China Parlays Energy Cushions Into Regional Clout as Hormuz Stays Closed

Energy cushions let Beijing offer relief that doubles as long-term leverage.

Overview

China’s economy grew about 5% in the first quarter, and factory activity strengthened in April even as Asia faced tighter fuel supplies from the Strait of Hormuz shutdown.
Beijing is leaning on big oil reserves, domestic output, and pipeline gas from Russia and Central Asia to keep energy flowing at home.
After initially curbing fuel exports, China has eased limits for select partners, with reported jumps that include jet fuel to Vietnam up 34%, fertilizer to the Philippines up 33%, and diesel up 187%.
Vietnam, the Philippines, and Australia have sought supplies or deals with Beijing to bridge shortages in jet fuel and fertilizer.
Analysts warn a prolonged closure could trigger global fuel shortfalls by winter and hit demand for Chinese goods, even as Japan’s $10 billion pledge to Southeast Asia signals rival support taking shape.