Five spies for China in Britain

Beijing stockpiled Iranian crude oil before war; CCP sets lowest GDP target in decades

Observing China is the essential newsletter to understand the UK-PRC relationship, explained in the context of global developments.

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The People’s Republic of China (PRC) is the world’s largest oil importer, sourcing approximately half of its crude oil from the Middle East.

In a prescient move, Chinese oil refiners purchased record amounts of Iranian (and Russian) crude oil before the outbreak of conflict in the Middle East, while the Chinese Communist Party (CCP) also stockpiled significant amounts of resources. The United States (US)-Israel-Iran conflict has cut off nearly all shipping in the Strait of Hormuz, a conduit for 20% of global oil supplies.

Although the PRC has, in recent years, been the largest purchaser of Iranian crude oil, it buys even more from Saudi Arabia. Beijing’s investments in Riyadh and the United Arab Emirates (UAE) also far exceed those in Tehran.

Onto more fiscal and less fiery matters, the CCP has just set its lowest economic growth target since 1991. The target of 4.5-5% Gross Domestic Product (GDP) growth was announced at this year’s ‘Two Sessions’ series of meetings.

Every year, the National People’s Congress (NPC) – the CCP’s legislative body – and the Chinese People’s Political Consultative Conference (CPPCC) – an advisory body – hold concurrent but separate meetings to outline the key points of focus for the party over the next year, known as the ‘Two Sessions’. Legislation is typically ratified in these meetings, alongside personnel changes and setting the budget.

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