China and the Geopolitics of Hydrogen: An Awakening Giant?

In this paper, the authors discuss the role of China in the emerging geopolitics of hydrogen. It begins with a review of China's external energy policy and its evolution over the past decades, highlighting China's transition to a net-energy importer as an important inflection point in that process. It then goes on to describe the main pillars of China's national hydrogen policy. Building on this the paper provides and overview of China's external hydrogen policy and how this aligns with both its broader energy foreign policy and its hydrogen policy objectives. The paper finds that China’s hydrogen strategy – both internal and external – are still at an emergent stage. National targets remain modest, and policy remains ambiguous regarding the preferred production pathway. China’s long-term vision clearly emphasizes the role of renewable hydrogen to help balance an energy system dominated by wind and solar energy. However, current policy provides ample space for the promotion of other forms of hydrogen production. Rather, than a strong, centralized policy approach, local and provincial governments along with SOEs have been driving investment and policy experimentation in the sector, which includes efforts to boost fossil-based hydrogen production.