appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Frank Chen

Beijing is putting its power strategy under the microscope as China navigates the impact of a shipping crisis in the Strait of Hormuz that risks becoming a long-term economic liability.
Calling energy security a pillar of national stability, Premier Li Qiang on Monday convened a high-level study session of the State Council, China’s Cabinet, according to Xinhua.
The meeting, focused on coordinating energy security and the sector’s transformation, was the latest in a series of policy discussions and re-evaluations by policymakers. Also in attendance were China’s top-ranked vice-premier, Ding Xuexiang, and Li’s other deputies.
Alluding to volatility in global oil and energy prices since the start of the US-Israeli war on Iran, Li stressed vigilance.
“Given upheavals in the international situation and the steady growth of China’s energy demand, we must maintain vigilance and a bottom-line mentality to enhance resilience and secure supplies,” Li argued.
First-quarter data shows China’s economy was largely spared from the Iran conflict and disruption in the Hormuz since February, as gross domestic product increased a robust 5 per cent across the three months, year on year.
Economic resilience has been buttressed by China’s decision to stockpile oil before the war, helping offset some of the blow to businesses and livelihoods. But China’s dependence on oil imports – including shipments via the Hormuz – is seen as a strategic vulnerability as Beijing endeavours to bolster economic and energy security. The country imports about 70 per cent of its oil needs.


On Monday, President Xi Jinping said in a call with Crown Prince Mohammed bin Salman of Saudi Arabia that the strait should remain open. It was the first time the Chinese leader had openly called for the reopening of the blocked waterway that has snarled global shipping, energy flows and supply chains.
Meanwhile, in a hint of Beijing’s push to lessen dependence on imports, Li said at the study session that the key lies in optimising the energy structure and leveraging new energy.
“We shall further promote the green, low-carbon transformation of energy production and consumption, including tapping the potential of renewable energy such as wind power, photovoltaic power, hydropower and other new-energy sources,” Li said.
In a tacit admission that China cannot immediately wean itself off coal – one of China’s most abundant resources – Li noted the need for clean, efficient utilisation of fossil energy and upgrading coal-fired power plants as a supply backstop. He also stressed the role of artificial intelligence in the transformation, and he pointed to ongoing programmes to modernise grids.
Li also promised that suppliers and users of green energy will be rewarded via the reform of the national electricity market.
China has been in the vanguard of popularising clean and green energy, even though it remains the world’s largest emitter of greenhouse gases. Juggling energy security and transformation, China aims to peak carbon emissions by 2030 and reach carbon neutrality by 2060.
Also on Monday, Zheng Shanjie, head of the National Development and Reform Commission, the top economic planner, vowed in a People’s Daily article to reinforce China’s strategic reserves and response capabilities.
“We shall enhance the security and supply of food and energy, with priorities including mineral exploration and increased oil and gas reserves,” Zheng said, adding that China should “expand oil and gas cooperation with Russia”.


China boosts crude oil, LNG imports from Canada as Ottawa-Washington relations sour

China’s crude imports are rising again. What will that mean for oil prices?

Fed rate hike risks worsening China’s economic divide

How Canada’s Trump headache is fuelling a China trade boom

China energy security

China confronts Middle East supply shock, as State Council mulls energy strategy

Premier Li Qiang presides over a State Council group study session on energy development on Monday. Photo Xinhua

China’s trade with Iran, Gulf states plunges as Strait of Hormuz crisis hits energy flows

The sun rises behind tankers anchored in the Strait of Hormuz off the coast of Qeshm, an island in Iran, on April 18. Photo: AP

‘Hormuz moment’ could herald decline of US dominance: Citic Securities analysts

Tankers anchored in the Strait of Hormuz off the coast of Qeshm Island, Iran, on Saturday. Photo: AP

Iraqi oil tankers queue up along the Tartus-Latakia Highway on Sunday as Iraq exports oil through Syria as a result of the closure of the Strait of Hormuz. Photo: DPA

Trump, Iran and the Strait of Hormuz: here’s what happened overnight

US President Donald Trump says he won’t lift the blockade of the Strait of Hormuz until there is a deal with Iran. Photo: TNS

Iranian parliamentary speaker Mohammad Bagher Ghalibaf says Tehran doesn’t accept negotiations “under the shadow of threats”. Photo: Hassan Ibrahim/Lebanese Parliament/dpa

China’s Xi Jinping says Strait of Hormuz should be open in call with Saudi crown prince

Chinese President Xi Jinping spoke to the Saudi crown prince on Monday. Photo: Reuters

Iran, US say Strait of Hormuz is fully open to commercial vessels

A drone view shows the Malta-flagged tanker Agios Fanourios I, an oil tanker that sailed through the Strait of Hormuz, arriving in Iraq’s territorial waters off Basra, Iraq, on Friday. Photo: Reuters

US President Donald Trump said the US naval blockade would remain in full force for all Iranian vessels and supplies for now. Photo: TNS

Economy

China Economy

Global Economy

News

Economy, Trade & Business

China

China Future Tech

Premier Li Qiang urges ‘bottom-line mentality’ to secure power as Beijing sees coal and Russian gas among options to offset reliance on imported crude


Premier Li Qiang urges ‘bottom-line mentality’ to secure power as Beijing sees coal and Russian gas among options to offset reliance on imported crude.


China confronts Middle East supply shock, as State Council mulls energy strategy

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Premier Li Qiang urges ‘bottom-line mentality’ to secure power as Beijing sees coal and Russian gas among options to offset reliance on imported crude

Premier Li Qiang urges ‘bottom-line mentality’ to secure power as Beijing sees coal and Russian gas among options to offset reliance on imported crude