In recent years, energy independence and low-carbon transitions have become key global concerns, and countries in the European Union, particularly Germany, are advocating for the development of E–Fuels in the transportation sector. This paper provides a comprehensive review of the concept, properties, and production process of E–Fuels, while analyzing their lifecycle emissions and production costs. The paper highlights the significant role that E–Fuels play in the EU's energy transition by enhancing energy independence, supporting the existing automotive industry, stabilizing the economic foundation, and participating in carbon market trading. However, challenges such as high production costs and low efficiency are also identified. Additionally, the paper outlines the current development status of the E–Fuels industry in the EU, examines the proactive efforts made by non-governmental industry alliances, and discusses the EU's official neutral stance on E–Fuels. It further explores the potential pathway for the integration of E–Fuels with hybrid vehicles. Finally, the paper looks ahead to the opportunities for E–Fuels in China, offering recommendations for innovation–driven development, tailored strategies, and adoption of a flexible and inclusive approach to technological advancement, with the aim of supporting China's energy transition.