The wind turbine nacelle cover at the energy equipment industrial park of Envision Group, a green technology company based in Yulin, Northwest China’s Shaanxi Province, on December 12 Photo: Chen Tao/GT

Editor's Note:

As the global economy, including China's, faces challenges, Western politicians and media outlets have stepped up their attacks against the world's second largest economy. They selectively highlight information and distort facts to promote narratives including "Peak China," while ignoring China's economic resilience and growth potential. To set the record straight, Global Times is launching a multimedia project featuring in-depth articles, analysis, and info-graphics to provide a balanced and accurate portrayal of the Chinese economy. This is the 21st installment of the series.


In the heart of China's vast northwestern region, the city of Yulin in Shaanxi Province is undergoing an important transformation, driven by green technology innovation. The core of Yulin's industrial upgrading is the integration of high tech with a barrage of sustainable practices taken by the city.

Once a barren desert, Yulin is home to towering manufacturing plants and a network of pipelines that showcase its growth into a pivotal energy hub. The green energy transition in Yulin is set against the backdrop of China's dual carbon goals of peaking carbon emissions before 2030 and achieving carbon neutrality before 2060.

YuLin Chemical Co, a subsidiary of the Shaanxi Coal and Chemical Industry Group Co, acts as a testament to this change. The company has pioneered the conversion of coal into liquid feed-stocks, which are manufactured into a variety of products ranging from bottles and clothing to electronic components and medical devices.

Just a few kilometers away, an industrial park buzzes with activity as workers operate at full capacity to produce polyethylene and polypropylene, materials that will eventually be transformed into a wide array of consumer goods such as strollers, car seats, baby rockers and toys.

In the sprawling industrial park of Guoneng Yulin Chemical, a chemical arm under CHN Energy Investment Group, the Global Times learned about the production process of methanol-to-olefins.

"It is the world's first demonstration project for 50,000 tons per year of poly glycolic acid biodegradable materials, developed with independent intellectual property rights by CHN Energy Investment Group," Yang Xuechao, a technical management engineer said.

Green transition

Guoneng Yulin Chemical is currently innovating to seek a new model for the deep processing of coal in tandem with China's green transition strategy while assisting national energy security, the Global Times learned.

Yulin city is endowed with abundant natural resources like coal, oil, natural gas and salt, making it a major energy hub in China. According to Xinhua News Agency, Yulin contributes 13 percent of the country's raw coal production, 5.2 percent of crude oil, and 10 percent of natural gas. Despite its significant contributions, the city grapples with issues such as inefficient production process, environmental pollution, and low rates of energy utilization.

To address the issues, Yulin has embarked on a course toward a diversified way of low-carbon chemical transformation. The city has made significant strides in the development of coal-to-liquid, low-temperature dry distillation of coal, and coal tar hydrogenation and other green technologies.

"In recent years, Yulin is poised to become a leader in the new energy race. The city's distinct advantages in wind and solar photovoltaic resources, coupled with its commitment to green development, position it to play a pivotal role in China's energy transition," He Gang, a manager at YuLin Chemical Co told the Global Times.

Yulin's coal-to-oil technique has been recognized as a world-first tech innovation, and the local coal-based chemical industry has achieved an 85-percent equipment localization, He Gang said.

And, YuLin Chemical has accelerated the construction of digital platforms, establishing a smart manufacturing demonstration plant and a digital delivery platform. The company leveraged 5G to enhance its production efficiency. Yulin has become a hub for spearheading 5G-guided and managed coal mining. It also leads the rapid development of the fine chemical industry.

Benefiting from abundant resources in wind power, solar photovoltaics, and hydrogen which are essential for advancing the hydrogen energy industry, Yulin has been stepping up efforts to achieve a higher clean energy structural mix.

Hydrogen exploration

Meng Yao, deputy general manager of Shaanxi Huaqin Technology Industry Co, which is mainly engaged in the research and development of special functional materials, told the Global Times that Yulin is leading the way in hydrogen exploration in Shaanxi Province.

"The preference for Yulin in this sector stems from its robust upstream and downstream enterprises, with wind and solar energy serving as the primary sources," Meng said.

China's hydrogen industry is at a critical stage of development, facing a series of challenges that need to be overcome, including the lack of key tech breakthroughs and immature commercial applications.

"By shoring up our industrial chain, we help transform coal into chemical materials such as coal-based specialty fuels and biodegradable materials. This approach reduces carbon dioxide emissions while adds additional value to our products," Meng said.

As Yulin continues to integrate new energy technologies and digital solutions into its enterprises, the city is not only redefining its own development blueprint but also enhancing its role in the country's clean energy market.

For many years, China has actively developed clean energy sources to promote the green transition in its economic and social development. China has phased in the world's largest environmentally friendly green energy supply system. Now, new-energy vehicles, lithium batteries, and photovoltaic products are highly competitive in the international market.

China has established a solid foundation for developing green energy, playing a significant part in driving the global energy transformation and responding to climate change, Xinhua News Agency reported earlier.

In 2023, China's investment in energy transition reached $676 billion, making it the world's largest investor in this field. Over the past decade, China has provided premium clean energy products and services to the international market, according to a white paper titled "China's Energy Transition" released by China's State Council Information Office in August 2024. According to the white paper, the country's installed capacity of clean energy reached more than 1,700 GW in 2023, or 58.2 percent of the country's total installed power generation capacity.