China at the forefront of energy innovations: From renewable energy to nuclear fusion

Pidchosa, Oleksandr and Hunda, Anastasiya (2026) China at the forefront of energy innovations: From renewable energy to nuclear fusion. In: Changing World, Changing Economy. Budapesti Gazdaságtudományi Egyetem, Budapest, pp. 5-16. ISBN 9786156886262

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Abstract

Over the past several years, the topic of energy sufficiency and security for states has once again come to the forefront in the context of the reconfiguration of primary energy resource flows due to the following: increasing geopolitical tensions, growing energy demand from developing countries, and the rapid rise in electricity consumption associated with the large-scale commissioning of data storage and processing centers, widespread use of artificial intelligence, expansion of electric vehicle adoption, active robotization of production, and other factors. As before, energy security remains a cornerstone of development and remains important for maintaining competitive economic positions, but in modern conditions of geo-economic and geopolitical uncertainty the requirements for energy security are significantly increasing in the context of growing energy deficit. At present, by developing and implementing a wide range of technologies across all subsectors of the energy industry China has built the world’s largest energy infrastructure and continues to develop it thus reshaping the global energy landscape. This comprehensive approach is interesting in itself, as is the speed of its implementation. This paper investigates China’s pioneering role in energy innovations, starting from expansive renewable sources like solar, wind and hydro to cutting-edge technologies such as advanced energy storage, hydrogen technologies, smart grid infrastructures, and nuclear fusion. Through a qualitative analysis of official documents, policy frameworks, and recent technological breakthroughs, we explore how these advancements shape the country’s new energy profile through enhancing the resilience and competitiveness of the economy, as well as positively impacting the environment. At the heart of this transformation lies a state-coordinated approach: massive investments in fuel, the rapid deployment of non-fossil energy systems, supported by policies. We highlight technological breakthroughs and innovations that enhance domestic resilience, reduce import dependencies (notably in oil and gas), and position China as a leader in global supply chains through vertical integration and state-guided R&D. By examining these elements, the paper emphasizes how China’s model  blending policy foresight, industrial capacities, and technological self-sufficiency  offers valuable lessons for industry development, while also raising questions about geopolitical implications and the feasibility of replication in other countries. This paper argues that China’s energy trajectory is redefining competitiveness, which intertwines environmental goals with economic and strategic positioning.

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