World News

cross-posted from : https://lemmy.zip/post/61886690

The US and EU remain heavily reliant on petrol and other liquid fuels, which account for roughly 40% and 44%, respectively, of their primary energy consumption. But China has managed to reduce this figure to just 28%.

Goldman Sachs pointed to three specific "shields" protecting China from the global oil shock.

First is renewable energy dominance. Alternative and renewable energy sources, including nuclear, wind, solar, and hydro, now account for 40% of China's electricity generation, up from 26% a decade ago.

Second is massive strategic reserves. China has spent years quietly building a "Great Wall of Oil,"

And lastly, China sports diversified supply chains.

While the world frets over the Strait of Hormuz — the shipping route accounts for 20% of global oil flows — China has maintained robust supply lines with non-Middle Eastern nations like Russia, Australia, and Malaysia.

Due to the oil price shock, Goldman's economists have trimmed their US real GDP growth forecast by 0.4%. In contrast, China's forecast was trimmed by only 0.2% — the lowest revision in the Asia-Pacific region.