Report says China gained from Strait of Hormuz energy disruption

A report published Tuesday by the Asia Group concluded that China was the only major Asian economy to benefit from the closure of the Strait of Hormuz. The waterway had carried roughly 80 percent of the oil and 90 percent of the liquefied natural gas that moved through it before the disruption.

Researchers tracked effects on manufacturing, energy, and agriculture after global energy prices rose following the closure. China maintained large strategic oil reserves and expanded those reserves last year when prices were lower. Its crude imports rose from 11.1 million barrels a day to 11.6 million barrels a day in 2025, with more than 80 percent of the increase directed to storage.

Renewable capacity and export growth China added 315 gigawatts of solar capacity last year, more than half of the global total for the period. The country now operates 1.4 terawatts of renewable capacity and aims for non-fossil sources to supply half of its energy by 2030.

Electric-vehicle exports increased more than 110 percent in May compared with the previous year, while solar shipments rose 60 percent in April. The report stated that other countries’ efforts to accelerate clean-energy projects have increased demand for Chinese equipment.

Risks noted in the analysis The report also recorded potential downsides for China. A senior fellow at the S Rajaratnam School of International Studies said any reduction in U.S. regional influence would not automatically translate into greater Chinese influence in the Middle East.

A non-resident fellow at the Atlantic Council’s Global China Hub said the episode could prompt Beijing to reconsider plans that require moving large naval forces through contested waters.