The ongoing US-Israel war in Iran, now in its sixth month, is increasingly likely to reshape Beijing’s policy priorities, according to prominent economist Mao Zhenhua.
While the direct economic impact on China has remained limited so far, the prolonged geopolitical instability is expected to sharpen policymakers’ focus on domestic economic challenges.
Mao argues that the external shock is acting as a catalyst for internal reflection.
With global supply chains and energy markets under sustained pressure from the conflict, Chinese authorities face mounting questions about how long they can maintain current growth trajectories without addressing structural domestic weaknesses.
The economist suggests that the war is forcing a recalibration of risk management, shifting attention from external trade expansion to internal stability.
This potential policy pivot comes against a backdrop of mixed economic signals.