Energy market in China

Industry highlights


President Xi’s goal to achieve carbon peaking before 2030 and carbon neutrality by 2060.

2707 gigawatts (GW)

By June 2023, China’s total installed power capacity reached 2707GW: coal power 1356GW; hydro 418GW; wind 389 GW; Solar 471GW; nuclear 57GW.

59 gigawatts

By 2022, China’s installed power energy storage capacity reached 59GW.

728 million tons

In 2022, crude oil consumption 728 million tons with a 71.2% import rate; gas consumption 364bcm with a 40.2% import rate.


Renewable energy now accounts for 17.5% and natural gas for 8.6% in China’s energy mix.


Number of hydrogen fuel cell vehicles during 14th five year plan (2021-25), to exceed 1.2 million by 2035.

China’s energy sector is enormous with a total consumption of 5.41 billion ton of standard coal in 2022. Coal still counts for 56% of China’s primary energy mix but the percentage of renewable energy and natural gas is rising.

China has been relying on imported crude oil and gas for many years. Energy security continues to be a focus of China’s 14th Five-Year Plan (2021-25), and domestic production has been increasing every year as the E&P expenditure ramps up.

Key opportunities for Canadian energy companies in China:

  • Energy Products – Canadian energy products are currently being shipped to China, but there is significant growth potential.
  • Shale and unconventional reservoirs – Based on conversations with local players, foreign solutions are being sought in the following areas: experience and expertise related to horizontal drilling and ultra-deep wells, fracking technology, high sealing performance and corrosion resistance for high hydrogen sulfide gas, and chemistry additives.
  • Hydrogen Fuel Cell (HFC)– China is the largest producer and user of hydrogen in the world, and is the world’s largest HFC market.
  • Carbon Capture, Utilization and Storage (CCUS) – It is well acknowledged that CCUS will become indispensable for China to achieve carbon neutrality goals. 
  • Renewable Energy and Energy Storage – The characteristics of China's renewable energy development will be large scale, and market oriented, meaning the dependence on government incentives will be diminished.
  • Environmental protection – In addition to water, air and soil protection, solid waste and hazardous waste treatment will also be a government priority.

Notable challenges for Canadian energy companies in China:

  • Local context - China’s culture and business practices differ from Canada’s. As you start or expand your business in China, understanding Chinese business etiquette and local customs as well as finding a capable and reliable partner are important to your success.
  • Intellectual property - Every firm should implement a strategy to protect their intellectual property rights in China, and this starts with registering IP; patents, trademarks and copyrights.
  • Due diligence - For Canadian companies looking to do business in China, no matter the business model, whether through trading, investment or joint research, the key is to find the right partner. Due diligence is a prerequisite for any transaction with Chinese parties.
  • Travel - A lack of direct and low frequency of flights between Canada and China means higher than normal travel expense and effort, limiting business change efficiency this year.

Upcoming projects and events

  • Responsible Business Conduct Roundtable for Extractive Sector, Beijing, Oct/Nov 2023
  • China International Petroleum and Petrochemical Technology and Equipment Exhibition (CIPPE), Beijing, May 2024
  • China International Environmental Protection Exhibition and Conference (CIEPEC), Beijing, May 2024
  • 29th World Gas Conference (WGC), Beijing, May 19-23, 2025


Energy security, energy transition and how realistic it is to reach net-zero goals continue to be hot topics among the industry players in China.  Foreign products and services that can help local industry reach the dual carbon target have great potential in China. Many Canadian equipment and services companies are already having success in the market, but there is significant potential for growth.

For more information on energy sector in the Chinese market please contact

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