Against the backdrop of a turbulent oil market and geopolitical upheavals, China's industrial enterprises recorded impressive revenue growth.
Chinese companies demonstrated an impressive revenue growth of 15.5% in the first three months of the current year. This marks the best start since 2018, excluding the anomalous spike in 2021. Such positive dynamics are observed despite the turbulent rise in Brent crude oil prices.
Oil prices have soared nearly 48% since the end of February following U.S. and Israeli strikes on Iran, leading to significant increases in costs for chemicals, fibers, and plastics in global supply chains. However, what is particularly noteworthy is that producer price growth in China turned positive in March for the first time in three years, breaking the longest deflationary streak in decades.
Market tensions significantly escalated on April 24 when the Trump administration imposed sanctions on an independent oil refinery in China. The reason was the purchase of Iranian oil worth billions of dollars.
This decision could inflict serious damage on a key energy source that accounts for a quarter of the country's refining capacity. Nevertheless, large stocks of raw materials, stored both on land and in tankers, currently provide a reliable safety cushion for this major importer.
