China’s leaders pledge to strengthen energy security
China’s top leaders are vowing to strengthen the country’s energy security and respond to “external shocks” by continuing to pursue a policy of rapid technological development and greater control over supply chains to strengthen economic self-sufficiency.
The Politburo, the ruling Communist Party’s top decision-making body, was quoted by state news agency Xinhua on Tuesday as saying the economy was off to a better start than expected in 2026.
The Xinhua statement did not mention the US-Israeli war against Iran, but said: “We must systematically respond to external shocks and challenges, improve energy resources security guarantee levels, and counter various uncertainties with the certainty of high-quality development.”
The phrase “high-quality development” refers to the pursuit of scientific and technological progress with the aim of moving China higher on the value-added ladder.
China’s economy grew 5 percent in the first quarter, topping its target range of 4.5 percent to 5 percent for the full year, and has demonstrated greater resilience than most other economies to the energy and commodity shocks caused by the Iran war.
Analysts say China’s vast oil reserves, heavy use of coal and high adoption of solar, wind and electric vehicles give it a better chance than many European or Asian economies of weathering the closure of the Strait of Hormuz.
But China is not immune to the effects of the conflict.
Rising energy and raw material prices threaten to increase production costs and squeeze already thin margins at factories that employ hundreds of millions of people.
The economic hit taken by other countries may also slow down demand for Chinese exports.
Shipments rose only 2.5 percent in March, a sharp slowdown from 21.8 percent in January-February.
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