Industrial policy and energy transition in China: Market-Oriented strategies for low-carbon development

China's transition toward low-carbon development has increased the strategic importance of industrial policy in addressing energy security, resource constraints, and technological upgrading. This study examines how China's industrial policy in the new energy vehicle sector has evolved from selective intervention to a more functional, market-oriented approach. Using a qualitative case study design, the research draws on semi-structured interviews with stakeholders from government, industry, and related sectors, supported by secondary evidence from policy documents, industry reports, and academic sources. The findings indicate that functional industrial policy has played an important role in supporting the expansion of charging infrastructure, hydrogen refueling systems, and research and development in core technologies such as batteries and fuel cells. At the same time, the study shows that excessive reliance on direct intervention may weaken market efficiency and limit innovation. The paper argues that a more effective policy framework should combine government guidance with market coordination and third-party oversight to improve policy implementation and long-term sustainability. By linking industrial policy reform with China's energy transition, the study contributes to the discussion on how market-oriented policy design can support low-carbon industrial development.