China’s Energy Preparedness Amid Middle East Crisis
As other Asian economies scramble to conserve energy, China benefits from substantial reserves of oil and gas alongside alternative energy sources such as wind and solar power.
Middle East Crisis – Live Updates
President Xi Jinping has been preparing China for a crisis of this magnitude for years. During a 2021 visit to one of China’s extensive oilfields, Xi emphasized the necessity for China to secure its energy supply
“in its own hands”.
The ongoing conflict in the Middle East has plunged the region into turmoil, with the Strait of Hormuz—a critical global trade waterway—effectively closed and key energy infrastructure across the area under attack.
According to maritime tracking consultancy Kpler, oil exports from the Middle East have plummeted by 61% in recent weeks. China, which depended on the region for 59% of its crude imports in 2025, has experienced disruptions but remains comparatively stable.
China’s Energy System and Resilience
Unlike many Asian economies, China’s energy system maintains
“significant buffers”, explained Michal Meidan, head of China energy research at the Oxford Institute for Energy Studies, an independent research body. These buffers include vast reserves of oil and liquefied natural gas (LNG), as well as a strong domestic supply of renewable energy sources such as wind and solar power.
China typically imports about half of its crude oil from the Middle East, a proportion lower than that of other Asian countries.
“While a very high proportion, it is limited when compared to Japan, India or Korea,”Meidan noted. For instance, Japan sources approximately 95% of its oil imports from the region.
Continued Iranian Oil Shipments to China
Despite the war, Iran has continued to supply oil to China, its primary buyer. Kpler data shows China’s imports of Iranian crude have only slightly decreased, from 1.57 million barrels per day in February to 1.47 million barrels per day in March.
Chinese vessels operated by state-owned enterprises are actively navigating the broader region. The Kai Jing supertanker recently diverted to collect Saudi crude at a Red Sea port, according to Chinese media outlet Caixin, and is scheduled to dock in China in early April.
China’s Strategic Oil Reserves
In anticipation of potential supply disruptions, Beijing has quietly accumulated a substantial oil stockpile to mitigate the impact of major shocks. Although the exact size of China’s oil reserves is undisclosed and estimates vary, it is widely believed to hold about 1.4 billion barrels, according to Columbia University’s Center on Global Energy Policy.
Following the outbreak of the war, Beijing instructed domestic refineries to halt exports, prioritizing internal supply security.
Shift Towards Renewable Energy and Reduced Fossil Fuel Dependence
Concurrently, China’s government has been working to reduce economic reliance on fossil fuels. The country now sells more electric and hybrid vehicles annually than the rest of the world combined, according to the International Energy Agency.
China’s renewable energy capacity has expanded rapidly in recent years, significantly reducing dependence on fossil fuels. Energy thinktank Ember reported that wind, solar, and hydropower accounted for approximately 31% of China’s electricity generation in 2024.
Challenges and Risks Ahead
Despite these advantages, prolonged conflict poses increasing challenges. No nation is immune to the economic and supply risks involved.
Meidan cautions that releasing energy stockpiles is
“easier said than done”. The mechanism for China’s strategic petroleum reserve (SPR) has been tested only once.
“While another, larger, SPR release is not impossible, it would likely require a protracted supply shortage and a significant price spike.”
Independent refiners in China, who are the largest importers of Iranian crude, remain vulnerable even as they seek alternatives such as Russian supplies. Additionally, industrial and chemical sectors dependent on LNG face potential price increases and supply shortfalls.
“While a short disruption could be manageable, the prospect of lengthy disruptions and the associated price increases are raising alarm bells in Beijing,”Meidan added.
Outlook
China is better positioned than many countries to handle the economic fallout from the US-Israel war on Iran. However, despite President Xi’s vision, China’s energy supply is not entirely self-reliant.
If the conflict extends for weeks or months and global energy markets remain strained, China’s resilience will be tested alongside the rest of the world.
