Investors told – Don’t underestimate China

Mike Taylor

Managing Editor and Publisher

7 May 2026

Investors need to be aware of China’s quiet emergence as the power broker in the Strait of Hormuz crisis, according to the chief executive of UK-based financial advisory firm, deVere Group, Nigel Green.

In an assessment of market events over the past three days, Green said China’s emergence could become one of the most investment stories of the year.

“While markets focused on Donald Trump’s reversal over military escorts in the Gulf, Beijing was meeting directly with Iran and positioning itself at the centre of diplomacy tied to global energy flows,” he said.

“The timing of the visit highlights a geopolitical realignment taking place in real time. China is expanding its influence around the world’s most strategically important oil corridor without military intervention or a naval coalition.”

The Strait of Hormuz handles roughly 20% of global seaborne oil flows and a large share of LNG exports.

Around 84% of crude shipments moving through the route are destined for Asia, with China remaining the world’s largest crude importer and one of the biggest buyers of Iranian oil despite years of US sanctions pressure.

Green says investors are still focused heavily on earnings momentum and AI-driven equity gains while underestimating the longer-term implications of Beijing’s growing influence over energy diplomacy and trade routes.

“Strong corporate earnings, especially across AI and large-cap tech, continue supporting equity markets near record highs,” he says.

“But underneath the headline indices, capital is, quite sensibly, moving more carefully. Investors are paying much closer attention to freight exposure, energy sensitivity, supply-chain resilience and pricing power.”

Green noted that China brokered the restoration of diplomatic ties between Saudi Arabia and Iran in 2023 and has steadily expanded its influence across the Gulf through trade agreements, infrastructure investment and long-term energy partnerships.

He says Beijing’s role is strengthening because every major economy remains dependent on stable Gulf energy flows.

“Washington increasingly, it seems, needs China engaged if it wants diplomatic stability around Hormuz.

“This represents a major change in geopolitical influence because Beijing now holds economic and political leverage with Tehran that Western governments do not.”

Green believes the developments are likely to drive stronger investor interest toward sectors linked to energy security, strategic infrastructure, commodities, defence and cybersecurity.