Can China’s coal industry ride to the rescue of a world in oil shock?
Be warned. The global economy is likely to experience a recession next year. War across the Middle East is set to escalate, wrecking energy supplies for many years, even as the artificial intelligence (AI) bubble is ripe to burst. This, however, would also create an energy leadership opportunity for China. High energy prices already fuel demand for Chinese renewable energy products and electric…
The global economy is expected to enter a recession next year due to escalating war in the Middle East and the potential burst of the artificial intelligence bubble. China, currently a leader in building coal-fired power plants, could fill the gap left by Middle Eastern oil and gas supplies. As oil demand decreases, China could attract significant investment and export revenue.
The United States has halted attacks on Iran to prevent a war of attrition, but the situation could still disrupt most Middle Eastern hydrocarbon supply. China, being a major coal producer, has a unique opportunity to expand its coal chemical industry to produce substitute oil products, meet global demand, and strengthen its geopolitical position.
Written by urgent.news from Reuters Business via SCMP's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
