Amid the Iran War, China Positions Itself as a Stabilizing Force in Southeast Asia

As the escalating conflict in Iran triggers a severe global energy crisis, China is seizing the diplomatic opportunity to present itself as a calm and stabilizing superpower in Southeast Asia. Following a preemptive strike by the United States and Israel, and the subsequent assassination of key Iranian leaders, Tehran has retaliated by closing the Strait of Hormuz—the world's most critical maritime choke point for oil and gas.

The Hormuz Blockade and Beijing's Strategic Diplomacy

The closure of the Strait has sent shockwaves through global markets, recalling the dramatic images of a burning refinery in Bushehr on March 18, 2026. However, Iran has allowed non-combatant vessels, including Chinese freighters, to navigate the strait without interference. Beijing is actively leveraging this regional anxiety to demonstrate that it is a more reliable future partner than the United States.

"China is ready to strengthen coordination and cooperation with Southeast Asian countries to jointly address energy security issues," stated Chinese government spokesperson Lin Jian this week.

Li Mingjiang, a professor at the S. Rajaratnam School of International Studies in Singapore, noted that Beijing is playing its cards carefully. "China is showing itself as a responsible and stabilizing actor. Beijing is calling for de-escalation in the Middle East and promising to work with Southeast Asian countries to overcome energy shortages," Li explained.

Southeast Asia in Crisis Mode

Across Southeast Asia, governments are scrambling to implement emergency measures. Growth forecasts for the year have been slashed, and nations are desperately seeking alternative suppliers, with many reportedly turning to Russia. While Malaysia and Brunei are net oil exporters and exceptions to the import dependency, they are not immune to the sweeping regional inflation.

• Philippines: On Tuesday, March 24, 2026, Manila declared a one-year national energy emergency, citing an "imminent danger" to the nation's supply. The public administration has shifted to a four-day work week to curb consumption. Logistics companies are receiving emergency subsidies due to skyrocketing fuel prices, and a severe shortage of aviation fuel threatens to ground flights imminently.
• Vietnam: The government has activated state funds to stabilize fuel prices. Airlines have been instructed to prepare for immediate schedule adjustments, as oil importers warn that aviation fuel supplies can only be guaranteed through the end of March.
• Indonesia: Jakarta has pledged to absorb a portion of the soaring costs through its state budget and increased subsidies.
• Thailand: Authorities are considering new relief measures as surging diesel prices devastate the fishing industry, potentially forcing fleets to remain in port.
• Malaysia: The government has significantly increased subsidy expenditures to maintain stable prices at the pump.

The "Superpower of Peace" Narrative

Much like Southeast Asian capitals, Beijing is eager to prevent the Middle Eastern conflict from engulfing more nations and is advocating for the swift reopening of the Strait of Hormuz. Chin-Hao Huang, Co-Director of the Centre on Asia and Globalisation at the Lee Kuan Yew School of Public Policy, observed that regional actors are desperate to remain neutral.

"To the extent that China has reacted publicly at all, it has only been with calls for restraint, a ceasefire, and dialogue—points that are shared by most governments in Southeast Asia," Huang added.

This crisis provides a perfect backdrop for Beijing's narrative: portraying China as the sole superpower dedicated to peace, free trade, and multilateralism, in stark contrast to what it depicts as an aggressive and self-serving United States. This messaging was further reinforced by Zhao Leji, China's parliament speaker and the country's third-ranking official, during his keynote address at the Boao Forum on the tropical island of Hainan on Thursday, March 26, 2026.