China Urges Accelerated Development of a New Energy System to Safeguard Energy Security Amid Global Market Volatility

Amid the ongoing Middle East conflict that has shaken global energy markets, Chinese President Xi Jinping called for accelerating the planning and deployment of a new energy system to bolster energy security and sustain long-term economic growth. CCTV reported on April 6 that Xi made the remarks after weeks of heightened tensions in the Middle East, including risks to global oil and gas supply linked to Iran.

Xi, who leads the world’s second-largest economy, also emphasized hydropower development tied to ecological protection and urged expanding nuclear power through safety-focused, orderly development. He said the Central Committee of the Communist Party of China has “deeply understood the trend in global energy development” and has made key policy decisions by advancing a new energy security strategy.

Geopolitical backdrop

While Xi did not explicitly reference the conflict, his comments come as the United States and Iran consider a plan mediated by Pakistan to end a five-week war. Separately, Tehran opposes pressure to quickly reopen the Hormuz Strait, a critical shipping lane for global energy transport.

China’s exposure to oil price volatility

Analysts cited by the report said China is relatively well positioned to handle higher oil prices compared with many other economies. Coal accounts for more than half of China’s energy mix, and China also maintains large oil reserves. The share of energy imported through the Hormuz Strait is estimated at about 5% of total energy consumption, which the report said helps reduce dependence on the region.

“The path we chose when leading the development of wind and solar power has proven to be farsighted. At the same time, coal remains a mainstay of the energy system and should continue to play a supporting role.”

Coal, emissions and the “multi-pillar” approach

The report noted that China operates more than half of the world’s coal-fired capacity, making it the largest emitter of carbon. It said this has long been a challenge for climate initiatives championed by the West. Even so, Beijing continues to view coal as a pillar for system reliability and as a flexible backup as renewable energy grows.

Xi nevertheless stressed that the world’s largest coal consumer must remain committed to clean and low-emission development. CCTV reported that a “greener, more diverse, and more resilient” energy system will help lay a foundation for energy security and long-term economic growth.

Energy projects underway

Alongside the strategic direction outlined by Xi, China is pushing forward large-scale energy projects. In July 2025, the country began construction of what is expected to be the world’s largest hydropower project on the eastern edge of the Tibetan plateau. On the same day, Xinhua reported that the China General Nuclear Power Group started building a solar thermal plant at an altitude of 4,550 meters in Tibet.

Impact and outlook

In an increasingly uncertain geopolitical environment, the report said accelerating the build-out of a new energy system is both a short-term response to recurring energy shocks and a long-term strategy to reduce reliance on external bottlenecks. It described China’s direction as combining expanded renewables, nuclear power developed in a controlled manner, and continued use of coal as a reliable base—an approach aimed at building a more self-reliant, flexible, and sustainable energy system over time.