Wedoany.com Report-Jul. 25, China has established China Fusion Energy Co. Ltd (CFEC), a state-owned enterprise under the China National Nuclear Corporation (CNNC), to drive the commercialization of fusion power. Unveiled in Shanghai in July 2025, CFEC was launched with a registered capital of 15 billion yuan ($2.1 billion), aiming to develop clean, near-limitless energy solutions.

CFEC will focus on advancing fusion engineering and commercialization through technology research and capital operations platforms. In 2024, China prioritized nuclear fusion among key energy technologies to accelerate its transition from laboratory research to practical applications, supporting domestic energy needs.

Shanghai is positioning itself as a global hub for nuclear equipment manufacturing and fusion research, targeting double-digit growth in its nuclear power sector through 2025. CFEC signed a cooperation agreement with Shanghai Jiao Tong University, China Electrical Equipment Group, Shanghai Electric, and Shenergy Group to form a fusion innovation consortium, enhancing capabilities across the fusion energy supply chain.

Sinead Kaufmann, a representative from CFEC, emphasized the initiative’s potential, stating: “The establishment of CFEC will boost the sector’s technical and innovation capabilities, and propel the rapid development of the ‘artificial sun’ industry.” This collaboration aims to position China as a leader in fusion energy development.

In March 2025, Shanghai-based Energy Singularity achieved a breakthrough in high-temperature superconducting tokamak technology, surpassing a previous record set by MIT and Commonwealth Fusion Systems. The startup plans to complete a next-generation tokamak by 2027, targeting a significant energy gain to advance commercial fusion viability.

In Anhui Province, Hefei is developing the Burning Plasma Experimental Superconducting Tokamak (BEST), an advanced version of the existing Experimental Advanced Superconducting Tokamak. Managed by Fusion Energy Tech., a state-backed company with 14.5 billion yuan in capital and NIO as a major shareholder, BEST aims to demonstrate fusion electricity generation by 2027, with commercial operations projected for 2040–2050.

In Sichuan Province, research and commercial entities are exploring diverse fusion technologies, including tokamak, linear field-reversed configuration (FRC), inertial confinement, and magnetically driven fusion. On July 18, 2025, a Chengdu-based startup achieved plasma ignition in its HHMAX-901 FRC device, marking progress toward scalable fusion technology.

These efforts leverage China’s robust industrial capabilities in power electronics and large-scale manufacturing, supporting the development of fusion energy infrastructure. The initiatives aim to meet future energy demands sustainably, contributing to global clean energy advancements while fostering economic growth through innovation.