China has emerged as the main beneficiary of the Strait of Hormuz closure, according to Washington D.C.-based strategic advisory firm The Asia Group.
In a report published this week, it said the stoppage of crude oil and other commodities from the Middle East has unevenly impacted economies in Asia, which relies heavily on imports for its fuel.
But China’s ability to diversify its energy supply and tap into emergency reserves has given it strategic advantages in an otherwise widely disruptive crisis, The Asia Group said.
China has helped cushion the global oil shock, seen its clean energy tech exports surge and framed the war in Iran as another example in which Chinese leadership could supersede the US in ending global conflicts.
If the energy shortages persist, China may still suffer further from higher material prices and a broader global economic slowdown, which would hit demand for Chinese exports at a time when the economy has become increasingly reliant on them to maintain growth.
Still, The Asia Group argues that China is well-positioned to weather further macroeconomic volatility.
