China has launched a major hydrogen programme targeting the decarbonisation of its steel industry, backed by up to one point one seven billion US dollars over four years. Baowu Steel, the world's largest steelmaker, has already commissioned a one million metric ton hydrogen-electric arc furnace line and plans an additional one point six four billion dollar hydrogen hub. Coal still powers around ninety percent of Chinese steel production. Experts say the programme is a vital catalyst, but full commercial transition depends on cutting hydrogen costs and growing demand for low-carbon steel.