Energy security, China has quietly stepped up its efforts

Ask AI · How can China’s energy security strategy achieve a high level of self-sufficiency?

China News Network (Zhongxin Jingwei) March 26 report (Xue Yufei): “For a stable economy, instability is the worst possible scenario—what should we do about energy supply? I think we’ve just realized that we can’t rely on oil, and we can’t rely on oil from specific regions. We must be especially cautious. Now, every country must achieve energy diversification and cannot rely only on a single type of energy.” British Group of 48 Chairman Jack Perry said to Zhongxin Jingwei.

Under the Iran-U.S. conflict, energy security is one of the hot topics at the 2026 Boao Forum for Asia annual meeting, and several guests, including Jack Perry, have expressed concerns.

“Many Asian countries’ imported crude oil is highly dependent on the Middle East—for example, Japan accounts for 90% and South Korea 70%. Geopolitical conflicts are reshaping the world’s energy map and are eroding Asia’s cost advantage in manufacturing,” Luo Bixiong, Chief Scientist of China Energy Engineering Group and Chairman of China Power Engineering Consulting Group Co., Ltd., said.

In recent days, both Japan and South Korea’s stock markets have seen major fluctuations. External analysis suggests this is closely related to the two countries’ high dependence on crude oil imports.

At the same time, however, China’s past efforts in energy security have earned praise.

Li Cheng, Founding Director of the Center for Contemporary China and the World at the University of Hong Kong (CCCW) and former founding director of the John Thornton China Center at the Brookings Institution, said at the forum that the conflict between the U.S. and Iran has affected the entire world. In it, we can see that China has a strong sense of crisis awareness. Whether it is energy reserves or food reserves, China’s approach is cautious, with room left in advance.

Lin Yifu, President of the New Structural Economics Research Institute at Peking University, said at the forum that if oil prices continue to rise, it is likely to bring back the oil crisis of the 1970s. But China has made preparations for all kinds of external conditions. China is a large economy, like a large aircraft carrier—once it takes care of its own business, no matter how external conditions change, it can sail forward through rough seas. China is well prepared for various uncertainties on the outside, such as oil: China’s import sources of oil are highly diversified.

In 2025, China’s total electricity consumption across the whole society first exceeded 10 trillion kilowatt-hours, with more than one-third coming from green power. In 2025, the combined installed capacity of wind power and solar photovoltaic reached a historic milestone by surpassing thermal power installed capacity.

For China’s work to ensure energy security, Dong Xiucheng, Executive Dean of the China International Carbon Neutrality Economic Research Institute at University of International Business and Economics, provided an even more precise summary. He told Zhongxin Jingwei that in recent years, China has used “four revolutions and one cooperation” as the overall program to build a solid line of defense for energy security:

First, increase reserves and production. Crude oil output remains stable at over 200 million tons, natural gas has increased production for 9 consecutive years by 10 billion cubic meters, and the self-sufficiency rate for oil and gas has improved. Second, improve the strategic petroleum reserve system and accelerate the construction of oil and gas pipeline networks. The total length exceeds 200,000 kilometers, and the resilience of oil and gas supply assurance has been strengthened. Third, establish a diversified import strategy, expand channels such as Russia, Central Asia, and Latin America, reduce dependence on the Middle East, and lock in supply through long-term contracts.

Fourth, speed up structural transformation. The share of non-fossil energy consumption increases year by year; wind and solar installed capacity ranks first globally; and nuclear power scale is leading. Fifth, strengthen energy conservation and efficiency improvement. Support relatively high economic growth with a 3.3% energy consumption growth rate, and the fastest global decline in energy intensity. Sixth, continuously improve the oil price formation mechanism and establish a “ceiling + floor” mechanism for refined oil prices to offset fluctuations in international oil prices.

“Overall, China’s energy security work has delivered remarkable results. The self-sufficiency rate in energy exceeds 84%, with 90% of incremental consumption ensured domestically, and the ability to withstand external shocks has been significantly enhanced,” Dong Xiucheng concluded.

Building on China’s experience, accelerating energy transition has become a solution offered by many guests at the 2026 Boao Forum for Asia annual meeting.

Former Finnish Prime Minister Aho cited a quote from former British Prime Minister Churchill: “Don’t waste a good crisis.” Aho said that the oil crisis in the 1970s was a good crisis—it forced humanity to start reducing dependence on oil and promoted the development of substitute energy. The current crisis provides a warning: it is necessary to continuously increase the share of independently produced oil and also find some alternative solutions.

Andrew Forrest, Executive Chairman and Founder of the iron ore production giant Fortescue, said: “If every country, every company, cannot achieve energy independence, it cannot achieve true independence. As shown by the current situation in the Strait of Hormuz, energy transition is urgent. Every responsible leader should strongly drive the energy transition. What we need now is to show courage and do what truly matters—develop new energy.”

Mohammed Abunayyan, Chairman of Saudi Electricity and Water Company, said that the conflict in the Middle East may accelerate the energy transition in the Middle East. He said that over the past decade, people have seen many scenarios that previously were not anticipated. Green energy can become so economical and environmentally friendly. He is very concerned about green power and also about innovation. We must greatly thank China—without China, there would be no green energy.

Mohammed Abunayyan said: “Saudi Arabia is one of the world’s largest oil-producing countries. Traditional fuels will certainly continue to be produced and used. We are not choosing between the two. Rather, we hope that all humanity can receive sufficient, safe energy supply, and that every country and region can obtain fuels with good value for money.”

Dong Xiucheng said that globally, new energy is gradually upgrading from a “carbon-reduction tool” into a core pillar of energy security. China’s industry scale, technology, and cost advantages will be further consolidated, and then become a leading force driving the global energy transition.

(For more reporting leads, please contact the author of this article, Xue Yufei: xueyufei@chinanews.com.cn) (Zhongxin Jingwei APP)

** (The views in this article are for reference only and do not constitute investment advice. Investing involves risk; be cautious when entering the market.)**

Editor in charge: Wei Wei, Li Zhongyuan