China's Energy Revolution: From Dependence to Independence, Leading a New Era of Global Transformation

On the ever-changing international stage, energy issues are like a crucial chess piece, not only influencing the economic development trajectory of various countries but also serving as a vital bargaining chip in international political games. For China, the limitations of traditional energy resources and high dependence on overseas energy are like the Sword of Damocles hanging overhead, constantly threatening national energy security and economic stability. However, the vigorous rise of the new energy revolution has brought a glimmer of hope for China to break free from this predicament and injected new vitality into the reshaping of the global energy landscape.   01 China's Crisis Under the Dilemma of Energy Dependence   As a major energy consumer, China's energy resource endowment is not ideal. Except for relatively abundant coal resources, oil and gas resources are extremely scarce, resulting in a persistently high external dependence. In 2024, China spent over 300 billion US dollars on imported crude oil. The long-term high external dependence has put China in a passive position in international political and economic games. Once the international situation is turbulent or supplies from major oil-producing countries are interrupted, China's energy supply will suffer a heavy blow, and economic development will fall into a huge crisis.   More severely, the Chinese military faces numerous challenges in safeguarding the safety of shipping routes from the Persian Gulf to the South China Sea, while the US military has the capability to cut off important transportation lines. In the increasingly complex international situation, the safety of energy transportation channels has become a key link in China's energy security. If the safety of shipping routes cannot be effectively guaranteed, China's energy supply may be cut off at any time, which would have unimaginable consequences for China, which is highly dependent on energy imports.   New Energy Revolution: The Path to Breaking the Dilemma and a New Chapter of Development   The official proposal to develop new energy aims to address climate change and achieve carbon neutrality, but for China, achieving energy independence and self-reliance is the core goal. The new energy revolution is committed to replacing traditional energy resources such as coal, oil, and natural gas. Through the development of new energy, China can reduce its dependence on overseas energy, ensure national energy security, and promote sustainable economic development.   Automotive Sector: The Rise of New Energy Vehicles   In recent years, China's new energy vehicle market has witnessed explosive growth. In 2023, sales of new energy vehicles in China exceeded 6 million units, accounting for half of global sales. In 2024, the charging capacity of new energy vehicles reached 110 billion kWh. To achieve the same driving mileage, fuel vehicles would need to consume approximately 50 billion liters of gasoline and diesel, which theoretically requires 100 million tons of crude oil for refining, equivalent to half of China's domestic crude oil output that year. At last year's oil prices, this would cost 60 billion US dollars, while generating 110 billion kWh of electricity costs about 30 billion RMB. This fully demonstrates the huge advantages of new energy vehicles in terms of economy and reducing oil consumption.   Currently, the higher the usage intensity of new energy vehicles, the more significant the effect of replacing refined oil consumption. Vehicles with annual mileage of over 100,000 kilometers, such as taxis and ride-hailing cars, have basically achieved electrification. With technological progress and cost reduction, the market share of new energy vehicles is expected to further expand, and their substitution effect on traditional fuel vehicles will become more prominent.   Other Transportation Fields: Accelerated Electrification Process   In addition to the automotive sector, the electrification process in other transportation fields in China is also advancing steadily. In 2024, the electrification rate of China's railways reached 75.2%, and inland waterway transport ships are also actively transforming, which will weaken the demand for refined oil. Although electrification in the transportation field faces problems such as high power supply investment and high prices of new energy vehicles, the electrified system has obvious advantages in terms of full-life cycle cost, and the initial high cost is expected to decrease rapidly through technological progress.   Power Sector: Remarkable Achievements in New Energy Development   In the power sector, China has made remarkable achievements in new energy development. By the end of 2023, China's installed wind power capacity exceeded 300 GW, and solar photovoltaic installed capacity exceeded 500 GW. The target for 2025 is that the share of wind and solar energy in China's energy structure will rise to about 30% of total power generation. The development of new energy power not only helps reduce carbon emissions but also reduces reliance on traditional coal-fired power generation, improving the stability and sustainability of energy supply.   