China’s long-term preparations for an energy crisis have positioned it better than most as the world faces shortages. That view comes from SEB’s Asia chief, who spoke as the country entered its Year of the Dragon.
SEB’s head of Asia research, Olle Holmgren, said China has spent years building up strategic oil reserves and diversifying supply chains. These steps now reduce its exposure to global price shocks. The country’s energy demand remains high despite economic slowdowns in Europe and the U.S.
China’s approach contrasts with Europe’s struggle to replace Russian gas. Holmgren noted that while Western nations scramble for alternatives, China can rely on its stockpiles and domestic production. Its refiners have also secured long-term contracts with Middle Eastern suppliers.
The Year of the Dragon, which began in February, traditionally symbolizes strength and transformation. For China’s energy sector, that symbolism holds practical weight. The country’s refining capacity has expanded, and new pipelines have improved distribution from inland fields to coastal demand centers.
Holmgren added that China’s state-run energy firms are increasing output to stabilize domestic markets. Despite global volatility, these measures help shield the economy from the worst effects of the crisis.
Source: e24.no