The regions of Inner Mongolia and Ningxia in China are at the forefront of green hydrogen development, utilizing their rich renewable energy sources to produce carbon-free fuel. Inner Mongolia, with its vast wind and solar resources, has become a leader in green hydrogen production, annually producing 60,000 metric tons. The region has introduced 14 policies to support the hydrogen industry and is integrating green hydrogen into various sectors like transportation and metal smelting. Ningxia is also making strides with a production capacity of 26,600 metric tons from renewable energy projects. Efforts in Ningxia include deploying hydrogen-powered vehicles and integrating hydrogen into natural gas consumption. However, challenges such as the lack of technical guidelines, safety standards, and high production costs hinder the industry's growth. Both regions aim to create leading green hydrogen industry zones and promote a low-carbon transition. Despite progress, the high costs of hydrogen production and the need for infrastructure development pose challenges. The government emphasizes the importance of reducing costs and improving integration across the hydrogen value chain to facilitate industrial-scale development and wider market adoption.