US Media Axios: China Profits Stealthily from Observing Iran War
According to US media Axios, China is quietly benefiting from the US-Israel conflict with Iran in terms of military, energy, and diplomatic influence, without firing a shot or spending a dime. As the US depletes its advanced weaponry, China observes AI-integrated warfare and leverages its clean energy supply chain dominance and ample strategic oil reserves to expand its influence.
📋 Article Processing Timeline
- 📰 Published: April 24, 2026 at 13:26
- 🔍 Collected: April 24, 2026 at 13:31 (5 min after Published)
- 🤖 AI Analyzed: April 24, 2026 at 19:30 (5h 58m after Collected)
Central News Agency
(Washington, April 23, CNA comprehensive foreign news report) The war between the United States and Israel against Iran shows no end in sight. Some analysts suggest that as the US consumes large quantities of advanced ammunition, Beijing observes AI integration into combat operations for free, and leverages its advantage in the clean energy supply chain and ample strategic oil reserves, making China the silent beneficiary of this conflict.
An analysis by Axios news network points out that the Iran war allows China to strengthen its diplomatic leverage, clean energy capabilities, and even intelligence on the US military without firing a shot or spending a dime. The impact spans supply chains, energy procurement, geopolitical risks, and the competition for more advanced artificial intelligence (AI) and weapon technologies.
● Military: US Consumes Ammunition and Gets Free Practice
The US deployed approximately 80% of its JASSM-ER stealth cruise missiles in operations against Iran, reallocating stocks originally deployed in the Pacific. The war has significantly depleted US Tomahawk cruise missiles, Patriot air defense missiles, Terminal High Altitude Area Defense (THAAD) interceptors, and drones.
Beijing can also take the opportunity to observe how the US uses AI for targeting and how it rotates aircraft carrier strike groups, which is more valuable to Chinese military planners simulating an invasion of Taiwan than any war game.
● Energy: Beijing Passes Stress Test
In terms of energy, China has become one of the winners in the ongoing turmoil in the Strait of Hormuz, largely due to Beijing's past layout of its energy structure, including vast oil reserves.
In addition, China controls over 70% of the global supply chains for solar, wind power, batteries, and electric vehicles. When oil and natural gas are weaponized, import-dependent countries will accelerate their transition to renewable energy, benefiting China's green energy industry. The longer the disruption in the Strait of Hormuz, the deeper the world's reliance on China.
A February report by the Oxford Institute for Energy Studies (OIES) stated that China significantly increased its oil reserves in 2025, primarily due to: relatively low oil prices caused by weak demand, increased risk of supply disruptions from rising geopolitical risks, and new domestic energy regulations requiring companies to hold more reserves.
According to data from the US Energy Information Administration (EIA), China's strategic petroleum reserves reached nearly 1.4 billion barrels in December 2025, compared to 413 million barrels for the US, 263 million barrels for Japan, 79 million barrels for South Korea, and 21 million barrels for India. Chinese official data shows that China continued to increase reserves before the Iran war broke out at the end of February.
Although about half of China's oil imports pass through the Strait of Hormuz, China's energy self-sufficiency rate is as high as 85%. Renewable energy combined with nuclear power now accounts for over 20% of China's energy consumption, surpassing oil last year to become the second-largest energy source.
Axios co-founder and CEO Jim VandeHei described the Iran war as 'a stress test that Beijing's energy strategy was designed to meet.'
● Diplomatic Image and AI Development: Beijing Picks Up the Gun
Axios reported that while Trump threatened to 'bomb Iran back to the Stone Age,' Beijing quietly assisted Pakistan in bringing the US and Iran to the negotiating table. Ian Bremmer, president of the global political risk consulting firm Eurasia Group, stated bluntly that allies in Asia saw the US withdraw missile defense capabilities and shift naval power from the Pacific to the Persian Gulf.
The financial impact of the war will also fuel China's AI development. Billions of dollars in AI infrastructure projects by tech giants such as Microsoft, Oracle, and Nvidia in the Persian Gulf region face indefinite geopolitical risks due to Iranian attacks on data centers and other related targets in the region.
Every dollar that cannot be invested in the Persian Gulf due to instability is one less dollar used to build alternatives outside of China's infrastructure.
● Amplifying Beijing's Rare Earth Advantage
The US currently has almost no large-scale heavy rare earth refining capacity, while China controls about 70% of global rare earth mining, 90% of refining, and rare earth magnet manufacturing capabilities.
