China expands oil reserves to bolster energy security

China is significantly bolstering its energy security by expanding its crude oil reserves and diversifying its supply chains. Estimates suggest China’s crude oil reserves currently stand between 1 billion and 1.4 billion barrels, a figure that exceeds the United States’ reserves by approximately 600 million barrels.

To mitigate vulnerabilities associated with maritime choke points like the Strait of Malacca and the Strait of Hormuz, Beijing has shifted its procurement strategy. Between 2022 and 2025, crude oil imports from Russia increased by 26%, while imports from Iran more than doubled. This shift toward discounted Russian and Iranian oil has allowed China to reduce its overall crude oil imports by 23% during the March-July period compared to the previous year.

While China has utilized commercial stocks to manage domestic supply, its strategic reserves remain largely intact. Additionally, the country has reduced refined petroleum product exports—including gasoline, diesel, and jet fuel—to ensure domestic availability. These measures aim to reduce dependence on foreign energy sources and stabilize global prices by limiting competition for supply during periods of international conflict.