China is a clear winner from Trump’s war in Middle East, report concludes
Summary
A report by the Asia Group thinktank says China is the only Asian country that has benefited from the crisis in the Middle East caused by the closure of the Strait of Hormuz. China’s large oil reserves and rapid investments in renewable energy have helped it avoid the worst effects of the global energy shock, while it has also increased its exports in electric vehicles and solar products.Key Facts
- The Strait of Hormuz is a key waterway for global oil and gas, supplying about 80% of oil and 90% of liquefied natural gas to Asia before its closure.
- Iran closed the Strait following joint US-Israel strikes on February 28 that targeted key Iranian sites and killed Iran’s supreme leader, Ali Khamenei.
- The crisis caused global energy prices to rise sharply, affecting many countries in Asia.
- China has large stockpiles of oil, enough to cover about 104 days of imports at 2025 levels, reducing its exposure to the energy crisis.
- China expanded its renewable energy capacity significantly, installing large amounts of solar power in recent years and aiming for half of its energy from non-fossil sources by 2030.
- China increased its exports of electric vehicles by over 110% in May compared to the previous year and solar product shipments by 60% in April.
- The report points out China benefits politically by showing the US as a destabilizing force in the Middle East.
- Despite risks from regional instability, China’s energy and clean tech investments position it well to handle the crisis better than other Asian countries.
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