Overview
- Xi Jinping, in remarks carried by CCTV on Monday, urged faster planning and construction of a “new energy” system, backing hydropower growth, safe nuclear expansion and coal’s role as the grid’s foundation.
- Analysts note China is less exposed to the Strait of Hormuz disruption because coal supplies more than half of its energy, oil stockpiles are large, and flows through Hormuz make up about 5% of total energy use.
- Years of subsidies for electric cars and record renewable buildouts have cut demand for petrol and diesel for two straight years, which eases the hit from higher crude prices.
- China expanded coal-to-chemicals output, using domestic coal to make methanol and ammonia, which reduced reliance on oil-based imports and kept key products such as fertilizer cheaper at home even as global urea prices jumped.
- China’s tight grip on solar, battery and EV supply chains is now a commercial and diplomatic asset, with reporting highlighting rising green-tech exports and cases like Pakistan’s solar surge and Nepal’s widespread EV use helping those economies ride out the shock.