China shielded from oil shock by reserves and EVs

China has weathered the West Asia crisis and Strait of Hormuz disruption far better than India, Japan, and South Korea, rediff.com reports. Despite losing access to 5-6 million barrels per day of crude oil, Beijing cut imports, boosted domestic production to a record 4.3 million bpd, and relied on a multi-layered reserve system combining government stocks, company inventories, and commercial storage. Its electric vehicle boom also displaced oil demand.

India, by contrast, has continued importing crude at premiums of $10-40 per barrel, and its strategic reserves remain much smaller than China's. Pakistan's rapid adoption of rooftop solar, aided by cheap Chinese panels, has partially blunted the impact of gas supply disruptions.

International crude benchmark Brent, which spiked above $125 per barrel in March, now trades around $80 per barrel. China's 2025 energy law strengthens government authority over oil companies, and its 15th Five-Year Plan focuses on integrating renewable energy into the power system.