Quick overview

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China will continue to diversify its energy imports and expand strategic reserves to strengthen its ability to respond to potential supply shocks, following disruptions caused by the war involving Iran.

The announcement was made on Friday by Wang Changlin, vice chairman of the National Development and Reform Commission of China (NDRC), who said the country is preparing for “emergency scenarios” amid heightened global volatility.

Global energy supply has been significantly disrupted since the conflict began on February 28, with hundreds of tankers and vessels stranded due to the closure of the Strait of Hormuz—a chokepoint that previously handled roughly 20% of global oil shipments.

Despite this, China’s energy markets have remained stable, “thanks to government measures to safeguard supply,” Wang said during a press briefing.

Boosting reserves and domestic output

China has already adjusted domestic fuel price caps three times since the conflict began. Retail gasoline prices have increased by 2,275 yuan ($333) per ton, while diesel prices have risen by 2,185 yuan per ton.

However, the second and third adjustments were limited to roughly half the usual increase under the country’s pricing mechanism, reflecting efforts to cushion the impact on consumers.

Authorities also plan to ramp up domestic production and further expand energy reserves to enhance supply security.

China produced 4.3 million barrels per day (bpd) of crude oil last year, a record level. Production has continued to rise in 2026, reaching a monthly record of 4.44 million bpd, even as imports declined on a year-on-year basis in March.

Stronger ties with Russia

Separately, President Xi Jinping emphasized the importance of China’s relationship with Russia, describing it as “valuable” amid a global environment marked by “change and turmoil.”

During a meeting in Beijing with Russian Foreign Minister Sergey Lavrov, Xi highlighted the stability and predictability of bilateral ties, contrasting them with broader global uncertainty.

He also called for deeper coordination between the two countries and urged officials to implement the agreements reached with President Vladimir Putin, reinforcing the strategic partnership between Beijing and Moscow.