02 Multiple Benefits of the New Energy Revolution   Economic Benefits: Significant Results in Cost Reduction and Efficiency Improvement   The new energy revolution has brought significant economic benefits. Taking new energy vehicles as an example, their energy replenishment cost is much lower than that of fuel vehicles, and car owners with higher usage intensity are more inclined to purchase new energy (pure electric) vehicles. From the perspective of full-life cycle cost, the electrified system has obvious advantages. Although the price of new energy vehicles was once higher than that of fuel vehicles for a long time, the gap has now narrowed significantly. Although pure electric heavy trucks currently have high prices and insufficient competitiveness, relying on subsidies and preferential policies, in the long run, there is huge room for cost reduction.   In the power sector, the cost of new energy power continues to decline. Taking solar power generation as an example, the cost per kilowatt-hour has dropped significantly over the past decade. Currently, the cost per kilowatt-hour of large-scale power stations with good conditions has reached about half of that of thermal power and is still continuing to decline. With the construction of a new power system, new energy power is expected to reduce the comprehensive cost per kilowatt-hour of the power industry, bringing more dividends to economic development.   Energy Security Guarantee: Enhancing Independent and Controllable Capabilities   The new energy revolution is of great significance for ensuring China's energy security. By developing new energy, China can reduce its dependence on overseas oil and natural gas and lower the risk of energy supply interruption. The development and utilization of new energy mainly rely on domestic renewable resources such as wind, solar, and hydropower, which are widely distributed and can provide China with a stable and reliable energy supply. With the continuous innovation and development of new energy technologies, China's energy self-sufficiency rate is expected to further improve, enhancing its voice and competitiveness in the international energy market.   Creating New Business Forms: Opening a New Journey of Innovative Development   The great significance of the new energy revolution also lies in creating new business forms. New energy vehicles are not only different from fuel vehicles in terms of power sources but also an intelligent platform. Relying on this platform, it is expected to create richer application scenarios than the mobile Internet of mobile terminals, such as intelligent driving, Internet of Vehicles, and shared mobility, which will profoundly change people's travel and lifestyle.   In the field of new energy power, with the reduction of costs and the improvement of absorption capacity, some emerging business forms will flourish. The development of large-scale energy storage technology will ensure the stable supply of new energy power and provide more possibilities for power market transactions and optimization.   03 International Influence of China's New Energy Industry   Export of New Energy Products and Global Contribution   China has become the world's largest country in new energy equipment and new energy utilization. China's photovoltaic and wind power products are exported to more than 200 countries and regions around the world, providing high-quality green products for people of all countries. In 2022, China's renewable energy power generation and exported wind and photovoltaic products contributed a total emission reduction of over 2.8 billion tons of carbon dioxide equivalent, accounting for about 41% of the global carbon emission reduction converted from renewable energy in the same period. The development of China's new energy industry has provided important support for the global response to climate change and energy transformation.   Enhanced Discourse Power in the International Energy Pattern   As China's new energy industry continues to grow and develop, its discourse power in the international energy pattern is increasingly enhanced. World crude oil consumption is about to reach its peak, and strategic-level buyers of oil and gas are scarce. As one of the world's largest energy consumers, China will have greater say in energy trade and international cooperation. At the same time, China's leading position in new energy technology will also provide strong support for it to play a greater role in international energy rule-making and global climate governance.   04 Challenges and Coping Strategies   Challenges Facing New Energy Development   China's new energy development also faces many challenges. Traditional industries such as steel, chemicals, and cement are major carbon emitters, with high costs and long cycles for low-carbon transformation, and large market demand. How to reduce emissions while ensuring economic growth is a major problem. The volatility and intermittency of new energy lead to unstable output. Wind and solar power generation are greatly affected by weather and time. Solving the problem of renewable energy absorption and improving energy utilization efficiency are key challenges. In addition, carbon neutrality involves collaborative cooperation in multiple fields such as transportation, construction, and agriculture. Coordination and policy support among various industries require efficient communication and coordination, and differences in policy implementation between local governments and the central government also increase the difficulty of cross-field collaboration.   Coping Strategies   To address these challenges, it is necessary to increase green financial support. Governments and financial institutions should provide financial guarantees for the development and construction of new energy projects by providing loans, issuing bonds, and establishing funds. At the same time