Xi calls for faster shift to new energy system amid war
China’s President Xi Jinping has urged an accelerated transition to a diversified and low-carbon energy system as Middle East tensions threaten global supply chains. Highlighting hydropower, nuclear energy, and renewables, Xi stressed energy security and resilience while maintaining coal’s supporting role in the country’s power mix.
China’s President Xi Jinping has called for speeding up the development of a new energy system as escalating conflict in the Middle East disrupts global energy flows and raises concerns over supply security. Speaking on Monday, Xi underlined the need for a more resilient and diversified energy structure to support China’s long-term economic growth.
Energy diversification strategy
According to state broadcaster CCTV, Xi pointed to hydropower expansion, environmental protection, and the controlled growth of nuclear energy as central pillars of China’s strategy. He noted that earlier investments in wind and solar power have proven effective, while emphasizing that coal will remain a stabilizing component of the national energy system.
Balancing coal and clean energy
Xi reiterated Beijing’s commitment to a cleaner, low-carbon development path, while acknowledging the continued importance of coal-fired power in ensuring grid stability. China’s current energy mix includes nuclear, solar, and wind sources, alongside significant reliance on domestically produced coal, reflecting a transitional approach to energy reform.
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Strategic reserves and regional risks
China maintains a strategic crude oil reserve estimated at 1.3 billion barrels, sufficient to cover several months of demand. However, rising geopolitical tensions—particularly following the US-Israel offensive on Iran on Feb. 28—have heightened risks in critical supply routes such as the Strait of Hormuz, a key chokepoint for global oil shipments.
Middle East tensions and global impact
The ongoing conflict has led to retaliatory strikes by Tehran targeting multiple countries in the region and disruptions to maritime traffic. China, which sourced around 35% of its energy imports from Gulf nations in 2024 at a cost of $413 billion, faces growing exposure to these risks. Recent reports also indicate that Chinese vessels have continued transiting the Strait of Hormuz despite the heightened security concerns.
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