China Gains Edge in Hormuz Crisis as Reserves and Clean Energy Blunt Inflation
Updated
Updated · The New York Times · Jun 29
China Gains Edge in Hormuz Crisis as Reserves and Clean Energy Blunt Inflation
3 articles · Updated · The New York Times · Jun 29
Summary
China has avoided the inflation spike and broader economic fallout hitting many countries after war in Iran effectively closed the Strait of Hormuz, emerging as a relative winner from the disruption.
The Asia Group said Monday that China’s oil and gas reserves, clean-energy supply and state management of prices, exports, subsidies and the currency helped absorb the shock.
That resilience is reinforcing China’s appeal as a manufacturing base even as higher energy, fertilizer and chemical costs push other economies and industries into distress.
The disruption has also let Beijing cast itself as a more stable partner and may speed global demand for solar panels, batteries and electric vehicles—sectors China already dominates.