Economy · June 2026

China has begun tapping its commercial oil stockpiles to mitigate the impact of the Gulf crisis and rising crude prices, with multiple reports highlighting the move as the Middle East conflict drags on. Producer inflation in China accelerated due to higher energy costs, while consumer inflation unexpectedly stalled despite the oil shock. The Iran crisis has forced Beijing to draw on its strategic reserves to stabilize supply. China’s Gaokao exam signals shifts in the country’s manufacturing talent pipeline as the education system adapts to new industrial demands. Chinese companies are quietly conducting layoffs as Beijing promotes AI adoption, while healthcare stocks fell to record low valuations on AI-driven capital drain. BYD aims to become the world’s largest car company within five years, as Ferrari’s new EV model highlights European struggles to lure back China’s superrich. OpenAI said China-linked accounts aimed to fuel opposition to US data center expansion, as a theory that China funds data center opponents gains traction among the rich.