economy
March 9, 2026
Why China can withstand oil's surge past $100 more easily than other countries
The latest Middle East tensions sheds light on how the world's three largest oil consumers have taken different approaches to energy, with global consequences.
TL;DR
- China has accumulated one of the world's largest strategic and commercial crude reserves, estimated at 1.2 billion barrels (3-4 months of reserves).
- The country is rapidly transitioning toward electric vehicles and renewable energy, reducing dependence on oil.
- China relies on the Strait of Hormuz for only 40-50% of its seaborne oil imports, down from previous years.
- Oil shipments through the Strait of Hormuz account for only 6.6% of China's overall energy consumption.
- Renewables accounted for 1.2% of China's total energy consumption in 2023, a significant increase from two decades prior.
- More than half of China's new passenger vehicles sold are now new-energy vehicles.
- Oil and natural gas account for only 4% of China's power mix, significantly lower than many other Asian economies.
- Despite efforts to reduce emissions, coal remains a significant energy source in China.
- China's crude oil imports dropped by nearly 2% in 2024, but climbed 4.6% in the previous year amid Middle East tensions.
- India is more dependent on petroleum imports than China and the U.S.
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