China is rapidly advancing in the hydrogen market, especially in green hydrogen, as part of its transition to a more sustainable economy. With an annual demand exceeding 33 million tons, China has become the largest producer and consumer of hydrogen, essential for various sectors to achieve the country's climate goals. The 'Hydrogen Industry Medium- and Long-Term Development Plan (2021–2035)' outlines the need for significant volumes of hydrogen to power industries such as steel, chemicals, and heavy transport. In a recent development, China overtook Korea in the hydrogen vehicle market, with a notable increase in commercial hydrogen vehicles registered in 2023. The Chinese government has laid out a comprehensive strategy to develop the hydrogen industry, targeting substantial growth in hydrogen fuel cell vehicle sales in the coming years. The potential demand for hydrogen is projected to reach between 100 to 130 million tons in the long term, with a focus on green hydrogen production. The article also delves into the different types of hydrogen, including green, gray, and brown hydrogen, discussing the production methods, environmental impacts, and challenges associated with each. Despite the promising aspects of hydrogen as a clean energy source, obstacles remain in infrastructure development, technology advancement, and sustainability of production methods.