{"id":530603,"date":"2026-04-14T16:51:14","date_gmt":"2026-04-14T16:51:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/530603\/"},"modified":"2026-04-14T16:51:14","modified_gmt":"2026-04-14T16:51:14","slug":"iran-wars-global-energy-crisis-sharpens-chinas-advantage-in-clean-tech","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/530603\/","title":{"rendered":"Iran war’s global energy crisis sharpens China\u2019s advantage in clean tech"},"content":{"rendered":"

HONG KONG — China is poised to benefit from the Iran war<\/a> as global energy disruptions accelerate a shift away from fossil fuels and toward clean technologies and renewable power, industries that China dominates.<\/p>\n

Most of the oil and gas from the now mostly shut Strait of Hormuz was Asia-bound. Asian nations are scrambling<\/a> to conserve energy and bolster dwindling reserves. As a temporary ceasefire teeters<\/a>, gasoline prices in the U.S.<\/a> and Europe<\/a> are spiking.<\/p>\n

While most of Asia is hit hard<\/a>, China will likely benefit from the fossil fuel disruptions despite being the biggest purchaser of Iranian oil<\/a>. China leads the world in battery, solar and electric vehicle exports, and its industries are forecast to face a rise in demand for renewable products.<\/p>\n

Before the start of the Iran war<\/a> in late February, China’s lead in clean technologies was lengthening. The U.S. under President Donald Trump<\/a> scaled back on renewable energy and leaned on its vast oil and gas resources, promoting energy exports to achieve what Trump described as \u201cenergy dominance.\u201d<\/p>\n

Now Chinese industry giants like vehicle-maker BYD and battery-producer CATL are well-positioned to capitalize on growing interest in low-emissions energy products as the world confronts the fragility of fossil fuels.<\/p>\n

\u201cChina\u2019s approach to energy sector development and geopolitics has been completely validated by the Iran conflict,\u201d said Sam Reynolds with the U.S.-based Institute for Energy Economics and Financial Analysis.<\/p>\n

Over a decade ago, Chinese President Xi Jinping<\/a> merged energy security with national security. China has since stepped up its focus on renewable energy, even though fossil fuels still dominate its domestic energy mix.<\/p>\n

China makes up over 70% of EV manufacturing and about 85% of battery cell production globally, according to the International Energy Agency. Its current five-year plan until 2030 continues to prioritize these industries.<\/p>\n

\u201cThey are at the very forefront of this, more so than any other countries in the world, certainly more so than the United States,” said Li Shuo, director of the Asia Society Policy Institute\u2019s China Climate Hub.<\/p>\n

The U.S. is the world\u2019s top oil producer and has pushed liquefied natural gas<\/a>. The American approach \u2014 summed up by Trump as \u201c drill, baby, drill<\/a> \u201d \u2014 favors fossil fuels over renewables.<\/p>\n

Markets were witnessing a \u201cbifurcation\u201d before the war, Reynolds said, with the superpowers pushing very different energy futures, leaving other countries with complex choices on which approach to back.<\/p>\n

The Iran war is driving demand for Chinese technology, whose exports of items such as solar panels, batteries and electric cars hit a record of almost $22.3 billion in December. That was up about 47% from the year before, with much going to Southeast Asia and Europe, according to the think tank Ember.<\/p>\n

Investment in renewable power and battery storage \u2014 designed to save energy when the sun isn\u2019t shining or the wind isn\u2019t blowing \u2014 is expected to increase in nations heavily dependent on energy imports, including European countries, according to the credit rating firm Fitch Ratings.<\/p>\n

Investors are betting the war will boost demand for renewables. In March, CATL and BYD\u2019s Hong Kong traded shares rose roughly 24% and 11%, respectively.<\/p>\n

Over the past few years, Chinese automakers were already expanding EV development and production while growing exports faster than American or European rivals, offering cheaper models and gaining ground in regions like Southeast Asia.<\/p>\n

