China has emerged as the primary economic beneficiary in Asia following the closure of the Strait of Hormuz, according to a report from the Asia Group thinktank. While the Middle Eastern maritime crisis—triggered by joint US-Israel strikes on February 28—sent global energy prices surging, China’s substantial strategic petroleum reserves and aggressive expansion into renewable energy infrastructure have insulated it from the worst of the volatility compared to regional peers.
How China Mitigated the Energy Shock
Beijing’s focus on energy independence provided a buffer against the supply disruptions caused by the virtual closure of the Strait of Hormuz. According to analysis by Erica Downs, a senior research scholar at the Centre on Global Energy Policy, China increased its crude oil imports from 11.1m barrels a day in 2025 to 11.6m, with over 80% of that growth directed into stockpiles. As of January, China held enough reserves to cover 104 days of imports.
Beyond fossil fuels, China has aggressively scaled its renewable sector. The country installed 315GW of new solar capacity in 2025, following a 277GW increase the previous year. The Asia Group report notes that China currently has 1.4 terawatts of renewable capacity online, allowing the nation to weather the initial crisis more effectively than neighbors like Japan, India, or South Korea, which remain more heavily dependent on volatile energy imports.
China aims for 50% of its total energy consumption to come from non-fossil sources by 2030, with wind and solar projected to account for 30% of the energy mix.
Geopolitical Consequences of the Strait Closure
The crisis has provided Beijing with a diplomatic platform to frame the United States as a destabilizing force in the Middle East. While Beijing has officially called for a ceasefire, the Asia Group report suggests the situation allows China to highlight the economic costs of US military entanglements to the rest of the world.
However, analysts warn that this advantage comes with its own set of risks. Drew Thompson, a senior fellow at the S Rajaratnam School of International Studies in Singapore, stated that Beijing does not necessarily seek to replace Washington as the regional security hegemon. Furthermore, Wen-Ti Sung, a non-resident fellow with the Atlantic Council’s Global China Hub, noted that the crisis may influence Beijing’s future military calculations regarding Taiwan, as it demonstrates the logistical complexities of operating in and around hostile maritime territories.
Exporting Clean Technology During the Crisis
As other nations scramble to secure energy, China has leveraged its dominance in the clean energy supply chain to increase its global market share. Beijing has been pushing production of solar and electric vehicle (EV) technology overseas at competitive prices.
- EV Exports: Rose by more than 110% in May compared to the previous year.
- Solar Shipments: Increased by 60% in April.
This strategy has drawn scrutiny from Western leaders concerned about the impact on their own domestic manufacturing sectors, but it has solidified China’s position as a critical provider of the infrastructure needed for the global transition away from oil.
Frequently Asked Questions
Why was China less affected by the Strait of Hormuz closure?
According to the Asia Group, China’s resilience is due to its massive strategic oil reserves—covering approximately 104 days of imports—and its significant investment in renewable energy, which reduces its overall reliance on imported energy.
How does the crisis impact China’s view of Taiwan?
Wen-Ti Sung of the Atlantic Council suggests that the logistical difficulties observed during the Strait of Hormuz crisis may cause Beijing to rethink the risks associated with a potential military assault on Taiwan.
What is China’s current energy mix?
While coal still accounts for more than 50% of China’s energy consumption, renewables are growing rapidly. Beijing is targeting a 30% share from wind and solar by 2030, up from 22% in 2025.
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