China Seen as Well-Positioned on Energy Despite Middle East Turmoil, Expert Says

Mar 23, 2026 at 04:23 PM

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Lanka Leader

China remains relatively well-positioned to manage energy challenges despite ongoing instability in the Middle East, according to Bert Hofman, former World Bank Country Director for China and professor at the National University of Singapore.

Speaking on the sidelines of the China Development Forum in Beijing, Hofman said China benefits from a “fairly balanced” energy structure, which helps cushion the impact of global disruptions.

His remarks come as tensions in the Middle East—particularly involving Iran, the United States, and Israel—continue to unsettle financial markets and drive up oil prices. More than 80 leaders from major multinational corporations gathered in Beijing for the forum to discuss global economic challenges.

Hofman noted that prolonged and intensifying conflict in the Middle East is already affecting global markets, particularly energy sectors. Oil and gas supplies have been disrupted, contributing to declines in capital markets, especially in countries heavily dependent on Gulf energy imports.

While China is not immune to these effects, Hofman said its energy mix reduces vulnerability. He estimated that roughly a quarter of China’s energy imports come from the Gulf region, a smaller share compared to countries such as Japan and India, which rely more heavily on those supplies.

He also pointed to China’s rapid development of renewable energy as a key factor in reducing dependence on imported oil and gas, helping to balance risks through long-term policy planning.

In addition to its economic position, Hofman highlighted China’s potential diplomatic role. Given its established relations with countries across the Gulf, he suggested China could contribute to efforts aimed at easing regional tensions.