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China is a top global consumer of crude oil, importing roughly 70% of its supply. On paper, it appears quite exposed to global oil shocks.
While the country is far from immune, China is actually better positioned in this oil crisis than one might think. Remember Aesop’s fable about the ant and grasshopper? The grasshopper plays all summer while the ant works hard to store food for winter. Well, guess which insect China is? “China has been really deliberate about preparing for these types of shocks,” said Conway Irwin, director of climate and cleantech at S&P Global Energy.
She said while things were getting tense last year with the U.S. and oil exporters like Iran and Venezuela, China focused on growing its already massive oil reserves.
“Adding to that reserve was a really smart hedge against the potential for future price volatility. And that's especially true because at the time, China was getting discounted barrels from Iran and Russia because of sanctions,” Irwin said. Put another way? “The rain has come, and China — fortunately for China — has the biggest umbrella,” said Cullen Hendrix, senior fellow at the Peterson Institute for International Economics. “China entered the conflict with these crude inventories estimated between 1.1 and 1.4 billion barrels, which is enough to cover about 120 days of imports.” | 
