Beijing Bets on Fossil Fuels Even as It Leads the World in Renewables

China has emerged as the world's leading producer of renewable energy by rapidly expanding solar, wind, and battery storage projects, while simultaneously increasing its oil and gas production. This dual focus on renewables and fossil fuels aims to bolster China's energy self-sufficiency and reduce its dependence on foreign imports.

According to the National Energy Administration, China produced a record 216 million metric tonnes of crude oil in 2025, while natural gas output grew by 10 billion cubic metres. Chinese oil and gas companies also expanded the nation's reserves, adding 1.32 billion metric tonnes of oil equivalent of recoverable resources. Recent data shows that crude output increased by 0.9 per cent to 4.42 million barrels per day between January and July.

The government's policies to reduce reliance on energy imports have enabled China to stabilize its oil supplies, even as the global market has been volatile due to geopolitical issues like the Iran War and the closure of the Strait of Hormuz. To further fortify its energy reserves, China plans to strengthen strategic oil corridors, diversify its oil and gas suppliers, and enhance connectivity.

While China has not yet achieved fossil fuel self-sufficiency, its increasing output in oil and gas has helped reduce imports, which hit their lowest level since 2017 in May. Looking ahead, China aims to boost domestic production to 440 million metric tonnes of oil equivalent by 2030, expand its pipeline network by 20,000 km, and increase natural gas storage to exceed 13 per cent of national consumption.

The government also plans to launch new oil and gas exploration auctions to attract investment, advance key technologies for deep offshore resources, and develop carbon capture and storage capabilities. This comprehensive approach reflects China's commitment to energy security and a green, low-carbon future.