China faces increasing challenges in securing energy supplies, as Beijing closely monitors the rising US pressures on Iran and Venezuela. These pressures directly affect the stability of vital oil supplies for China, which relies on these sources to meet its industrial needs.
Iranian and Venezuelan oil represent a strategic pillar for China's energy security, accounting for over 20% of Beijing's imports. These sources contribute billions of dollars annually, ensuring the continuation of China's industrial momentum in the face of Western pressures.
Details of the Situation
Reports indicate that US pressures on Iran and Venezuela go beyond mere conflict with regimes opposed to the United States, reaching a direct targeting of the Chinese economy. China relies on a complex strategy to obtain Iranian oil away from international scrutiny, as it has not imported a single barrel from Iran since July 2022, according to official data. However, customs data indicates a massive increase in imports coming from Malaysia, which reached 1.72 million barrels per day in June 2025, equivalent to double Malaysia's actual production.
These operations are based on what is known as the "shadow fleet," where old oil tankers operate at unlicensed gathering points offshore, turning off tracking devices and transferring shipments from one ship to another to be re-registered as Malaysian or Indonesian oil. The "tea kettles," which are independent refineries in China's Shandong province, are the final destination for this oil, obtaining it at attractive discounts ranging from $8 to $10 per barrel.
Background & Context
The US pressure has not been limited to the Middle East but has extended to South America, where Beijing has invested billions of dollars in the Venezuelan energy sector since the era of Hugo Chavez. The blow came with the arrest of Venezuelan President Nicolas Maduro in early 2026 as part of a campaign to curb drug trafficking launched by the administration of US President Donald Trump. This move immediately disrupted Venezuelan oil sale policies and raised prices by 30%, effectively ending the era of cheap oil that China relied on to cover about 4% of its annual needs.
As US threats escalate under the banner of preventing Iran from acquiring nuclear weapons, and a military campaign led to the death of Supreme Leader Ali Khamenei on February 28, the security of China's energy has entered a phase of severe danger. The Strait of Hormuz represents the "bottleneck" for Chinese industry, through which more than half of the oil destined for China passes, with 40% of its needs coming from Middle Eastern countries.
Impact & Consequences
US reports indicate that Washington prefers the option of "pressure through energy" over direct military confrontation with China. Military simulations of a potential war over Taiwan have shown the likelihood of significant American losses. Additionally, a comprehensive trade confrontation could harm the US economy if China retaliates by halting the export of "rare earth metals."
Consequently, US policymakers have found in sanctions, control over maritime routes, and drying up sources of cheap oil a less costly and more effective tool to limit Chinese expansion. In turn, China has not been oblivious to these scenarios, having begun building massive strategic oil reserves over the past two decades.
Regional Significance
These developments directly affect the Arab region, where Arab countries are a major source of oil. Any disruption in oil supplies could negatively impact global oil prices, affecting the economies of Arab countries that rely on oil revenues. Furthermore, escalating tensions in the Middle East could lead to increased instability in the region.
In conclusion, China remains faced with significant challenges in securing energy supplies amid rising US pressures. The current situation requires new strategies to ensure the stability of oil supplies and maintain industrial growth.