Capabilities Analysis

China shows inability to protect own interests in Strait of Hormuz

2024-08-23

China has leaned heavily on US-led protection of freighters in the region to ensure the safe passage of oil and natural gas that is critical to Beijing.

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US warships sail in formation during a Strait of Hormuz transit. [US Navy]
US warships sail in formation during a Strait of Hormuz transit. [US Navy]

Despite being the world's largest importer of crude oil, China glaringly has failed to promote security in the Strait of Hormuz -- betraying its inability to defend its interests in the region.

The Bahrain-based US Fifth Fleet is active in the Strait of Hormuz, where Iran has a long history of harassing ships and which it has threatened to "close" on more than one occasion.

A US-led coalition of about two dozen countries has also been actively working to secure shipping in the region's waterways, which have come under attack since last October from the Iran-backed Houthis.

The United States continues to carry out precision strikes on Houthi targets in Yemen and over the Red Sea since mid-January.

China -- a key Iran ally and the world's largest manufacturer, responsible for 29% of global production -- has been conspicuously absent from the coalition, nor has it condemned the Houthis' actions even after Houthi-launched missiles struck a Chinese-owned vessel in March.

China has been unable to leverage its ties to Iran to move the needle on maritime security.

This lack of power projection would become even more apparent during a major crisis that closed down the Strait of Hormuz.

China fails to secure navigation

Oil, gas and coal imports by China account for about 85%, 40% and 7% of the country's domestic consumption, respectively; and about 18%, 16% and 18% of the global trade of these commodities.

China is also the world's largest importer of crude oil, importing 11.3 million barrels per day of crude oil in 2023.

It relies on Arabian Gulf oil, which accounted for over 50% of China's imports in the first quarter of 2022. Beijing imports three times more Arabian Gulf oil than the United States and European Union combined.

A significant proportion of this oil must traverse the world's most critical chokepoint: the Strait of Hormuz.

More than a sixth of the globe's oil and a third of its liquefied natural gas pass through the strait, tucked between the Arabian Gulf and the Gulf of Oman.

Its critical geopolitical location and the lack of any viable alternative make the strait essential to China.

Yet, despite the clear threat to its commercial interests, China has been fairly passive. Instead, it has leaned heavily on US- and coalition-led protection of freighters in the region, ensuring the safe passage of oil and natural gas.

While China boasts the world's largest navy, the vast majority of its fleet consists of short-range vessels including offshore patrol vessels, corvettes and frigates that could not reach the Strait of Hormuz during a crisis.

Additionally, China lacks skilled shipyard workers and modern facilities to maintain its fleet's combat readiness far from its shores.

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