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China's Energy Security Push: From Oil Shock to Coal-Powered Chemicals

New York Times Top Stories •
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China's energy security strategy, long focused on reducing dependence on foreign oil, accelerated dramatically under President Trump's confrontational policies. China's crude oil imports rose 4.4 percent in 2025, while domestic consumption growth slowed to 3.6 percent, signaling a potential peak in demand. This shift stems from years of deliberate policies: massive oil stockpiling, aggressive investment in renewables like solar and wind, and a technological pivot to use domestic coal for petrochemicals instead of foreign-sourced oil-derived materials. China used 276 million tons of standard coal equivalent for chemicals in 2024, a 15% increase from 2023, surpassing US coal consumption. This boom, fueled by government subsidies and Xi Jinping's push for self-reliance, was triggered by Trump's trade war and pandemic disruptions, forcing China to accelerate its industrial decoupling.