Abstract: Developing direct trading between power users and plants is an important part of the electricity market in China.With an eye on the current economic situation,a brief survey is made of administrative planning and free market operation as part of the forms of resource allocation that will coexist into the future.Based on such an understanding,a discussion is made on some of the crucial issues of direct trade between power users and plants,such as,market access,trading room,trade organizations,transmission and distribution prices,ancillary services,congestion management,trade execution and merits and demerits of different schemes with a view to benefiting direct trading.