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Abstract Since the 21st century, the world energy system has witnessed two important changes. Unconventional oil and gas revolution, represented by the exploitation of shale oil and gas, alleviates the supply-demand relationship in the energy market, and increases the diversity of oil and gas supply. In the meanwhile, driven by policy guidance and technological progress, the renewable energy industry has also developed steadily, and begins to replace traditional fossil energy. From the perspective of energy substitution, there are competitiveness and contradictions between the two changes. However, from a broader perspective such as the political economy of energy, with more realistic factors into consideration, the two changes are complementary and unified. The dual change of the international energy system has profound impacts on the energy strategies of various countries. Among them, the US decides to restore support for traditional energy, while Germany still insists on promoting the development of renewable energy industries. In the background that the high-carbon energy structure will continue and the energy peak has not yet arrived, the guiding principle of China’s energy transition should focus on the protection of energy security, taking into account environmental protection. At the implementation level, China should pay attention that the energy transition strategy should be comprehensive and forward-looking, and the continuity of policy formulation and execution should be highlighted. Furthermore, China should promote the upgrade of energy diplomacy, strengthen the energy institutional power, and export energy exploitation capability, with the aim to become an important leader in the international energy transition.
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