00:00What if the Strait of Hormuz suddenly shut down?
00:02Most of Asia would face an immediate energy crisis.
00:06But China might survive the shock.
00:08Here is why.
00:10Right now, China is the largest buyer of oil passing through the Strait of Hormuz.
00:14About 5.4 million barrels move to China every single day.
00:19So yes, China is exposed.
00:21But it has built powerful buffers.
00:23First, electric vehicles.
00:25In China, EVs now make up about half of all new car sales.
00:30That means millions of cars no longer need gasoline.
00:33In fact, the oil China saved from EVs last year equals the oil it imports from Saudi Arabia.
00:40Second, China's power grid.
00:41Most of its electricity comes from domestic coal, wind, and solar.
00:46That means the country is not heavily dependent on imported oil, just to keep the lights on.
00:52Third, diversification.
00:53China buys oil from many countries like Russia, Iran, Saudi Arabia, and Venezuela.
01:00No single supplier dominates its imports.
01:03Fourth, huge reserves.
01:04China has built massive oil stockpiles that could cover months of supply during a crisis.
01:10And finally, pipelines.
01:12China can import energy through land routes from Russia, Central Asia, and Myanmar.
01:17Routes that completely bypass the Strait of Hormuz.
01:20So if Hormuz shuts down, China will still feel the pain.
01:24But compared to many Asian economies, it has built a system designed to absorb the shock.
01:29The real question is not whether China is safe.
01:32It is whether the rest of Asia is ready.
01:34China is able to take the most energia throughout the world to the world.
01:34China is a 74-percent strategy.
01:35China is late, China is always shaping up north of the world of South Africa.
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