China Prioritises Energy Security, Tech Growth Amid Iran War Impact
China’s top leadership has reaffirmed its commitment to strengthening energy security and accelerating technological advancement as the economic effects of the ongoing conflict involving Iran begin to spread globally.
The world’s second-largest economy recorded 5.0% growth in the first quarter, staying within its annual target range and demonstrating resilience despite rising global tensions. This stability has been partly supported by strong oil reserves and a diversified energy mix.
However, increasing energy and raw material costs are putting pressure on manufacturers, raising production expenses and squeezing profit margins. At the same time, a weakening global economy could reduce demand for Chinese exports.
According to state media, the Communist Party’s top decision-making body emphasized the need to respond effectively to external shocks while maintaining steady, high-quality economic development—focused on innovation and technological progress.
Analysts note that while China’s economy started the year stronger than expected, growth may slow in the coming months due to global uncertainty and high energy prices.
The leadership also stressed the importance of building a modern industrial system, expanding the use of artificial intelligence, and achieving greater self-reliance in science and technology, alongside tighter control of supply chains.
While policies to boost consumption, stabilize the property sector, and support employment were mentioned, they appeared secondary—highlighting Beijing’s stronger focus on industrial strength and technological dominance.
Experts say China is relatively better positioned than many countries to withstand disruptions in global energy supply, thanks to its reliance on coal, growing renewable energy capacity, and adoption of electric vehicles.
