Kathmandu. The US-Israeli invasion of Iran and the conflict that followed have triggered a major energy crisis. Which has seriously affected many countries around the world. Energy prices have skyrocketed due to severe shortages of oil and gas.
However, while some countries are grappling with the crisis, China has remained largely untouched. This is part of a series of preparations over the past few years aimed at bolstering energy and national security while reducing dependence on foreign powers.
1.3 billion barrels of strategic crude oil reserves
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China has been storing large quantities of oil in the last few years. It has 1.3 billion barrels of strategic crude oil reserves. That’s enough for several months.
China has rapidly developed renewable energy capabilities such as solar, wind and hydropower, aiming to promote a full green energy in the future. Demand for refined oil, diesel and petrol has declined for two consecutive years due to China’s efforts. This has reduced the country’s dependence on oil imports. Experts believe that China’s oil and gas demand may have reached a peak.
In addition, China dominates the mining and processing of many critical minerals. It has now become a major producer of electric vehicles (E.Vs) and batteries.
Worldwide Supply Chain Grip Persists
China is also rapidly expanding its industrial sector to strengthen its grip on global supply chains, preparing its energy sector to withstand any potential shocks. The move comes as a major blow to China’s economy over the past year in the wake of heavy tariffs imposed by US President Donald Trump. Under these circumstances, China has made rapid progress towards self-sufficiency in the past few years.
The blockage of the Strait of Hormuz, a key gateway between Asia and Europe, has disrupted the supply of oil and NLG. Even in these difficult times, China has demonstrated more resilience than many other countries in managing its energy needs.
As a result of China’s progress in its energy sector over the past few years, it can now use electricity to power many of its cars and trains. This has helped reduce dependence on oil.
How is China providing a solution?
Many other Asian countries, such as Vietnam and the Philippines, are facing severe oil and fuel shortages due to the ongoing conflict in the Middle East. This is a problem that China is trying to address.
Coal use increased
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China has used coal as a temporary measure to reduce its dependence on oil imports, despite pledging to reduce its reliance on coal as part of its green transition goals. The Chinese government, for example, has increased the use of coal to produce petrochemicals to provide an alternative to its dependence on oil imports.
The government’s use of coal for chemical production increased from 155 million tonnes in 2020 to 276 million tonnes in 2024. China aims to eventually transition away from fossil fuels and toward renewable alternatives. But for now, the continued use of coal is helping China become more self-reliant and develop its industries. –Agency
