Power of Siberia 2 creates strategic risk-hedging mechanism for China — expert

Business & Economy May 04, 14:32

Qu Wenyi noted that the escalation of the conflict between the US and Iran has significantly increased the risks associated with maritime energy transportation and the Strait of Hormuz

SHANGHAI, May 4. /TASS/. The implementation of the Power of Siberia 2 gas pipeline project will allow China to reduce the risks associated with LNG supplies from the Middle East, Qu Wenyi, head of the Center for Russian and Eurasian Studies at East China Normal University, told TASS.

"After the commissioning of the Power of Siberia 2 gas pipeline, annual gas supplies from Russia to China will increase by 50 billion cubic meters, reaching a total of approximately 100 billion cubic meters, or approximately 50% of China's total gas imports," she said.

"This will create an effective strategic risk-hedging mechanism and significantly mitigate supply and demand fluctuations along maritime routes from the Middle East and Africa," the professor added.

She noted that the escalation of the conflict between the US and Iran has significantly increased the risks associated with maritime energy transportation and the Strait of Hormuz. In this context, Power of Siberia 2 is becoming increasingly valuable in terms of supply stability, economic efficiency, and geopolitical stability, Qu Wenyi stressed.

In the meantime, China, as the world's leading industrial country with a huge population, must guard against the risk of an energy import imbalance, she emphasized.

"Despite the high level of political trust and cooperation between China and Russia, adjustments to Russia's domestic policy or extreme geopolitical conflicts could still cause supply disruptions," the researcher noted, citing attacks on energy infrastructure as an example.

Events in the Middle East have confirmed the foresight of China's strategy of balanced energy imports by both land and sea, the professor believes. China consistently pursues import diversification and is actively developing renewable, nuclear, and conventional energy domestically.

"The recent Middle East crisis caused sharp fluctuations in international energy prices, while domestic energy and electricity prices in China remained relatively stable, directly demonstrating the effectiveness of this hedging strategy," Qu Wenyi noted.

According to her, an increase in Russia's share of China's energy imports is a "manageable risk." During periods of global geopolitical instability, Russian energy is becoming an important source of stability for China in building a self-sufficient and controllable energy security system.

Following Russian President Vladimir Putin's visit to China in late August-early September 2025, Russia and China signed a legally binding memorandum on the construction of the Power of Siberia 2 gas pipeline and the Soyuz Vostok gas transit pipeline through Mongolia, with a capacity of 50 billion cubic meters.

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