With rapid industrialization, urbanization and growth since the 1990s, China has become the world’s largest producer and consumer of energy, and the largest emitter of greenhouse gases (GHGs). These GHG emissions contribute to climate change, as well as severe air pollution that causes health problems around the country.  With the rapid growth in China’s auto market, transportation sector has taken account of 10 to 15 percent of the overall energy consumption in China. New energy vehicles like Fuel Cell Vehicle (FCVs) that powered by renewable hydrogen and emit nothing but water provides a solution to reduce the GHGs. This issue brief discusses the opportunities, challenges and the way forward for the FCVs development in China.