Beijing braces for economic impact as Iran war threatens Chinese oil: “A manmade crisis”

Beijing — China prepares for the full economic impact of the United States and Israel war with Iran because its energy supplies are seriously disrupted. China is the world’s largest energy importer, and the disruption to oil imports caused by the conflict could be a potential Achilles’ heel for Beijing, just weeks before President Trump’s highly anticipated state visit to China.

China globally imports 70% of its oil and gas and the majority of its energy comes from the Persian Gulf, according to an analysis by Det Norske Veritas, an independent global insurance and risk management provider.

Henry Wang, president of the Center for China and Globalization, told CBS News on Tuesday that China’s supply line will be seriously affected by what he calls a “man-made crisis.”

“I think it will definitely hurt China, but not just China, I think the whole world will be hurt. Strait of Hormuz has been blocked and this will impact not only China, but also Asia, Europe, Latin America and even the United States,” Wang said.

China’s top diplomat Wang Yi condemned the war on Sunday, accusing the United States of assassinating a sovereign leader, violating international laws and pushing the region “to the brink of a dangerous abyss.”

Diplomatic relations between China and Iran date back more than fifty years. After U.S. sanctions were reimposed on Tehran over its nuclear weapons program following the first Trump administration’s withdrawal from the Iran nuclear deal in 2018, Iran sold up to 80% of its oil to China, according to 2025 data from analytics firm Kpler.

Some experts believe that Beijing supported the regime by purchasing Iranian oil. Last year, China purchased 1.38 million barrels per day of Iranian oil, according to Kpler data.

But Wang told CBS News that this was simply a trade-off for Beijing and an unfair representation of how China views the relationship.

“I just think it’s a normal exchange,” Wang said. “Just like we see the war between Russia and Ukraine and all the BRICS countries like India buying from Russia. So just because one country doesn’t like Iran, you can’t really ask the rest of the world not to buy their oil.”

As Beijing deploys renewable energy and nuclear power at a pace its government calls the world’s fastest-growing green economy, China’s demand for oil continues to rise.

“I think that even though China now has a lot of green energy and has greatly improved its capabilities in alternative energy sources, 50 percent of China’s energy still depends on oil and many other natural gas and other sources,” Wang told CBS News.

Last year, off the coast of Malaysia, in the Riau archipelago, CBS News Witnessed a Ghost Fleet transporting Iranian oil and carrying out ship-to-ship transfers with Chinese tankers – a supply route that will come to an abrupt end if the war drags on. Wang says China has oil reserves of up to four to five months in the event of a prolonged conflict.

Many analysts believe the U.S. strikes on Iran are part of a White House strategy to contain China by targeting its energy supplies. Wang said that while there is no denying the effect this will have on China’s supplies, it could also cripple the United States and its allies.

“I think President Trump is self-harming. It’s hurting European countries, G7 countries and the United States as well. Not just China. The global economy as a whole. We don’t live in an isolated environment. It’s all connected,” he said.

Mr Trump will travel to China for a summit with President Xi Jinping at the end of the month. The two leaders last talked on the phone in February, when the issue of Taiwan and U.S. arms sales to the island came up in conversation.

Last year, the United States and China also engaged in an escalating tariff war before reaching a fragile détente. But the war in Iran and events in the Middle East will only add to the tension in relations between the two world superpowers.