Several countries in Asia, such as Japan and South Korea, have significant exposure to the global oil and gas market due to their dependence on energy exports from the Middle East. However, for China, its long-term energy security strategy provides it with insulation.
A Brief Explainer on the Energy Security Strategy of China in Consideration of Energy Shocks from Oil and Gas Disruptions Originating in the Middle East
China has exposure to Middle East energy exports. But years of policies and actions have allowed it to create a diverse and redundant energy mix, a massive oil stockpile, and a strong supply of oil and gas from strategic alliances.
Redundancy in Energy Mix
The combined efforts of the United States and Israel to attack Iran have resulted in a severe global disruption in the oil and gas trade. Middle East exports have plummeted to 61 percent. Oil price even went above 100 U.S. dollars per barrel in the third week of March 2026.
But China remains confident while Asian countries race to conserve energy. Michal Median, Head of China Energy Research at the Oxford Institute for Energy Studies, noted that the country is still dependent on energy from the Middle East, but it has several buffers.
The energy security of China focuses on all-of-the-above energy sourcing that involves importing fossil fuels, domestic fossil fuel production, oil and gas stockpiling, and rapid renewables deployment. This creates a degree of redundancy in its energy markets.
Data from the International Energy Agency show that the energy mix of the country includes 61 percent coal and coal products, 18 percent oil, 7.9 percent natural gas, around 4 percent renewable energy sources, 3.2 percent biofuels and waste, and 2.8 percent nuclear power.
Note that China does not disclose the size of its oil stockpile. Estimates can differ. But the Center on Global Energy Policy at Columbia University suggests that the country is sitting on a massive oil stockpile of about 1.4 billion barrels that can last 100 to 130 days.
Alliance with Russia and Iran
Another interesting aspect of the energy security strategy of China is its foreign policy and trade agreements. It has strategic partnerships with Iran and Russia. Russia accounts for about 17 percent of its total oil imports, and remains its top natural gas supplier.
Some of Russian oil goes to China via maritime routes, but a significant portion of it goes through the Eastern Siberia-Pacific Ocean or ESPO oil pipeline that runs from oil fields in Siberia to Asia-Pacific markets. Gas is transported via the Power of Siberia pipeline.
Iran is a vital but unofficial partner due to sanctions. China does not report its energy imports from Iran in official customs data and publications. However, despite the absence of official paperwork, Iran accounts for about 12 to 13 percent of its total oil imports.
The US-Israel war with Iran has compelled China to lean more toward the pipelines in Russia to stabilize its oil and gas supplies. But it is worth mentioning that Iran still exports to China since it has significant control and leverage over the Strait of Hormuz.
Moreover, even before the war-caused disruption, remember that China has unaccounted trade relations with Iran. It has been using ghost fleet to move oil via the maritime route. It is also worth mentioning that Iran considers China as its primary oil customer.
FURTHER READINGS AND REFERENCES
- Downs, E. 29 January 2026. “Where China Gets Its Oil: Crude Imports in 2025 Reveal Stockpiling and Changing Fortunes of Certain Suppliers, Including Those Sanctioned.” Center on Global Energy Policy. Columbia University. Available online
- International Energy Agency. n.d. “China.” International Energy Agency. Available online
- Media, M. March 2026. “Disruption in the Strait of Hormuz: Implications for China’s Energy Markets and Policies.” Oxford Institute for Energy Studies. Available via PDF