China has begun limiting exports of jet fuel, diesel, and fertilisers as worries grow over a possible crisis around the Strait of Hormuz. The move has triggered concerns in major Asian economies about potential shortages of essential supplies.

According to a report by Financial Times, citing industry sources, diplomats, and analysts, China’s top planning body, the National Development and Reform Commission (NDRC), has recently asked fertiliser exporters to stop overseas shipments of certain products.

Earlier curbs on fuel exports

This step follows earlier instructions issued this month to large state-backed refiners to suspend exports of jet fuel, diesel, and kerosene. Experts say these measures show Beijing’s strategy to conserve energy and food-related supplies while ensuring stability in the domestic market.

No official announcement yet

So far, Beijing has not made any formal public announcement about these export restrictions, which could impact countries like India, Australia, and Vietnam. However, according to the report, a fertiliser company employee in Shandong province said their firm had been told to halt shipments to India. Some exports to Southeast Asia are still continuing. Analysts and diplomats familiar with the sector also confirmed that export controls are tightening more broadly.

Experts point to supply protection strategy

Dai Jiaquan, chief economist at CNPC’s internal think tank, told the Financial Times that exports of aviation fuel “are paused,” without giving further details.

Meanwhile, Even Pay said it is highly likely that China will expand these controls further. “we can be very confident” Beijing will extend and expand the scope of export controls on fertilisers. “There is going to be an ‘all hands on deck’ effort to ensure any and all fertiliser is kept at home for as long as possible to be sure domestic farmers have what they need  before any exports are considered,” she said.

Fast action without formal policy

In the past, China has officially announced export curbs during trade disputes, such as the US-China trade war involving rare earth materials. However, analysts told the Financial Times that the current situation is different. The lack of a formal announcement suggests that the NDRC is acting quickly in response to emerging risks.

Fuel exports unlikely to resume soon

Hu Min Min said it is “unlikely” that waivers will be given for fuel exports unless shipping through the Strait of Hormuz returns to normal. “We expect refineries will prioritise replenishing crude and product inventories and securing domestic supply over a rapid surge in exports,” she said.

Asian economies brace for impact

Countries that rely on Chinese supplies are preparing for disruptions. India, which imports about 10% of its fertilisers from China, could face shortages and rising costs. Other nations such as the Philippines, Vietnam, and Australia may also experience pressure on fuel, aviation, and agricultural sectors. Ye Lin said China could reconsider its export curbs if partner countries face severe difficulties. “When other countries are suffering, China could be a lifesaver.”