China has achieved stunning success in developing low-carbon energy technology, driven by the so‑called “New Three” sectors — solar panels, electric vehicles (EVs) and batteries. As these industries reach scale and maturity, Beijing is turning to new frontiers to sustain economic growth and reinforce energy security. It has homed in on hydrogen and nuclear fusion as two industries to develop in the next five-year plan from 2026-30, with formal policies expected next year. While Beijing’s focus is primarily on the domestic market for renewable hydrogen, rapid development and cost-cutting could help stimulate the wider global industry. Fusion is considered a longer game — but with potentially huge strategic importance.
