BEIJING, Sept. 9 (Xinhua) -- With ship flows through the Hormuz Strait having largely collapsed during the latest Middle East tensions, China has emerged as a stabilizing force for energy prices by sharply cutting its oil purchases, thereby easing pressure on the global market.
Data released by China's customs authority on Tuesday showed that China imported 320.9 million tonnes of crude oil in the first eight months of the year, down 14.6 percent year on year.
From February to May, China slashed its crude oil imports by nearly 40 percent, or 4.6 million barrels per day, "helping significantly to ease wider pressures in the global market," read a commentary published on the official website of the International Energy Agency.
This is made possible partly because of the large inventories and lower refinery runs in China. Moreover, China has become less dependent on oil as by 2025, renewable energy accounted for about 60 percent of the country's total installed power generation capacity. The rapid adoption of electric vehicles has also reduced its reliance on oil.
China's energy resilience and how it cushions the global market against disruptions offer a revealing lens through which to view its broader economic role. Rather than creating the so-called "China Shock," a narrative that frames China's industrial might as a force that puts pressure on competitors, the Chinese economy has demonstrated both its readiness and capability to contribute to the world as a shock absorber.
At multiple critical junctures, China has acted as a buffer against major risks and shocks facing the global economy.
In the 2008 global financial crisis, while much of the developed world fell into recession, China's swift stimulus package not only stabilized its own economy but also sustained demand for commodities and intermediate goods from dozens of trading partners, helping arrest a deeper global downturn.
During the COVID-19-induced economic contraction, China was the first major economy to register positive annual growth, and its early resumption of manufacturing production provided critical supplies of medical equipment, electronics and daily necessities to pandemic-stricken regions worldwide.
China's role as a supply-side stabilizer has since become even more evident. In recent years, as the global economy has struggled with sluggish growth and elevated inflation, China's high-quality, efficient and cost-competitive products have enriched global supply, lowered living costs and helped ease inflationary pressures across the world.
Backed by its comprehensive industrial system, China has maintained steady growth in foreign trade while effectively cushioning the impact of rising global costs and supply-chain disruptions, thereby helping ease international inflationary pressures, noted Hsia Hua Sheng, associate professor of finance at Getulio Vargas Foundation's Sao Paulo School of Business Administration.
This has benefited both advanced and emerging economies while strengthening market confidence in global production networks, he added.
The role has become particularly visible in the clean energy sector. Through technological innovation and intense market competition, China has built the world's largest and most integrated supply chains for the new energy industry.
Over the past decade, the global average cost of electricity from wind and solar power has fallen by more than 60 percent and 80 percent, respectively. Chinese solar panels, wind turbines, batteries and electric vehicles have made the energy transition more affordable for developing economies, helping them tackle the impact of climate change.
This cushioning effect has benefited millions of households across the world. During Europe's recent heatwave, Chinese air conditioners became a hot commodity as European consumers rushed to keep cool. Behind that surge was China's ability to respond quickly to demand gaps, relying on its efficient and innovative supply chains.
Such gains are not confined to consumers, but also extend upstream into production. For many developing economies, imports from China, including machinery, equipment and industrial components, are critical inputs that help local firms cut costs, raise efficiency, expand capacity and connect more deeply with global markets, cushioning them against disruptions in supply chains and the effects of rising trade protectionism.
As the world's largest manufacturing country, China has built extensive, well-integrated production capacity across a wide range of industrial goods, intermediate products and consumer goods, allowing producers around the world to access key equipment, components and intermediate goods at lower cost and with greater efficiency, noted Geng Nan, a researcher with the Chinese Academy of International Trade and Economic Cooperation.
A 2025 World Bank working paper found that imports of intermediate goods from China helped boost productivity, capacity utilization and manufacturing employment in Ethiopia, with particularly strong employment gains in labor-intensive industries.
As a market-side buffer, China's demand provides an important outlet for producers around the globe, particularly when protectionism elsewhere is narrowing access to major markets.
Its continued opening up, including the zero-tariff treatment extended from May to imports from all 53 African countries with which China has diplomatic relations, offers developing economies greater access to one of the world's largest consumer markets and serves as another source of support for global trade.
In August, China's imports expanded by 21.7 percent, with growth exceeding that of exports for a sixth successive month. As China moves to expand domestic consumption and pursue more balanced trade, its vast market is expected to create growing demand for commodities, intermediate goods, advanced equipment, consumer products and services.
Seen in this light, China's contribution to the global economy goes beyond traditional output expansion, encompassing multiple roles as a growth engine, a major source of demand, a key supply hub, a driver of green development and a platform for cooperation, noted Gong Liutang, a professor at the Guanghua School of Management of Peking University. Enditem
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