UPDATE 1-China pledges to strengthen energy security, economic self-sufficiency

The Xinhua readout ‌did not mention the U.S.-Israeli war on Iran, but said: "We must systematically respond to ‌external shocks and challenges, improve energy resource security guarantee levels and counter various uncertainties with the certainty of high-quality development." The phrase "high-quality development" refers to the pursuit of scientific and technological progress with the goal of moving China higher ⁠on the ​value-added ladder.

China's top leadership ​on Tuesday pledged to strengthen the nation's ​energy security and respond to external ‌shocks ​by continuing to pursue a policy of rapid technological development and greater control over supply chains to strengthen economic self-sufficiency.

The Politburo, ‌a top decision-making body of the ruling Communist Party, was cited as saying by state news agency Xinhua that the economy got off to a better-than-expected start this year. The Xinhua readout ‌did not mention the U.S.-Israeli war on Iran, but said: "We must systematically respond to ‌external shocks and challenges, improve energy resource security guarantee levels and counter various uncertainties with the certainty of high-quality development."

The phrase "high-quality development" refers to the pursuit of scientific and technological progress with the goal of moving China higher ⁠on the ​value-added ladder. China's economy ⁠grew 5.0% in the first quarter, at the top of its full-year target range of 4.5% to 5.0%, ⁠showing higher resilience than most other economies to the energy and commodity shocks caused by the Iran ​war.

Analysts say ample oil reserves, heavy use of coal and high adoption of ⁠solar, wind and electric vehicles have given China better chances of weathering the closure of the Strait of ⁠Hormuz than ​many European or Asian economies. But China is not immune to the fallout from the conflict.

Soaring energy and raw materials prices threaten to drive up production costs and ⁠squeeze already thin margins at factories that employ hundreds of millions of people. And the ⁠economic hit taken by ⁠other countries could slow demand for Chinese exports. Shipments grew just 2.5% last month, slowing sharply from 21.8% in the January to February ‌period.