries, rich or poor alike. Developing countries face the dual burden of securing ecological health and pursuing economic development. China as one of the leading developing economies today has instituted an elaborate climate change policy. Given China's predisposition towards economic growth and developmental concerns, this paper seeks to analyse the various factors that has helped in determining its climate policy. The paper argues that China's climate policy is not governed by ecological concerns alone. It is rather an array of economic and developmental concerns and opportunities that has provided the leadership with the incentive to initiate climate change policies.