The Tomahawk missiles, JDAM glide bombs, and Predator drones used by the US in the war all require rare earths for their precision guidance systems. With each high-performance weapon consumed, the US's dependence on China's supply chain deepens. (Edited by Chen Yi-wei) 1150424
(Washington, April 23, CNA comprehensive foreign news report) The war between the United States and Israel against Iran shows no end in sight. Some analysts suggest that as the US consumes large quantities of advanced ammunition, Beijing observes AI integration into combat operations for free, and leverages its advantage in the clean energy supply chain and ample strategic oil reserves, making China the silent beneficiary of this conflict.
An analysis by Axios news network points out that the Iran war allows China to strengthen its diplomatic leverage, clean energy capabilities, and even intelligence on the US military without firing a shot or spending a dime. The impact spans supply chains, energy procurement, geopolitical risks, and the competition for more advanced artificial intelligence (AI) and weapon technologies.
● Military: US Consumes Ammunition and Gets Free Practice
The US deployed approximately 80% of its JASSM-ER stealth cruise missiles in operations against Iran, reallocating stocks originally deployed in the Pacific. The war has significantly depleted US Tomahawk cruise missiles, Patriot air defense missiles, Terminal High Altitude Area Defense (THAAD) interceptors, and drones.
Beijing can also take the opportunity to observe how the US uses AI for targeting and how it rotates aircraft carrier strike groups, which is more valuable to Chinese military planners simulating an invasion of Taiwan than any war game.
● Energy: Beijing Passes Stress Test
In terms of energy, China has become one of the winners in the ongoing turmoil in the Strait of Hormuz, largely due to Beijing's past layout of its energy structure, including vast oil reserves.
In addition, China controls over 70% of the global supply chains for solar, wind power, batteries, and electric vehicles. When oil and natural gas are weaponized, import-dependent countries will accelerate their transition to renewable energy, benefiting China's green energy industry. The longer the disruption in the Strait of Hormuz, the deeper the world's reliance on China.
A February report by the Oxford Institute for Energy Studies (OIES) stated that China significantly increased its oil reserves in 2025, primarily due to: relatively low oil prices caused by weak demand, increased risk of supply disruptions from rising geopolitical risks, and new domestic energy regulations requiring companies to hold more reserves.
According to data from the US Energy Information Administration (EIA), China's strategic petroleum reserves reached nearly 1.4 billion barrels in December 2025, compared to 413 million barrels for the US, 263 million barrels for Japan, 79 million barrels for South Korea, and 21 million barrels for India. Chinese official data shows that China continued to increase reserves before the Iran war broke out at the end of February.
Although about half of China's oil imports pass through the Strait of Hormuz, China's energy self-sufficiency rate is as high as 85%. Renewable energy combined with nuclear power now accounts for over 20% of China's energy consumption, surpassing oil last year to become the second-largest energy source.
Axios co-founder and CEO Jim VandeHei described the Iran war as 'a stress test that Beijing's energy strategy was designed to meet.'
● Diplomatic Image and AI Development: Beijing Picks Up the Gun
Axios reported that while Trump threatened to 'bomb Iran back to the Stone Age,' Beijing quietly assisted Pakistan in bringing the US and Iran to the negotiating table. Ian Bremmer, president of the global political risk consulting firm Eurasia Group, stated bluntly that allies in Asia saw the US withdraw missile defense capabilities and shift naval power from the Pacific to the Persian Gulf.
The financial impact of the war will also fuel China's AI development. Billions of dollars in AI infrastructure projects by tech giants such as Microsoft, Oracle, and Nvidia in the Persian Gulf region face indefinite geopolitical risks due to Iranian attacks on data centers and other related targets in the region.
Every dollar that cannot be invested in the Persian Gulf due to instability is one less dollar used to build alternatives outside of China's infrastructure.
● Amplifying Beijing's Rare Earth Advantage
The US currently has almost no large-scale heavy rare earth refining capacity, while China controls about 70% of global rare earth mining, 90% of refining, and rare earth magnet manufacturing capabilities.
The Tomahawk missiles, JDAM glide bombs, and Predator drones used by the US in the war all require rare earths for their precision guidance systems. With each high-performance weapon consumed, the US's dependence on China's supply chain deepens. (Edited by Chen Yi-wei) 1150424