economy
China is a clear winner from Trump's war in Middle East, report concludes
Beijing, whose stockpiles and renewables industry allowed it to withstand energy shock, is now gaining from global solar and EV push
TL;DR
- China is identified as the sole winner in Asia from the Strait of Hormuz crisis, according to an Asia Group report.
- The crisis, triggered by Iran virtually closing the strait after US/Israel strikes, has caused soaring global energy prices, with Asia being particularly exposed.
- China's large strategic energy reserves and significant investments in renewable energy have cushioned it from the energy shock.
- The country has seen a surge in electric vehicle and solar shipments due to its dominance in the global clean technology supply chain.
- The crisis allows China to present the United States as a destabilizing actor in the Middle East.
- Potential risks for China include not wanting to become a Middle East hegemon and the complexity of navigating hostile waters, which might influence its stance on Taiwan.