China could end crude oil imports within 20 years as it accelerates renewable energy expansion, AI-driven power grids, and energy storage, strengthening energy security.
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| China plans to eliminate crude oil imports by 2045 through rapid renewable energy expansion, AI-powered grids, and energy storage, reshaping its economic future. Image: ChicHue |
Beijing, China – March 9, 2025:
China could eliminate crude oil imports within two decades as it accelerates the expansion of renewable energy, artificial intelligence-driven power grids, and energy storage, a National People’s Congress (NPC) deputy has forecast.
Liu Hanyuan, chairman of the Tongwei Group and a deputy at the NPC, said China’s energy transformation would require scaling up solar and other renewables while modernizing its power grid with AI to manage fluctuating energy supplies. His remarks, made in Beijing ahead of the country’s annual “two sessions” congress meeting, highlight China’s long-term strategy to reduce dependence on foreign energy and enhance national security.
China is the world’s largest crude oil importer, relying heavily on suppliers like Russia and Saudi Arabia. In 2024, the country imported 553 million tonnes of crude oil, costing $325 billion in foreign exchange reserves. Liu believes China has the capability to replace its annual crude consumption—more than 500 million tonnes—through renewable sources within 20 years.
Liu, whose company Tongwei Solar is the world’s largest solar cell manufacturer, emphasized the need for massive investment in renewable energy and supporting infrastructure. He estimated that China’s transition would require an annual investment of ¥10-20 trillion ($1.4-2.8 trillion). This shift could help China achieve carbon neutrality five to ten years ahead of its 2060 target, drive economic growth, and strengthen its global position in green energy.
Solar power is already a major player in China’s energy mix. With over 886 gigawatts installed by 2024—nearly half the world’s total—solar is expected to surpass all other energy sources in China within the next two years. However, to meet domestic and global climate goals, Liu said China must add 500-700 gigawatts of photovoltaic capacity annually.
Beyond solar, Liu urged China to accelerate the development of other renewables and enhance its power grid. He noted that China's grid has historically prioritized power generation over transmission, leading to inefficiencies in renewable energy distribution. The government has acknowledged this challenge, with the National Energy Administration reporting that energy storage capacity reached 74 gigawatts by the end of 2024.
Liu also emphasized China’s dominant position in new energy manufacturing. By late 2024, the country accounted for 85% of global photovoltaic production, 79.8% of lithium-ion batteries, and 70.4% of new energy vehicles. He called on the government to streamline trade regulations and customs procedures while encouraging investments in Belt and Road Initiative countries to expand China’s green energy influence.
For a successful transition, Liu recommended the rapid construction of ultra-high-voltage power lines and integrated energy systems combining power supply, grid management, energy storage, and electric vehicles. AI-powered solutions, he added, could play a crucial role in optimizing energy distribution and grid stability.
As China moves toward energy independence, its renewable energy push is expected to reshape the global energy landscape, reducing reliance on fossil fuels and reinforcing its leadership in clean technology innovation.