In late 2022, as he secured his third term in office, Chinese President Xi Jinping issued a serious warning to his top brass: they should prepare for “stormy seas” and “worst-case scenarios.” The party leader was obsessed with the crises of the “gray rhinoceros”obvious dangers but for which one is often not prepared.
Today, with the Middle East submerged in a deep war that obstructs vital trade routes, the Asian giant’s resilience and energy strategy face an unprecedented litmus test. At the heart of this geopolitical storm is not only oil, but also “radioactive black gold” – uranium.
A suffocation point. To resist this impact, China’s Ministry of Finance has budgeted 110.68 billion yuan (about $16 billion) for resource storage in 2026, an increase of 8.1% from the previous year. As Even Pay, director of the strategic advisory group Trivium China, explains to the Financial Timesfor decades Western economists criticized the inefficiency of maintaining these gigantic reserves, but the current crisis has completely vindicated Beijing’s strategy.
A giant thirsty for uranium. However, at the heart of this geopolitical storm are not only fossil fuels, but also the “radioactive black gold” – uranium. The vulnerability of sea routes has accelerated Beijing’s urgency to escape its dependence on oil. The Chinese nuclear program is advancing at a dizzying pace. At the end of 2024, the country had 58 nuclear power units in commercial operation and 27 under construction. In fact, the government approves between ten and eleven reactors a year, with the goal of double its capacity by 2040.
The problem? China produces very little uranium. According to World Nuclear AssociationIn 2023, national production was barely 1,700 tons (4% of the world), being forced to import about 22,000 tons the following year. As emphasized Bloombergthe country depends on imports to satisfy more than 70% of its domestic demand for this fuel.
The strategy at hand. To overcome this deficit and prevent its nuclear sector from suffering the same strangulation as oil, Beijing has deployed an unprecedented financial, geological and technological strategy:
- Financial muscle: In December 2025, China National Uranium Co., the only company with rights to extract this element in the country, debuted on the Shenzhen stock exchange. According to Bloombergits shares tripled in its premiere, raising some 4.1 billion yuan (570 million dollars) that will be used to boost domestic and foreign mines.
- The Treasure of Ordos: Salvation could be under the sand. As reported by the specialized media Futurethe discovery of a monumental deposit of 30 million tons of uranium has been estimated in the Ordos Desert, in Inner Mongolia. China has managed to develop leaching technology on site to extract this mixed material in sandstone in an economically viable and environmentally friendly way.
- “Fishing” uranium in the ocean: With demand expected to exceed 40,000 tons in 2040, China has looked at the sea. China National Nuclear Corporation (CNNC) announced a historic milestone– The successful extraction of uranium at the kilogram level from seawater in a real marine environment.
- Land alliances: To avoid maritime blockades, China seeks border allies. According to the magazine The DiplomatMongolia is trying to develop its critical minerals sector – such as the huge Zuuvch-Ovoo deposit operated by France’s Orano – and China is emerging as the natural customer due to its geographical proximity and railway infrastructure.
Beyond uranium. Beijing’s plan is not limited to securing traditional uranium. As we have explained XatakaChina has already commissioned the TMSR-LF1 reactor in Gansu province, which uses molten salts and thorium. Thorium is three times more abundant than uranium in the Earth’s crust, giving China an immensely rich “plan B” within its own borders.
On the other hand, nuclear energy is no longer just a source of electricity. In January 2026, the Xuwei project started in Jiangsu province. How we advancethis pioneering project combines third and fourth generation reactors to produce steam at very high temperatures for the petrochemical industry, with the aim of replacing more than 7 million tons of coal per year.
The century of the Chinese atom. The war in the Middle East has not stopped China’s ambitions; rather, it has validated the government’s obsession with economic security and preparedness for protracted crises.
As Western powers try to rebuild their nuclear industries, China has gone into full action. From the depths of the Ordos Desert to the waters off its coasts, the Asian giant is rewriting the rules of the game. It is no longer just about surviving global instability, but about securing the fuel necessary to dominate the energy landscape of the 21st century.
Image | World Economic Forum and IAEA
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