China has 10-36 trillion m3 of promising shale gas deposits out of the worlds total predictedrecoverable reserves of 206.6 trillion m3.Recent exploratory and developmental experienceshave proven the worth of geophysical technology to serve as an important tool for shale gasproduction.However, the shale industry still at the nascent stage in China is currently facingnumerous challenges.Hence, the decision to politically intervene and to restrict datainformation availability generated a series of attacks and accusations against the new Chineseprotectionism.Transparency in the energy sector and the strengthen of a free market havebeen the main topic of the recent G20 meeting.China is trying to establish specificregulations and standards to address the related problems the industry is currently facing.Nevertheless, China is still a developing country, despite its gigantic growth and energyconsumption, therefore inadequate domestic structures impede China to fully comply andrespect WTO regulations in toto.The research aims to test the hypothesis that reduced transparency and increasedprotectionism, which implies higher subsidies and greater governmental intervention, isrequired at the present stage of development in the Chinese shale industry.The hypothesis istested by observing the gains and losses incurred in both a protected and free marketcondition through two case studies both within the energy industry as well as historical casesof parallel forms of governmental intervention.