China's top leaders pledged to counter external shocks and enhance energy security while highlighting the economy's better-than-expected performance so far this year.
China will "enhance the level of energy and resource security and counter various uncertainties with the certainty of high-quality development," the Communist Party's decision-making Politburo led by President Xi Jinping said in its first economy-focused meeting after the war in Iran broke out.
The economy has gotten off to a strong start, with key indicators surpassing expectations, according to an official readout published by the Xinhua News Agency on Tuesday. That showed the economy's "powerful resilience and vitality" even though the improving trend still needs to be solidified, it said.
China has suffered limited spillovers so far from a conflict that triggered a global energy crisis. Growth rebounded more than expected in the first quarter, with Beijing's years-long efforts to strengthen energy security helping to avert severe disruptions in March.
Still, the Strait of Hormuz's extended blockade poses a serious threat to the world's No. 2 economy. In addition to pinching supply, high oil prices could weigh on consumption globally and hurt Chinese exports, a key growth engine in recent years.
For now, upbeat first-quarter results will allow Chinese policymakers to wait and assess the situation before rolling out additional stimulus. The government has already boosted public spending and infrastructure investment in 2026, supporting growth.
Expectations for further monetary easing declined as the oil shock lifted the inflation outlook. Economists at Goldman Sachs Group Inc. no longer forecast a reduction in interest rates this year, even as many still expect a cut to banks' reserve requirement to ensure abundant market liquidity to absorb government bond sales.
In a treehouse nestled in redwoods north of San Francisco, California Governor Gavin Newsom stood cold and hungry as Sergey Brin, the world's fourth-richest man, and his wellness-influencer girlfriend told him they were leaving the state.
It was late in the evening at a Christmas party hosted by crypto titan Chris Larsen—featuring singer Janelle Monáe and a towering abominable snowman with glowing red eyes—when Brin and his partner, Gerelyn Gilbert-Soto, confronted Newsom about a new proposal to tax billionaires in California, according to people who've spoken with the governor. Such a levy could hit Brin's stake in Alphabet Inc. and his $272.6 billion fortune.