China Briefing 2 April 2026: EV profits rise | Ming Yang rejected | Iran war
Why it matters: China's commitment to a low-carbon pathway will accelerate due to Middle East conflicts, despite 2025 profit declines for major oil companies.
- China will "unwaveringly" pursue a low-carbon pathway, according to environment vice-minister Li Gao at the China Development Forum (China Economic Times).
- Wang Jinsong, deputy director of the National Energy Administration, stated China's energy system will prioritize "multi-energy" sources and "risk resilience" (BJX News).
- Liu Shijin, advisor at the China Council for International Cooperation on Environment and Development, called for "accountability mechanisms" and "quantitative" emissions reduction targets (Sina Finance).
- Premier Li Qiang acknowledged trading partners' concerns over Chinese industrial exports, but consultancy Trivium China noted the broader message at the CDF was "Yes, we’ve got an export-oriented growth model. Deal with it."
- Chinese climate envoy Liu Zhenmin expects the US to rejoin the Paris Agreement and stated the Middle East conflict will "definitely" not cause an oil/gas crisis in China but has spurred the government to "speed up the energy transition" (Bloomberg).
- Sinopec saw a 36.8% profit decline in 2025 due to "rising substitution by new energy" and "weak" demand, a trend also seen by China's other two largest oil and gas companies.
Despite global trade tensions and a decline in 2025 profits for major oil companies like Sinopec due to clean energy competition, China is reaffirming its "unwavering" commitment to a low-carbon pathway, with officials emphasizing both multi-energy resilience and the acceleration of its energy transition in response to Middle East conflicts. While Premier Li acknowledges trading partners' concerns, the overarching message from the China Development Forum suggests China's export-oriented growth model is here to stay.
