On China's Position Amid the US vs Iran War

The war triggered by US and Israeli attacks on Iran has disrupted global oil and gas flows, leaving Southeast Asian governments scrambling. Now, China is attempting to seize the opportunity from this issue. “China is willing to strengthen coordination and cooperation with Southeast Asian countries to jointly address energy security issues,” said spokesperson for China’s Ministry of Foreign Affairs, Lin Jian, at a press conference last week, as reported by DW on Friday (27/3/2026). So far, Southeast Asian countries have implemented various energy-saving measures and subsidies. Countries in the region are also competing to find alternative suppliers and trade routes to meet their energy needs. Even nations like Malaysia and Brunei Darussalam, which are producers and exporters of oil and gas, remain vulnerable to inflation and supply chain disruptions in West Asia. Meanwhile, on 24 March 2026, the Philippines declared a national energy emergency status for one year. The Philippines issued a warning of an ‘imminent threat’ to energy supplies. The Manila government has also implemented a four-day workweek for government offices and restricted energy use. The Philippines is channelling cash assistance to transportation workers. The Philippines also warned that fuel shortages could ground parts of its airline fleet. Vietnam is also taking steps to address the energy crisis. Vietnam has utilised its energy price stabilisation fund and asked airlines to prepare for operational cuts, while importers warn that jet fuel supplies are only secure until March 2026. Indonesia has pledged to absorb some impacts through the state budget and increased subsidies. Thailand is considering additional aid amid surging diesel prices that are hitting sectors like fisheries. Malaysia is also boosting subsidies to keep fuel prices stable. The crisis has led Southeast Asian governments to seek temporary supplies from outside the Arabian Peninsula region. According to a Reuters report last week, Asia is estimated to import the largest volume of Russian fuel in March 2026, with Southeast Asia as the largest recipient. China Wants to Emerge as the ‘Saviour’ Associate Professor at Singapore’s S Rajaratnam School of International Studies, Li Mingjiang, assesses that China is exploiting this crisis to ‘present itself as a responsible actor and stabiliser’. He notes that China has called for de-escalation in the Middle East and pledged to work with Southeast Asian countries to address energy shortages. Academic from the Lee Kuan Yew School of Public Policy, Chin-Hao Huang, views Beijing as aligning with the general stance of Southeast Asian countries on Iran, namely pushing for diplomacy. Like countries in the region, the Chinese government wants the Strait of Hormuz to reopen soon while remaining cautious to avoid direct involvement in the conflict. “So far, China’s public response has been to call for restraint, ceasefire, and dialogue, which is a common ground for most Southeast Asian governments,” said Huang. This crisis also reinforces the narrative that China is a great power defending peace, free trade, and multilateralism, while positioning itself in opposition to the United States, seen as aggressive. “The US-Israeli military intervention in Iran is highly unpopular in several Southeast Asian countries. China doesn’t even need to do anything for the US image to worsen further in the region,” said Associate Professor at the University of Hong Kong, Enze Han. “The surge in gas prices in many countries also tarnishes the United States’ image. Once again, Beijing doesn’t need to do anything for the blame to be directed at the US,” he added. Nevertheless, drawing closer to China does not guarantee energy stability for Southeast Asian countries. Beijing itself has restricted fuel exports to protect its domestic supplies. On 18 March, Cambodia stated that export restrictions from China and Vietnam have forced it to seek alternative suppliers and prepare for domestic energy shortages. In the long term, this crisis has the potential to strengthen China’s position in Southeast Asia. The energy shock has raised concerns over dependence on Middle Eastern oil. This situation increases the appeal of renewable energy, a sector where Chinese companies are highly competitive. China has been involved in Southeast Asia’s green energy transition. Chinese companies are among the largest investors in the electric vehicle and battery industries in the region. Beijing is also the main financier of large hydropower and solar farm projects in mainland Southeast Asia. Speaking at the Boao Forum in China, Singapore Prime Minister Lawrence Wong said China can ‘play an important role’ in shaping the global direction and ‘a greater role in supporting regional prosperity and stability’ while urging Beijing to remain a supporter of rules-based open trade. Wong also emphasised that ASEAN needs to collaborate with China on renewable energy development and regional power grids. If the Iran war pushes Southeast Asia to reduce reliance on oil, China stands to benefit, not only from the current crisis but also from the region’s strategic responses moving forward.