China Changes Energy Strategy, Reducing Imports and Redirecting Supplies

Geopolitical tensions in the Middle East, which have triggered a surge in global energy prices, are beginning to alter China’s patterns of oil and gas imports. The country, the world’s largest energy importer, has been recorded reducing purchases from global markets while redirecting supply sources to safeguard domestic energy stability. Recent reports show that this decline in imports is not merely due to weakening demand but also a strategic response to soaring prices and supply disruption risks, particularly from the Gulf region. Quoted from The Guardian on Tuesday (14/4/2026), in recent weeks, global oil prices have breached the $100 US per barrel level, triggered by conflicts and distribution disruptions around the Strait of Hormuz, a vital route for global energy shipments. This situation has prompted importers, including China, to hold back on purchases. An Oilprice report states that the sharp price increase has led Chinese buyers to reduce volumes of oil and gas imports while utilising existing reserves. Since the beginning of the year, China’s crude oil imports have risen significantly by 8.9%, thanks to ongoing stockpiling efforts by Beijing that began in 2024. Historically, China has tended to suppress imports when energy prices surge. According to Reuters, China has demonstrated in the past that it tends to reduce imports when oil prices rise too high. Moreover, China’s LNG imports in March 2026 are projected to be the lowest since 2018. Natural gas imports fell 11% last month, according to Bloomberg citing official customs data. With a total of 8.183 million tonnes in March 2026, China’s gas imports for the year so far have dropped 4% compared to 2025. Liquefied natural gas imports, according to preliminary data, may have plunged 22% from the previous year in March to 3.74 million tonnes.