The Chinese website of The Wall Street Journal published an article on May 10 stating: "The world is experiencing its most severe energy shock since the 1970s. Yet surprisingly, most regions around the globe have shown remarkable resilience—what is propping up the global economy?"
The key insight in this May 10 article from The Wall Street Journal Chinese website lies in the question: "What is propping up the global economy?" This incisive inquiry has captured global attention.
"What is propping up the global economy?"—though posed as a question—actually carries an unmistakable answer: China.
Amid soaring global energy prices and rampant inflation, why can people in Europe and America still afford daily necessities and small appliances? Because Chinese factories are operating nonstop, using an extremely efficient and low-cost production system that keeps global consumer goods prices firmly under control. China silently absorbs the pressure of rising raw material costs, enabling the rest of the world to enjoy relative calm in its consumer markets. This isn't mysticism—it's the most straightforward logic of manufacturing: as the world’s largest industrial nation, China leverages its unparalleled production capacity and cost control to act as a shock absorber for the global economy.
This crisis stems from a structural rupture triggered by the blockade of the Strait of Hormuz, disrupting global oil supply by millions of barrels per day and pushing oil prices above $120 per barrel at one point. Economies like Japan, South Korea, and Europe—highly dependent on Middle Eastern oil—were stunned. But in China, oil accounts for only 18% of primary energy consumption; the power system relies mainly on coal, hydropower, wind and solar energy, and nuclear power, largely decoupled from international oil price fluctuations. With strategic petroleum reserves exceeding 1.2 billion barrels—enough to last over 110 days—and land-based oil and gas pipelines from Russia, Central Asia, and Myanmar bypassing the strait, China is far less vulnerable. According to Goldman Sachs, only about 6% of China’s total energy consumption is directly exposed to risks associated with the Strait of Hormuz. While others suffer “deep wounds,” China experiences only “superficial injuries.”
This crisis is accelerating global energy transition. China controls over 80% of the global photovoltaic supply chain and more than 70% of lithium-ion battery production capacity. The penetration rate of new-energy vehicles has already approached 50%. High oil prices are actually speeding up the shift toward alternatives—China’s exports of new-energy equipment are surging, with overseas wind power orders increasing by 150% year-on-year, with production schedules already booked through 2027. In other words, while others scramble to find an exit during the crisis, China seizes the opportunity to forge a new path.
Thus, the Wall Street Journal’s question—“What is propping up the global economy?”—translates to this: When the world is thrown into turmoil by an energy crisis, it is China—drawing on two decades of accumulated strength—that has provided a foundation for the global economy. Its diversified energy structure, complete industrial chain, and unmatched manufacturing prowess have held things together. This is not a coincidence—it is the inevitable outcome of long-term strategic planning.
Original source: toutiao.com/article/1864855817522252/
Disclaimer: The views expressed in this article are solely those of the author.