DW News

Is China Less Exposed than Its Neighbors to Oil Crises? | DW News

DW News examines whether China is less exposed to oil shocks than its East Asian peers as the Israel‑Iran conflict threatens Gulf supplies. The report notes China’s status as the world’s largest oil importer, taking 11 million barrels per day in 2024, and frames the analysis around the strategic importance of the Strait of Hormuz. China has built a strategic stockpile exceeding one billion barrels, providing a sizable buffer against supply interruptions. Its reliance on Middle‑East crude sits at roughly 54 percent, markedly lower than Japan’s 90‑95 percent and South Korea’s about 70 percent. Meanwhile, rapid electric‑vehicle adoption and modest growth in domestic production are curbing demand growth. Iranian crude makes up about 13 percent of China’s imports, with roughly 160 million barrels waiting in floating storage—enough for three months of Chinese demand for Iranian oil. State‑owned refineries are buying sanctioned Russian cargoes, while independent “teapot” refineries, which account for a quarter of refining capacity, handle much of the Iranian supply. These measures leave China better positioned than its neighbors, but the country has not yet tapped its strategic reserves. Continued Middle‑East volatility could still force Beijing to release stockpiles, underscoring the delicate balance between diversification, reserve management, and geopolitical risk for the world’s biggest oil consumer.