This chapter explores China’s complex and evolving energy transition, emphasizing the critical role of technological innovation, digitalization, and sectoral transformation in achieving the country’s dual-carbon goals: peaking carbon dioxide emissions before 2030 and reaching carbon neutrality by 2060. It analyzes how advances in renewable energy, electrification, smart grids, and hydrogen—alongside digital tools such as intelligent power systems and virtual power plants—are reshaping China’s energy landscape. These developments are especially pronounced in key sectors like power and heavy industry, where electrification, energy efficiency, and low-carbon innovation are becoming increasingly integrated. Despite continued reliance on coal and mounting geopolitical and economic pressures, China has maintained a dual-track approach—balancing short-term energy security with long-term decarbonization. This strategy is reflected in pragmatic policy shifts, such as support for flexible coal technologies and energy system resilience, paired with bold investments in renewables, clean hydrogen, and grid modernization. The chapter underscores the need for coherent governance frameworks, sector-specific reforms, and strong coordination among government, industry, and finance to reduce industrial overcapacity, scale up clean technologies, and ensure a just transition. China’s transition efforts are not only domestic in focus but also globally consequential. As the world’s largest energy consumer and emitter, China plays a central role in global climate governance. The chapter highlights the importance of international collaboration—through technology exchange, clean energy partnerships, and global policy dialogue—as a means to accelerate innovation and bridge implementation gaps. Ultimately, it concludes that China’s energy transition, while challenged by internal and external headwinds, remains a pragmatic yet forward-looking endeavor. By strategically leveraging innovation, aligning policy and industrial modernization, and engaging globally, China is forging a low-carbon development path that balances economic growth with climate responsibility.