Abstract <p>The magnitude of carbon emissions poses a remarkable environmental concern in the globe, specifically in China. The release of carbon compounds into the atmosphere, primarily in the form of carbon dioxide (CO₂), contributes to the greenhouse effect, amplifying global warming and climate change. The present article examines the links between energy imports (<i>EI</i>), trade tax (<i>TT</i>), digitalization (<i>DIG</i>), and economic growth (<i>GDP</i>) with CO₂ emissions in China by using time-series data between 1990 and 2021. Based on the nonlinear augmented distributed lag (NARDL) model, the outcomes reveal that digitalization (<i>DIG</i>) and trade tax (TT) both play a significant role in mitigating the severity of CO₂ emissions. At the same time, energy imports (<i>EI</i>) and economic growth (<i>GDP</i>) are detrimental to a sustainable environment. These results highlight the necessity for policies that promote digital transformation and trade regulations as tools for carbon mitigation. Policymakers should prioritize clean energy investments, digital infrastructure expansion, and strategic taxation measures to drive sustainable economic growth while reducing environmental harm.</p> Graphical Abstract <p></p>