Key moments
On April 6, 2026, in Beijing, Chinese President Xi Jinping announced a bold initiative aimed at accelerating the planning and construction of a new energy system. This move is designed to safeguard China’s energy security amidst growing international pressures and domestic energy demands.
Currently, coal remains a dominant force in China’s energy landscape, accounting for more than half of its energy mix. China operates over half of the world’s coal-fired power capacity and is the largest consumer of coal globally. This heavy reliance on coal has raised concerns about environmental sustainability and energy security, prompting the need for a diversified energy strategy.
In a significant development, China began construction of the world’s largest hydropower dam on the eastern rim of the Tibetan Plateau in July 2025. This project is part of a broader strategy to transition towards renewable energy sources, which Xi Jinping emphasized as essential for ensuring both energy security and economic development. CCTV reported that “A greener, more diversified and resilient new energy system will provide a strong guarantee for China’s energy security and economic development.” This statement underscores the urgency of shifting away from fossil fuels.
While China is focusing on its energy strategy, its international relations are also evolving, particularly with Canada and the United States. Canada, which is China’s second-largest trade partner, has been working to increase its overall exports to China by 50% by 2030. Currently, bilateral trade between the two nations stands at approximately C$120 billion ($86 billion). However, trade relations have been strained, with China imposing a 25% duty on imports of Canadian pork.
François-Philippe Champagne, Canada’s Minister of International Trade, has expressed optimism about the future of trade relations, stating, “We are becoming a partner of choice.” However, he also acknowledged the need to resolve existing trade irritants, emphasizing that “Part of my message to the Chinese side was, really, we need to get to a point where we remove these trade irritants.” This highlights the delicate balance of cooperation and conflict in the trade relationship.
China’s economy has faced significant challenges, particularly due to U.S. tariffs and the need for energy imports from Iran. The effectiveness of negotiations between the U.S. and Iran remains unclear, adding another layer of complexity to China’s energy and trade strategy. Additionally, the outcome of discussions between Canada and China regarding trade and supply chain integrity is uncertain.
As China moves forward with its energy strategy, the implications for global trade and international relations will be closely monitored. The shift towards a more diversified energy system could reshape not only China’s domestic landscape but also its interactions with key global partners.
Details remain unconfirmed regarding the full impact of these developments on China’s energy security and international trade dynamics. The coming months will be crucial in determining how these strategies will unfold and influence China’s role on the global stage.
