War Raises The Need For More China Stimulus

By Chang Shu, Bloomberg Markets Live reporter and economist

China has cushions to damp the oil shock from the Iran war, including reserves, and the capacity to cap price hikes and source oil elsewhere. With prices under downward pressure from excess supply, it has scope to absorb the inflationary impulse. An extended war would present bigger threats — demand destruction in overseas markets and supply-chain snags could hurt exports, the main growth driver.