Key facts
- China is the sole Asian winner from the Strait of Hormuz crisis, according to a report.
- The crisis has sent global energy prices soaring, particularly impacting Asian markets.
- China's large energy stockpiles and rapid renewable energy rollout have cushioned the impact.
- China's electric vehicle exports increased over 110% in May, and solar shipments rose 60% in April.
- The report suggests the crisis allows China to portray the U.S. as a destabilizing force.
China has emerged as the sole beneficiary in Asia from the crisis in the Strait of Hormuz, according to a report by the geopolitical consulting firm Asia Group. The conflict, triggered by U.S. and Israeli strikes on February 28 that led to the death of Iran's supreme leader Ali Khamenei and Iran's virtual closure of the vital waterway, has sent global energy prices soaring, with Asia being particularly vulnerable.
The report highlighted that prior to the strait's closure, approximately 80% of oil and nearly 90% of liquefied natural gas transiting the waterway were destined for Asian markets. However, China's extensive energy reserves and its ambitious rollout of renewable energy infrastructure have allowed it to weather the energy shock more effectively than other regional economies.
China has been strategically building up its energy stockpiles, with crude imports growing in 2025 and a significant portion directed to reserves, providing substantial import cover. Concurrently, the country has been rapidly expanding its renewable energy capacity, installing vast amounts of solar power and aiming for a substantial non-fossil fuel energy mix by 2030. This dominance in clean technology supply chains has also boosted its exports of electric vehicles and solar panels.
The report suggests that the crisis allows Beijing to position the United States as a destabilizing force whose foreign policy actions impose costs on the global economy. While China has called for a ceasefire, its economic and geopolitical standing appears to be strengthened by the ongoing instability.