At a meeting on 28 April, China’s leadership unveiled plans to strengthen the economy, prioritising energy security and technological self-sufficiency in the wake of the Iran war.
Beijing’s top governing body, the Politburo, pledged to “systematically respond” to external challenges and “counter various uncertainties,” according to a report published by China’s Xinhua news agency.
Beijing has been relatively resilient to the fallout from the Iran war, thanks largely to its oil reserves and focus on renewable energy. However, the ongoing blockade of the Strait of Hormuz is beginning to take effect.
A 5 per cent growth figure for the first quarter shows that China has weathered the worst of the energy shock, but the economy is still battered by the crisis. Export growth slowed to 2.5 per cent in March, down from 21.8 per cent between January and February.
Zhang Zhiwei, chief economist at Pinpoint Asset Management, told Reuters on 28 April that Beijing’s economic momentum is “likely to slow down in the second quarter due to the uncertain external situation and high energy prices”.