China’s Electrostate Is Poised to Win From War in the Middle East


An electricity transmission hub is at the terminus in south-central China of the world’s longest and most powerful ultrahigh-voltage power line. Chinese companies dominate the manufacturing of nearly every piece of a modern grid. Gilles Sabrié for The New York Times

A cluster of Chinese firms is poised to win big from the energy crisis set off by the war in the Middle East, building on booming investment in artificial intelligence.

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By Meaghan Tobin and Keith Bradsher
Meaghan Tobin reported from Taipei, Taiwan, and Keith Bradsher from Yancheng, China.

April 13, 2026
Updated 4:46 a.m. ET

The war in the Middle East has disrupted oil and gas supplies, jolting governments around the world to confront the urgent need for power grids that can withstand future shocks. ... But for many countries, the push to build grids based on renewable energy is creating a new dependence on technology from China.

Chinese companies dominate the manufacturing of nearly every component of a modern grid, including solar panels, high-voltage cables, transformers and batteries that store energy for later use. Even before the war in Iran, they were expanding abroad, helping countries build grids designed to meet the heavy electricity demands of artificial intelligence.

For decades, China has poured hundreds of billions of dollars into green energy, making it a cornerstone of the country’s drive for energy independence. It also blocked foreign companies from competing in large segments of its domestic market, such as manufacturing wind turbines and electric car batteries, to ensure that Chinese companies could grow into giants.

Now the war with Iran has laid bare the risks of reliance on Middle Eastern oil and gas. Countries are realizing that all paths to renewable power run through China and its exporters.

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Ruoxin Zhang contributed research from Yancheng, and Xinyun Wu from Taipei.

Meaghan Tobin covers business and tech stories in Asia with a focus on China and is based in Taipei.

Keith Bradsher is the Beijing bureau chief for The Times. He previously served as bureau chief in Shanghai, Hong Kong and Detroit and as a Washington correspondent. He lived and reported in mainland China through the pandemic.

A version of this article appears in print on April 13, 2026, Section B, Page 1 of the New York edition with the headline: War Highlights China’s Renewables Lead. Order Reprints | Today’s Paper | Subscribe