Deep Tracking | When the world is gripped by energy anxiety, why can China remain calm and composed? Former UK Investment Minister's insights

Ask AI · How does a former UK investment minister view China’s role in the energy transition?

The conflict between the US, Israel, and Iran has entered its second month. Shipping through the Strait of Hormuz has been severely disrupted, global oil prices and other energy prices have surged significantly, and concerns about energy security and the stability of the global supply chain continue to heat up.

Cargo ships heading from the Persian Gulf toward the Strait of Hormuz. (Image source: Visual China)

Many market analysts believe that the US and Israel’s attacks on Iran have turned geopolitical conflict concerns into a reality, which may further increase uncertainty, dragging down global economic growth in ways such as fueling inflation, disrupting the main paths of major central banks’ rate cuts, and shaking business confidence.

Screenshot of a report from The New York Times

Regarding the issue of Middle East fighting spilling over and impacting global energy markets, The New York Times reported recently that, as major industrial countries around the world fall into energy anxiety, through decades of vigorous investment in electric vehicles and renewable energy, China has built a real “energy resilience” barrier.

Screenshot of a report from Today News

As it turns out, Nigeria’s Today News also reported that the worsening situation in the Middle East has thrown the global energy market into difficulty. As oil prices have skyrocketed, many countries are under heavy pressure. In this storm, one country appears especially composed—China. The article believes that, China’s energy strategy not only effectively expands the scale of renewable energy utilization, but also, to a considerable extent, reduces dependence on overseas oil and gas. China’s practices show other developing countries a viable path to break free from energy reliance and achieve independent development.

Former UK investment minister Qin Zhitang (Gerry Grimstone), in an exclusive interview with an International Online reporter, said that although the current situation in the Middle East is manifested as a regional conflict, its impact has long gone beyond a local scope, and it has already produced a spillover effect on global energy supply and market expectations. He pointed out that, “this issue itself is a relatively localized problem,” but the shocks it brings are global—especially in the energy sector.

Photo of former UK investment minister Qin Zhitang (provided by the interviewee)

Qin Zhitang believes that the technological capabilities and development speed China has demonstrated in areas such as electric vehicles and solar energy in recent years have placed China in a relatively favorable position in the context of China’s continued push for the global energy transition. When facing the energy crisis brought on by this conflict, China will be able to handle it more calmly. If the current tense situation in the Middle East further triggers larger-scale energy shocks, it may further prompt countries to accelerate the search for alternative energy sources, and China’s energy-practice strategy will have important leading influence. (Lu Longtian)