Xi Urges Faster New Energy Build, Doubles Down on Coal
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- Xi Jinping called for accelerated planning and construction of a new energy system to safeguard China's energy security, per state broadcaster CCTV on April 6.
- Xi emphasized hydropower development and ecological protection while urging the safe and orderly expansion of nuclear power, and called coal-fired power "the foundation" of China's energy system that "must continue to play its supporting role."
- Xi did not directly mention the Middle East war in his remarks, even as analysts noted China is relatively better-positioned to absorb higher oil prices — coal accounts for more than half of its energy mix and Strait of Hormuz imports represent only around 5% of total energy consumption.
- China operates more than half of the world's coal-fired power capacity, the most of any country, and continues to frame coal as a reliability backbone and flexible backup system while accelerating renewables.
- Construction began in July on what will be the world's largest hydropower dam on the eastern rim of the Tibetan Plateau, and a China General Nuclear Power Group solar thermal plant at 4,550m altitude in Tibet broke ground on April 6.
- The US and Iran are weighing a Pakistani-brokered plan to end their five-week-old conflict, with Tehran pushing back against pressure to swiftly reopen the Strait of Hormuz.
Why it matters: Xi is publicly endorsing coal as the "foundation" of China's grid even as he greenlights record-scale renewables, signalling that energy self-sufficiency — not decarbonization alone — is the guiding principle. With Strait of Hormuz oil at roughly 5% of Chinese energy consumption and coal above half the mix, Beijing's exposure to Middle East shocks is structurally limited, which is exactly the insulation Xi's new energy push is designed to entrench.
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