US-China rivalry in the shadow of the oil crisis

The global economy is once again being tested through energy supply and demand security.

The war and tension in the Gulf region increase risks in the Strait of Hormuz, which is a hub for energy transfers, causing a new wave of shock in oil markets.

Today, the Strait of Hormuz, through which about one-fifth of the world's oil and natural gas passes, is not only a transit point for oil and natural gas but also a determinant of global economic stability.

The continuation of the current uncertainty in the Gulf region and the prolongation of this process cause energy supply to contract and energy prices to move rapidly upward.

This situation in energy brings shocks such as the 1973 and 1979 oil crises back onto the agenda.

ENERGY CRISIS AND THE US'S STRATEGIC GOALS

China, which has a high dependence on energy and is the world's largest oil importer, is highly sensitive to rising energy prices.

The US's intervention in the countries and regions from which China imports energy makes it difficult for China to access energy.

Previously, through its intervention in Venezuela, which is China's largest importer of oil, the US achieved many of its goals by blocking China's access to Venezuelan crude oil.

Now, the US is obstructing energy supply security in the Strait of Hormuz, from which China secures nearly 50 percent of its energy supply security.

Due to this tension, the reduction in oil supply and the sharp rise in prices increase China's production costs, causing it to experience problems in global supply chains.

China, whose energy supply security is threatened, will lose its competitiveness in industrial production, lose its momentum in technology, and slow down its economic growth.

In short, the US is making energy costs unsustainable in order to prevent China from rising to the top spot in the global economy.

This strategy will prevent the existing GDP gap between the US ($30 trillion) and China ($20 trillion) from closing, and will allow the US to maintain its dominance in the economy and energy.

On the other hand, by keeping China busy with an energy crisis, the US will also achieve its goal of blocking the Petro-Yuan move that China has set as a strategic target, and maintaining dollar dominance in oil markets.