SATV, Kathmandu, Apr.27 - Amid the energy shock caused by conflicts in the Middle East, China, despite its reliance on imported oil, has managed to absorb the energy market volatility, reporting robust economic growth backed by a diversified and resilient energy structure.

China reported a 5% increase in its gross domestic product (GDP) compared to a year earlier in the first quarter of 2026. This three-month period also saw better-than-anticipated growth in industrial and energy production, with the manufacturing sector up 6.4% and the production of electricity, heat, gas and water up 4.3%, according to official figures.

China imports most of its oil from other countries. Its $20 trillion economy relies on more than 70% imported oil, making the country the largest oil importer in the world. Yet the Strait of Hormuz, a choke point through which around 20% of global oil and gas trade passes, has remained mostly closed since the beginning of March.

The month-long disruption of the global energy market has put strain on economies in Asia and Europe, but China has so far managed to mitigate market volatility through its strategic reserves, diversified import sources, strengthened domestic energy output and rapid growth in non-fossil energy sources.

Strategic oil stockpile

While China has never officially disclosed the exact scale of its strategic oil stockpile, Jiang Bing, former chief of the National Energy Administration, told CMG on Friday that "the reserves are abundant."

The International Energy Agency suggests China has 1.2 billion barrels of crude oil in storage. According to Reuters, as of 2025, China's oil stockpile can keep the country running for at least four months, far exceeding the IEA's 90-day standard for oil reserves among its member countries.

China's preparations for its strategic petroleum reserves began in 2004 after the country rapidly expanded its oil imports to sustain its booming economy.

Diversity in sources of imports

China, unlike other major Asian economies, avoids relying on a single transport route or a single supplier for its oil imports.

For instance, China's pipeline network prevents it from relying entirely on seaborne imports. About 37% of crude exported from the Middle East heads to China, with Japan accounting for 12%, according to the IEA's latest oil market report. However, imports from the Middle East Gulf accounted for just over 50% of China's seaborne oil supply, according to the same IEA report, while Japan normally gets 90% of its petroleum imports through Hormuz, according to Asahi Shimbun.