China's Coal-to-Chemicals Industry: Scale, Strategy, and Climate Impact

China is aggressively expanding its coal-to-chemicals sector to reduce reliance on imported oil. By converting coal into methanol, olefins, and synthetic fuels, the country is building an industrial insurance policy to protect its manufacturing base from global energy price shocks. While this strategy enhances energy security, the massive scale of coal consumption for chemical production creates significant challenges for China's long-term climate goals. The shift toward coal-derived feedstocks increases domestic carbon intensity even as the country expands its renewable energy capacity.