Balancing growth and decarbonization: Political economy dynamics in China's 2060 carbon neutrality strategy

China's pledge to achieve carbon neutrality by 2060 necessitates a fundamental transformation of its energy system; yet coal remains the dominant energy source. This paper investigates the political economy of China's energy transition, focusing on institutional and technical constraints. Drawing on policy analysis, relevant literature, and qualitative interviews with nine energy experts, the study identifies structural barriers that hinder the shift toward clean energy. Institutional challenges include fragmented governance, insufficient financing mechanisms, and a lack of cross-sectoral coordination. Technical challenges arise from the difficulty of reducing energy intensity, decarbonizing power generation, cutting emissions in transportation and industry, and scaling carbon capture technologies. Findings suggest that energy security and economic growth continue to outweigh decarbonization in China's policy priorities. To realign its energy strategy with carbon neutrality, China must adopt binding policies, reduce fossil fuel subsidies, foster renewable investment, and enhance efficiency across sectors. This research contributes to the literature by situating China's case within comparative political economy debates and offering insights into the conditions under which developing economies can reconcile growth with decarbonization. • Applies a political economy framework to China’s 2060 carbon neutrality pledge • Finds economic growth and energy security outweigh decarbonization in policy priorities • Identifies institutional barriers: fragmented governance, weak finance, limited coordination • Examines technical hurdles in decarbonizing power, transport, and industry, plus CCUS scaling • Analyzes SOEs’ influence in sustaining fossil fuel dependence and slowing clean transition.