According to economist Dr. Andy Xie, the global economy faces a looming recession, with escalating Middle East conflicts disrupting energy supplies for years. The ongoing war in the region has already created a 3 billion barrel oil shortfall, pushing prices to around US$100 per barrel, despite strategic reserve releases. As national and commercial reserves dwindle, the situation is set to worsen.
Amid this crisis, China stands to gain a leadership role in global energy markets. High energy prices are already boosting demand for Chinese renewable energy products and electric vehicles. Additionally, China’s expertise in building coal-fired power plants could provide a quick alternative to Middle Eastern oil and gas, attracting investment and export revenue. This shift could cement China’s position as the new global energy hub, strengthening its geopolitical influence.
The AI bubble is also expected to burst, compounding economic challenges. However, China’s ability to pivot toward coal-fired solutions could offer a stabilizing force in the global energy landscape.