Hydrogen is gaining importance in the global energy transition, with China emerging as a key player in this sector. While China has ambitious hydrogen development plans, its regulatory landscape for hydrogen remains under-researched compared to other major economies. This article critically examines China's regulatory approach to hydrogen, focusing on hydrogen refuelling stations and fuel cell vehicles. Local governments in China have taken the lead in developing the hydrogen industry, making significant progress despite limited central regulatory action. However, this local initiative has also led to market fragmentation and protectionism. The study emphasizes the need for central coordination to prevent adverse effects on the industry. By analyzing both national and local policies, the article highlights the importance of harmonizing regulations to support the sustainable growth of China's hydrogen sector. It underlines the significance of combining local experimentation with international best practices to inform future national hydrogen regulations and foster a cohesive regulatory framework.