Why China can withstand oil’s surge past $100 more easily than other countries
China’s strategic crude oil reserves and renewable energy sources are expected to mitigate the impact of surging oil prices following the Iran war. With large stockpiles and a shift towards electric vehicles, China is less sensitive to the closure of the Strait of Hormuz than other Asian countries. By diversifying energy sources and increasing the share of non-fossil fuels, China aims to reduce its dependence on imported oil. The transition towards renewables is decreasing China’s sensitivity to oil price fluctuations, with renewables accounting for a growing share of the country’s total energy consumption. Despite challenges, China’s efforts towards decarbonization and building crude reserves are ongoing. (CNBC): China’s crude imports hit a record high of around 580 million metric tons amidst escalating Middle East tensions. Analysts suggest China is materially exposed but remains flexible in the face of these challenges.
