As global energy supply chains are disrupted by conflicts in the Middle East and rising oil prices in Europe and the United States, China is reportedly maintaining relatively stable prices and energy and food supplies, according to the state-run Global Times. The publication analyzed that energy reserves, a diversified industrial network, and proactive government responses serve as a buffer against external shocks affecting people's livelihoods.
China's Consumer Price Index (CPI) rose only 0.9% in September compared to the same month last year, while food prices actually fell by 1.7%. During the seven-day National Day holiday, interregional travel across China reached 2.144 billion trips, bringing the total for the combined Mid-Autumn Festival and National Day holiday to nearly 2.8 billion trips.
Energy reserves have been identified as a key factor in mitigating the impact of soaring international oil prices. China's crude oil imports, the largest in the world, averaged about 8.1 million barrels per day in the second quarter, a 32% decrease from the previous quarter. In May and June, imports fell below 8 million barrels per day, marking the lowest levels since 2016; however, there was no domestic shortage of petroleum products. Strategic reserves and refined oil stocks played a buffering role.
Food security is also being supported. This year, China's summer grain production exceeded 300 billion jin (15 million tons) for the first time. The daily processing and supply capacity for grains and cooking oil also surpassed 1.8 million tons.
Diversification of industrial networks and energy sources also plays a role in absorbing shocks. In September, industrial production among large-scale industrial enterprises in China increased by 5.5% compared to the same month last year. Manufacturing rose by 6.0%, automotive manufacturing by 6.7%, and electronics by 16.4%. From January to September this year, coal production reached 3.45 billion tons, crude oil 164.6 million tons, and natural gas 196.7 billion cubic meters.
The transfer of rising raw material costs to consumers has also been limited. In September, China's industrial producer purchase prices rose by 6.9%, with coal mining and oil and gas extraction prices surging by 35.3% and 24.5%, respectively. However, through margin adjustments in the refining and petrochemical industries and domestic oil price regulation systems, the retail price increase for refined oil was restrained to 16.6%, according to Global Times.
The government's proactive supply management was also emphasized. China's peak electricity demand during the summer set three records, reaching 1.553 billion kilowatts, but coal stocks at government-managed power plants maintained over 30 days' worth of consumption. There were no power restrictions or outages. Global Times stated, "It is not that the world's storms have bypassed China, but rather that China has prevented those shocks from disrupting daily life," emphasizing that energy and food security, along with the government's adjustment capabilities, are sources of confidence for the Chinese economy.
* This article has been translated by AI.
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