The rapid development of the building industry has become an important driving force for the fast growing energy use in China. The building industry contributed 26.4% of China’s GDP, and the building energy use accounted for 33% of the total energy use in China. Building energy conservation plays an important role in reaching the peak of carbon emissions before 2030, which was committed by the Chinese government in the Paris Agreement. Building energy conservation is a complex system. The guidance and support of government policies are one of the important issues. This research analyzed the institutional framework for building energy conservation in China. The roles and functions of each institution were critically reviewed. The policy system for building energy conservation was also analyzed, which included National Laws; Regulations of the State Council; Provisions of Ministries under the State Council; and National Standards, Plans and Programs. The suggestions for further improvements were drawn from the critical analysis such as defining clear and specific responsibility of management institutions, improving regulations and standard system, establishing the market leading mechanism, etc. This research draws an overall picture of the building energy conservation in China from the policy and institutional perspective. Findings provide a useful reference for increasing environmental performance in the building industry.