China’s health profile has shifted to one dominated by obesity and nutrition-related noncommunicable diseases (NR-NCDs) necessitating an examination of how economic policies can improve this situation. Edible oil consumption is responsible for much of the increase in energy density of the Chinese diet and particularly linked with the shifting burden of NR-NCDs toward the poor. Longitudinal analysis among adults in the China Health and Nutrition Survey (CHNS) covering the period 1991 to 2000 revealed that price policy effects on edible oil can influence dietary composition (particularly of the poor) and the results identify a key preventive policy need.