The Chinese government has enacted policies to promote alternative vehicle fuels (AVFs) and alternative fuel vehicles (AFVs), including city bus fleets. The life cycle (LC), energy savings (ES) and GHG reduction (GR) profiles of AVFs/AFVs are critical to those policy decisions. The well-to-wheels module of the Tsinghua-CA3EM model is employed to investigate actual performance data. Compared with conventional buses, AFVs offer differences in performance in terms of both ES and GR. Only half of the AFVs analyzed demonstrate dual benefits. However, all non-oil/gas pathways can substitute oil/gas with coal. Current policies seek to promote technology improvements and market creation initiatives within the guiding framework of national-level diversification and district-level uniformity. Combined with their actual LC behavior and in keeping with near- and long-term strategies, integrated policies should seek to (1) apply hybrid electric technology to diesel buses; (2) encourage NG/LPG buses in gas-abundant cities; (3) promote commercialize electric buses or plug-in capable vehicles through battery technology innovation; (4) support fuel cell buses and hydrogen technology RD and (5) conduct further research on boosting vehicle fuel efficiency, applying low-carbon transportation technologies, and addressing all resultant implications of coal-based transportation solutions to human health and natural resources.