These trends are expected to accelerate.<\/p>\n

The energy shock is \u201cgoing to help the Chinese industry globally and hurt the American car industry globally,\u201d said Amy Myers Jaffe of New York University\u2019s Center for Global Affairs.<\/p>\n

Meanwhile, high U.S. tariffs have largely shut Chinese EVs out of the American market.<\/p>\n

Rising fuel prices also may boost BYD growth in China, said Chris Liu with the research and advisory firm Omdia.<\/p>\n

Households facing higher energy costs are likely to move to clean power, said James Bowen of the Australia-based consultancy ReMap Research.<\/p>\n

Pakistan offers an early example. Its renewable rollout in 2017 led to more than 50 gigawatts of Chinese solar panels imported by December 2025.<\/p>\n

Pakistan still imports a third of its energy. About 80% of its oil flowed through the Strait of Hormuz, and Qatar had been supplying a quarter of its LNG. But \u201cthe shock isn\u2019t as big as it would have been without solar,\u201d said Nabiya Imran of Renewables First.<\/p>\n

If prices remain high, solar could save Pakistan $6.3 billion in fossil fuel imports over the next year, according to think tanks Renewables First and the Centre for Research on Energy and Clean Air.<\/p>\n

In the United Kingdom, EV leasing demand jumped by more than a third in the first three weeks of March compared to a similar period in February before the war, according to Octopus Energy, a renewable group. Octopus also reported increases in rooftop solar sales and solar-related inquiries.<\/p>\n

In Southeast Asia, Vietnamese EV maker VinFast<\/a> is offering discounts to offset fuel price shocks.<\/p>\n

Prolonged fuel spikes may act as a future catalyst for EVs, but it will take time to see the trend reflected in purchases, partly because customers are likely waiting to see how the conflict plays out, said Patrick Tan, with the energy consultancy Aurora Research.<\/p>\n

Even Indonesia, the world\u2019s largest coal exporter, is recalibrating in ways that could make it a bigger customer for China’s clean energy technology.<\/p>\n

In March, Indonesian President Prabowo Subianto announced a push into EVs, including plans to produce electric cars and expand charging infrastructure.<\/p>\n

The dream of electrified transportation is gaining renewed attention, said Putra Adhiguna of the Jakarta-based think tank Energy Shift Institute.<\/p>\n

Chinese firms play a major role in Indonesia\u2019s clean energy supply chain. They signed more than $54 billion dollars’ worth of deals with the state utility in 2023 and added a $10 billion pledge during Prabowo\u2019s visit to Beijing<\/a> in 2024.<\/p>\n

\u201cThere will be direct financial benefits to Chinese companies,\u201d said Reynolds of IEEFA.<\/p>\n

___<\/p>\n

Ghosal reported from Hanoi, Vietnam. Delgado reported from Bangkok. AP Business Writer Paul Wiseman<\/a> contributed to this report.<\/p>\n

___<\/p>\n

The Associated Press\u2019 climate and environmental coverage receives financial support from multiple private foundations. The AP is solely responsible for all content. Find AP\u2019s standards<\/a> for working with philanthropies, a list of supporters and funded coverage areas at AP.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"HONG KONG — China is poised to benefit from the Iran war as global energy disruptions accelerate a…\n","protected":false},"author":2,"featured_media":530604,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[84,11531,9114,21571,12624,1397,232,1295,164199,175289,12636,90,56,54,55,231],"class_list":{"0":"post-530603","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-environment","8":"tag-business","9":"tag-climate-and-environment","10":"tag-electric-vehicles","11":"tag-energy-industry","12":"tag-energy-markets","13":"tag-environment","14":"tag-general-news","15":"tag-international-trade","16":"tag-iran-war","17":"tag-oil-and-gas-industry","18":"tag-renewable-energy","19":"tag-science","20":"tag-uk","21":"tag-united-kingdom","22":"tag-unitedkingdom","23":"tag-world-news"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/530603","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=530603"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/530603\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/530604"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=530603"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=530603"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=530603"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}