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China still can’t quit Iran’s oil
The year 2026 will test whether Beijing is willing to pay the near-term cost of breaking free from sanctioned crude oil.
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The war in the Middle East could cost China an estimated US$160 billion annually in crude import costs.
PHOTO: REUTERS
Bernard Aw
China begins 2026 with a modest growth target of 4.5 per cent to 5 per cent, the lowest since 1991. This reflects an economy in transition amid subdued consumer spending, stresses in the property sector, and softening global demand.
But a new shock now threatens to compound these headwinds: the deepening Iran conflict has triggered an energy crisis, which has raised fresh concerns about China’s exposure to geopolitical risks at a time when its economic momentum is already under strain.
