China’s top body calls for ‘consolidating’ economic recovery amid Iran war

China’s top political body on Tuesday called for the “further consolidation” of the sustained recovery of the world’s second-largest economy, as it has been two months since the US-Israeli war with Iran started, state media reported.

The remarks came at the end of a meeting by the Political Bureau of the Communist Party of China (CPC) Central Committee, chaired by President Xi Jinping, the report noted.

It said the meeting analyzed and studied the current economic situation and economic work as the current fiscal year is the first year of China’s Five-Year Plan.

“The Chinese economy has been off to a robust start this year, with key indicators beating expectations, underscoring its resilience and dynamism,” it added.

China’s economy grew at 5% in the first quarter of the current fiscal while Beijing has set its annual growth target between 4.5% and 5%.

The CPC Politburo, however, said the Chinese economy “still faces difficulties and challenges, and the foundation for the country’s sustained economic recovery needs to be further consolidated.”

It called for “greater efforts and more concrete measures to bolster economic work.”

Beijing’s call for efforts comes as the Iran war disrupted global supply chains, particularly energy flows, as the Strait of Hormuz remains blocked.

China has insisted on returning the key waterway, which manages around 20% of global supplies, to normal while calling for respect to Iran’s rights as a littoral state of the strait.

Beijing, with an economy of around $18.7 trillion, procured some 35% of its energy from Gulf countries in 2024, paying $413 billion for imports.

China maintains a 1.3-billion-barrel strategic crude reserve, enough for several months, and a diversified power mix that includes nuclear, solar, and wind, while still relying on domestically mined coal.